Why do clients go?

As an expert in IT outsourcing, I have seen that outsourcing can be an excellent way for businesses to save costs and focus on core competencies, but it can also lead to challenges that IT outsourcing companies face. One of the biggest challenges is retaining clients who may start working with an outsourcing company, only to end the partnership prematurely. In this article, I will explore some of the common reasons why clients stop working with IT outsourcing companies and how outsourcing providers can prevent it.

From my personal experience, I've highlighted 3 of them:

1) Lack of communication

Clients expect regular updates and progress reports from their outsourcing providers. If the communication is not open and transparent, it can lead to misunderstandings and misaligned expectations. As Peter Drucker famously said in his book "The Practice of Management," "The most important thing in communication is hearing what isn't said." To prevent this, outsourcing providers should listen to their client's concerns and provide regular updates to ensure that both parties are on the same page.

2) Lack of quality

Clients expect a high level of quality in their outsourced work, and if the outsourcing provider does not deliver, it can lead to dissatisfaction and the end of the partnership. As Drucker also said, "Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for." To prevent this, outsourcing providers must prioritize quality and have stringent quality control measures in place.

3) Cultural differences

If the outsourcing provider does not understand the client's culture, it can lead to misunderstandings and misaligned expectations. For example, the client may have different work hours, holidays, or work ethics, which can lead to confusion and frustration. It's essential to understand your client's culture and adapt your working style accordingly to prevent any cultural clashes.

IT outsourcing companies face the challenge of retaining clients. By prioritizing communication, quality, and cultural understanding, outsourcing providers can prevent premature endings of partnerships. Most of the responsibility lies on the management team. As Drucker said, "Management is doing things right; leadership is doing the right things." By implementing these strategies, outsourcing providers can lead their clients to success and build long-term partnerships