DISADVANTAGES OF GENERAL MOTOR

Problem 1: Post-Contract Process and the Right Decision not understand.

The 1 problem in the implementation of outsourcing is the lack of
understanding of the processes of post-contract and the right decision. In
short, customers and service providers are not willing to cooperate
operations after the decision signing. The contract is that the service is
simply not done, get stalled implementation activities, stakeholders,
customers and employees of service providers are both frustrated, and
the whole table to achieve the benefits the expected business is delayed.
Having the right process and the results assessed as the biggest problem
may seem surprising given the possibility to high emotional and
behavioral changes that come with outsourcing. However, since this TPI it
is this lack of definition and understanding is a major cause of many other
issues.
This problem occurs if the new process and the right decisions are not well
designed or socialized. For example, with the new outsourcing model, in
which

customers

can

request

service

organization.

How about the "emergency" demand change - which is acted on

immediately, and what constitutes an "emergency" These and many other
questions about the monetary transmission process, contracts, and
services and the right decisions must be answered and submitted to the
relevant stakeholders in customer care and service provider organizations.
Outsourcing contract is not intended to be (and should not) a manual
operation;

Therefore,

communicate changes.

additional

work

is

needed

to

design

and

Problem 2: Little or No Support From Leader to Receive Customer Service

Another big problem that exists in many outsourcing implementation is
the lack of buy-in from senior leaders of customers who will be the
recipient of outsourcing services. It can cause active or passive resistance
to the overall outsourcing model to realize the desire for "special
treatment" or opt out of the service outsourcing, and business decisions,
case deterioration.
Many time leaders who will receive future services not actively participate
in the evaluation of outsourcing or receive proactive communication about
the
status.

This

lack

of

participation

has

two

detrimental

effects:

1) leader who receive services are generally not prepared for the
changes

that

will

come.

2) evaluation and negotiation team cannot fully represent or understand

the unique service for a specific unit in the organization.

Problem

3:

Poor

Mutual

Understanding

Contracts

After signing the preliminary contract, both clients and service providers
have team members who are trying to manage various activities
implementation and ongoing operations early. Customers have staff who
are just learning the details of the agreement, emotions may be imposed
on the decision to outsource and also have personal views about what
service

providers

need

to

(and

should

not)

perform.

In this issue service providers have team members who are new to
trading, and sometimes take a view "this is what we did at my last
appointment"

without

fully

understanding

the

nuances

of

certain

agreements which have a large number of new people negotiated. The

combined with a high-speed implementation of the necessary damage
absorption period, which leads to uninformed opinion on both sides of the
"what's in the contract."

Problem 4: Customer Retention Team Not in Place or Too Small

With many outsourcing implementation, there is a blatant lack of team
maintained / governance defined or too small. This causes issues in
implementation because there is no one "directing traffic" or force is too
small

to

handle

both

volume

and

complexity.

Clients tend to delay making a decision on troop / governance stored for a

variety of reasons, including:
All energy and efforts focused on "agreement" in terms of contractual
terms, conditions, and pricing, without the time / resources to focus on
issues

-isu

post

contract.

Customers may defer making a decision until a change of staff and

communicate them unsure about the final results of the outsourcing
agreement.
Customers expect that since they are outsourcing the work, service
provider who will take care of everything and the customer can "handsoff" management responsibilities continued, resulting in a lack of
administrative staff.

Problem

5:

Customer

Retention

Force

Required

Skills

Shortage

While customers put a team retained to manage the implementation of

outsourcing and ongoing operations, the team may not have the right
skills

needed

for

their

new

role.

According to data collected by the Governance Benchmark database TPI,

customer-maintained

organization

often

looks

like

this:

60 percent of employees assigned to organizational governance does

not

have

an

outside

source

before

experience.

40 per cent of customers in the benchmarks do not provide any initial

training for governance team assigned to manage the agreement.
Only 20 percent of customers feel like they give a fairly continuous
training

for

their

governance

team.

Also, in the experience of TPI, most customers just assume the existing
staff in their organization and usually want to keep the person with the
best technical experience and / or business processes. However, these
people sometimes have a hard time making the switch between
performing or managing the day-to-day work and hold service providers
accountable.

Problem 6: Loss of Key Talent and / or Poor Knowledge Transfer

Outsourcing creates uncertainty for existing staff and contractors who
provide services to the client organization. Uncertainties that could cause
this staff to find another place to work and leave either before or during
the

implementation

of

outsourcing,

resulting in the need to backfill either the source or reduce the amount of
work

done

by

the

organization.

In addition, some clients involved staff on a temporary basis for the

transfer of knowledge to the service provider in implementation. If

employees are not motivated properly or if the service provider does not
do a good job with the transfer of knowledge, this can lead to decreased
efficiency in service delivery and may introduce operational risk.
Both of these issues can be a major problem if left untreated. However, it
is in the middle of our position as customers and service providers both
recognize the importance of these issues and generally make reasonable
attempts at reduction.

Problem 7: The lack of capacity to Meet Pent-Up Demand for Services

Prior to the implementation of outsourcing, customer organizations can
block large projects and unnecessary expenses. This is for two reasons:
1) The customer can wait expertise of the service provider before
activities

begin

2) The customer may restrict investment in a designated area for

outsourcing.
If the client has limited activity, there are a large number is typically pentup demand and / or conditions that must be met not long after the period
of

implementation

begins.

However, the ways in which new initiatives prioritized, estimated,

assessed, approved, scheduled and implemented all possible in the midst
of changes during the transition to a new outsourcing model. This causes
the "pig trying to fit through a garden hose" just melts requests were met
until a new model is in place.

Problem

8:

End

User

Resistance

to

Wear

New

Method

In this issue of third-party service providers who are brought in to become

"agents of change." Sponsor outsourcing like to achieve business benefits

quickly, which requires changes in processes, technology, and behavior
(potentially) staffing. However, for many outsourcing service provider, is
not in full control of the user result. The end-to-end on the receiving end
of the new method can prevent the achievement of business objectives
through a lack of compliance, dispute strategy or delays in discharging
their

responsibilities

is

required.

Problem 9: Culture Clash Between Customer and Service Provider

TPI see cultural battle between the customer and the service provider
happens on two levels, namely corporate culture and (increasingly in the
global economy today) culture of the country region. In terms of corporate
culture, service providers and customers may have different norms in
terms of speed, style, and other aspects of decision-making structure.
Another potential clash of corporate culture of the organization is the fact
that outsourcing represents trade relations between the two separate
entities. Sometimes both organizations can take extreme, inflexible
position that serves to create tension or distrust (for examples customers
took the position that "I do not care what the contract says, I" customer
and service providers alike dig in heels and took the view that "we are
delivering

to

contract

specifications").

While in terms inhibitor regional, national language and understand the

subtleties of verbal, non-verbal and written communication can be
problematic (especially when the work is done offshore with little contact
other than by telephone or e-mail). Also, expectations regarding the level
of public debate, acknowledgment of the potential problems, and a
willingness to change the direction of a defined process to complete the
work may vary between regions and nations.

Problem 10: Changes Do not Last

Old habits die hard. Even for organizations that initially change the
behavior and processes to achieve success with outsourcing, there can be
a significant tendency to revert to old ways of doing things. TPI see
customers started cutting back on dialogue with stakeholders, their
businesses and service providers, reducing administrative staff and
reduce the rigor of the process over time.
This usually occurs because of the cessation of customers believe it will
continue to happen automatically, and therefore "we can eliminate
unnecessary cost." The irony of these decisions is that customers are
cutting back on the things that have made very successful outsourcing at
the moment ago and needed to make.