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1.Failure to Monitor :Before plunging on the outsourcing transaction, it would be better to know exactly how the company would be able to monitor their outsourced tasks. Monitoring is important because the company would be able to keep tabs with the process and evaluate if they are indeed doing well in their outsourcing transaction.

2.Too Much Expectations:Being realistic should always be the key in outsourcing. It means that one should not have false notions that outsourcing would be the “sole” solution to a company’s problem. This would only work towards a firm’s advantage if the firm have already considered the pro’s and con’s in the situation thus making them aware of the ordeal up ahead.

3.Unwise Project Assignment:
Assigning what kind of project and where it would be outsourced is a critical part of outsourcing. Firms must first decide which functions should be considered for outsourcing and where would be their ideal place to outsource. “Blindly” outsourcing would only lead to unwise business decisions.

4.Outsourcing Vital Functions:
The main purpose of outsourcing and offshoring is to help the company in focusing on their central functions. Unfortunately, some firms do not realize this and still continue to outsource valuable information and tasks. This kind of attitude in outsourcing would only lead to unwise and a probable high-risk transaction.

5.False Assumptions: Before plotting the contract in offshoring/outsourcing, it would be better to have logical conclusions as well as flexible terms that would make it easier deal with future problems. No one could predict what would happen in the future and it is easier to deal with it if it has been anticipated and planned ahead.

6.No Focus on Service: Many firms assume that once they have signed the contract, there is no need for them to interfere. It is vital that firms would monitor these activities on a daily basis, focusing on service. This is what most offshoring vendors focused on and it should be monitored because the company’s name and reputation is at stake here.

7.Not Staying Through the End:
The contract between firms and offshoring vendors should stick up to the end. For firms, it would be wiser to include the offshoring vendors in

the ending phase so that they would still provide the service that you need. A provision stating what should be done in case the partner experienced business downfall should also be discussed.

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Outsourcing