Main Pitfalls When Managing a Service Business and Ways to Overcome Them
Our team conducted brief research and figured out 5 top difficulties companies face when managing service businesses. Business owners want to set up smooth processes at all stages, one day they may face challenges related to service business management. Let’s dive into it and figure out key pitfalls.
Building trust
The issue of trust is a serious obstacle that arises between a client and a service provider. When managing an outsourcing company, it is crucial to know your customers so that your cooperation does not break your back and you do not lose your money. Building trust takes a lot when the developers from one company are halfway around the world.
Therefore, they need to know whether the outsourcing company complies with regulations. To provide your customers with great insights into your expertise and strategy, you need to present the documents or agreements before collaboration starts. This not only reduces the risk of breaking a deal but also prevents any misunderstandings as all conditions are written out in the contracts.
For example, service level agreement (SLA) contains a description of the services, rights and obligations for both parties as well as a procedure algorithm and how the entire process is occurring. The more you help your customer find out project details, the more likely you can deliver a product that meets the customer’s expectations.
Keeping a well-designed workflow
Frequently, project management is unsystematic. If a project requires large-scale investments and active teamwork, it is more difficult to run it effectively. Therefore, the customer and service provider should understand the process at each level. It means that each working stage must be analyzed, estimated and thoroughly planned.
A well-designed workflow improves the accuracy of tasks performance and encourages employees to work more productively. To help the team optimize project management you need to provide the necessary information and materials.
A unified project management system allows you to manage risks and responsibilities. By leading projects in real-time, you have a clear picture of how the process goes and what tasks are assigned to each employee.
Managing working materials
Competent management is especially essential for processes such as design, software development, or engineering, where issues related to document organization can cause considerable delays and entail additional money losses. Usually, outsourcing teams use several applications to organize the process. However, they make a big mistake and here is why.
Managing working files with multiple tools slows down the process and leads to delivery delays. While working in the same cloud, you can provide numerous employees with one access to needed materials simultaneously. Firstly, storing a document in a shared repository allows everyone to collaborate without creating multiple copies.
Secondly, thanks to common access, you can make edits together with other team members. Finally, you do not need to download additional copies of documents to your computer in order to share them with other users each time.
Cultural issues
As a rule, the outsourcing team consists of people with different cultural values and customs. It is difficult to manage a team with business ethics since each employee has his or her own project development strategy. Some outsourcing companies are more straightforward in communicating with customers while others are more client-oriented and meet halfway regardless of the project complexity. One way or another, all these factors affect the development process and you, as a business leader, need to take it into account.
Use one system to manage a business like the Avanga BPA system so that all employees get common access to the scope.
Transparent time tracking
A transparent time tracking system is key for outsourcing, as it facilitates a fair payment for work performed. Manual project estimation can lead to many inaccuracies and miscalculations. However, the team needs to keep abreast of the project progress. Thus, each member knows its list of tasks, meets deadlines and can bill the client for services correctly.
By automating the process, the outsourcing team can provide transparent service payment. Moreover, it helps estimate how much time analytics, design, frontend, the backend will take, as well as distribute labour resources, etc.
We have had more than ten years of experience with different companies. If you are looking for an outsourcing team that will embody your business idea into life — we are ready to help. You can get feedback at Clutch.co to learn more about our outsourcing team.
