2 Reasons Outsourcing Projects Fail

During our 30 years of experience in the industry, we have seen many ways for outsourcing projects to fail. While the reasons for failure vary from case to case, here are two important reasons for failure:

  • Not enough time to set up the projects
  • Lack of support from operational staff

Not enough time to set up the project – Outsourcing title production or title plant posting projects requires the transfer of a great deal of company, county and state- specific information to the outsourcing company. Some (or – a lot) of this information is not documented at the client site; it has been orally communicated internally over the years. It takes skill and time to document the instructions and ensure that nothing is missed.

At the same time, companies often enter into outsourcing agreements when business has suddenly increased, and viewing outsourcing as an easy way to ease the inhouse workload. When business demands for rapid project set up meets the lack of documented instructions, disaster ensues.

At HDEP, we a have a system in place to make sure this does not happen. Quite often we go through more than one test, maybe two or three just to make sure everything is documented and understood, our internal systems are set up and tested, and the customer’s staff is confident of the reports being created by our staff.

Lack of support from the lower level staff – A major reason for outsourcing title plant posting and title production is to reduce costs. Sometimes, reduced costs mean a smaller work force or shifted duties in the client’s office. Senior managers, looking at the long term future of the company and its growth, have determined that outsourcing is a critical strategy for company growth and prosperity. The affected staff, understanding that their jobs will change, and perhaps end, can derail a project by non-cooperation. A successful outsourcing initiative requires a thoughtful human resources initiative within the company.

If you would like to know more about HDEP’s accuracy-driven process or have any questions, please contact us.