Outsourcing has become an intricate part of various business processes. In service industry, there has been a pronounced shift in the direction of after-sales support outsourcing. Today, manufacturers, suppliers and retailers believe that outsourcing after-sales service helps them slash overhead costs, streamline service management, and sharpen their focus on competencies which are core to them.

• Increased chances of pilferage- While outsourcing your after-sales may help you reduce the operational issues relating to managing the service centers; it also increases the chances of pilferages on the flip side. The reduced intermediate handling may increase the chances of irrelevant service and part claims, which may inadvertently lead to mis-management of inventory and loss of revenue. In this case, the very purpose of outsourcing, i.e., to reduce costs become void.
• Risk of non-compliance of regulatory terms and conditions- Since the service centers work on their own models and regulations, it may be difficult to streamline your business processes with theirs. For example, if you are a mobile handset manufacturer and have outsourced the after-sales to the service partner who does not follow any automation process for streamlining repair calls. The absence of information regarding handset’s repair status may lead to increased TAT (turn-around-time) and customer dissatisfaction.
• Discontent with the automation solution used by your service partner- Some service providers use a service management solution that may not offer the results that you seek from your after-sales process; while some service providers may not use any automation technique at all. This may lead to information loss, which could have otherwise been possible from a self-owned automation process.
• Outsourcing Only to Subject Matter Experts- There are service providers that carry proficiency in servicing multiple products. It is always a safe bet to outsource to companies that have proven expertise in servicing product/equipment that you deal in. For example, for a cell phone manufacturer, selecting a specialized electronics service center as the outsourcing partner may not be able to give you the desired results. A dedicated mobile handset service center that specializes in troubleshooting the defects, and knows the nitty-gritty of the mobile repair would be more effective.