Alert – Kindly note that NexGen Data Entry do all projects in-house and do not entertain outsourcing to a 3rd party or individual.

Most Common Outsourcing Mistakes and How to Avoid Them

Are you on a search to find a suitable business process outsourcing service provider for your business? Have you encountered unexpected issues while hiring an outsourcing company? Then, this blog is for you. Even though outsourcing offers innumerable benefits for businesses, you may not be able to enjoy them if you are making mistakes. So, in this blog, we shall describe the errors you may make while outsourcing and how to avoid them.

Common Outsourcing Mistakes

The following are those mistakes and innovative methods to overcome them.

  • Mistake 1

Absence of Proper Planning

It is almost certain that a weak project plan can lead to the failure of a project. In detail, if you choose a business process outsourcing service provider without a clear idea about your requirements and objectives, it will end badly.

How to avoid:

It You can begin by analyzing the needs and objectives of your business. Then, you can check which outsourcing model you require, whether offshore, onshore, nearshore, or any other model. Once you decide that, you can fix the timeline of the project. That is, when to begin, when to complete, or how many days the project can take.


  • Mistake 2

Omitting Quality for Budget

Quality and budget are something that must go hand in hand. If you are compromising the quality of service over the budget, it will harm your business. That is, it will remain an excellent barrier for business growth.

How to avoid it:

You mustn’t move beyond your budget limit, but at the same time, you must ensure the quality of the service you receive. The following are some suggestions that you can adopt to avoid the mistake.

  • Create a clear quality standard: You may set a clear standard for business process outsourcing services.
  • Conduct quality–price analysis: You can analyze whether you are getting that benefit for the money you invest.
  • Utilize strategic sourcing: Involve partnerships with providers who offer budget-friendly services without compromising the quality.

  • Mistake 3

Neglecting Terms and Conditions

Many companies sign that contract without looking at the terms and conditions section, but this issue might lead to unexpected blows. Hidden project charges, legal obligations, and ownership are some of the problems that may arise when you forget to analyze terms and conditions.

How to avoid it:

 You should not ignore what you are agreeing to while you are outsourcing. You can follow the following tips to avoid terms and conditions-related mistakes.

  • You can seek the assistance of your legal advisor to analyze the agreement.
  • Don’t sign the agreement in a rush; read it, study it, and sign only when you are clear about the matter mentioned in the agreement.

  • Mistake 4

Lack of Attention to Resources

Resources, workforce, and technology are the essential factors that mainly decide a project’s success. You will not receive quality solutions if you partner with a business process outsourcing service provider with poor resources.

How to avoid it:

You can overcome the mentioned mistake by taking the following measures.

  • Availability of technology: check whether the company you are going to hire possesses the latest technology.
  • Interview the workforce: if needed, you can interview the experts involved in the project. Also, you can study the skills of these experts and identify whether they have skills that match your needs.

  • Mistake 5

Partnering with the Wrong Service Provider

Companies, sometimes in a hurry, partner with business process outsourcing service providers that cannot meet their expectations. Low-quality work and missed deadlines are some of the issues associated with this. 

How to avoid it:

You can avoid this issue by adopting the following measures before hiring a BPO.

  • Check the experience: Analyze the experience and expertise of the business process outsourcing provider.
  • Study the Portfolio: You can look at the portfolio and ask for samples before outsourcing.
  • Analyze customer support: Identify whether the customer support department of the BPO service provider offers seamless customer service.

  • Mistake 6

Overlooking Data Security

Security of the data assets is a matter that cannot be avoided at any cost. If you neglect this, you may face malicious attacks and unauthorized access, which can ruin your data assets.

How to avoid it

To protect your data effectively, you can look for the following elements

  • NDA: Create a non-disclosure agreement (NDA) before initiating the project.
  • International data protection standards: Analyze whether the service provider you are partnering with follows international data protection standards.
  • Robust technology: Assess whether the BPO service provider uses top technology, tools, and methods to protect data.

Bottom Line

So, when you decide to outsource, don’t wait to learn the hard way, analyze everything clearly, and then decide.  NexGen Data Entry is an established company that offers unmatched BPO services to businesses in different corners of the world. If you want to partner with us, share your requirements with [email protected].