3 Key Outsourcing Mistakes Companies Make When Starting Out

You have decided to start on your outsourcing journey, but you care about your business and know that outsourcing will allow you to save money, be more efficient and grow your business. But many companies make mistakes when beginning this outsourcing process. Here are three common mistakes and how a consultant can help you to avoid them.


A lot of companies start their outsourcing process with their customer service process, using contact center agents to provide support to your customers (on the phones, through webchat or by email). This can be a great place for many businesses to start. However, the key decision becomes not whether to outsource voice work but which segment! Is Customer Service (inbound) an entry point? Collections? If Collections, is it best to start with the earlier delinquency or later delinquency? The early delinquency (first 30 days) sees the highest volume of your customers which means QUALITY of the service is critical. There are a lot of other business processes that you can outsource. What about your quality processes, or data entry? They are both options that will allow your team to focus on other essential tasks but is not customer-facing, so there is a minimal brand risk.

As we already know consultants can take an unbiased view of your business and offer a fresh perspective based on their experience. So, working with a consultant will help you make your outsourcing decision.


Some questions on a Request for Proposal fill a need from a security or process standpoint. However, it is important in the RFP to ask questions that help you to gain an understanding of the culture of the business and how they will handle your business. How do they engage their employees – remember that an engaged employee is much more likely to offer quality work. What is the turnaround time when you have a question or comment? Will you be able to get a quick response or will you be waiting for days for details? Another key component of your RFP process must substantiate the client’s responses. Marketing material is a sales pitch that is designed to paint the company in the best possible light. It is important that you have a method in the process to validate the answers.

If it is your first time outsourcing your work, you might not know what questions to ask and what is important to know about your potential partner. Working with a consultant with experience can streamline this process. They know what is important to know in the selection process and can help you to build a transparent, fair and effective proposal process. For example, the RFP process with M&G Solutions is extremely robust and includes time understanding our client’s culture, sitting with their teams, and gaining a deep understanding of their business problem. The below image outlines our RFP process.


One of the key reasons that companies choose to outsource work is cost savings. But, focusing only on the price that they offer is a mistake. The lowest price might come with hidden costs you have not accounted for, for example, additional costs for Management and IT support.

This is one of the most important reasons to work with a consultant when choosing the right partner. A consultant will be able to address these concerns and help you to find the partner that is the best fit for you, including the cost savings.

At M&G Solutions we have decades of experience working with companies throughout the entire outsourcing process. From companies just starting their outsourcing journey to veteran outsourcers who have been outsourcing work for decades. Contact us today to see how we can help you to plan your outsourcing strategy, find the right partner and monitor your partner for success.