Should You Outsource Your Business?
There are specific scenarios in business when certain functions are required but employing in-house professionals may not be feasible –whether monetary or otherwise – and this is where business outsourcing can prove instrumental.
As a core component of business strategy, outsourcing to an external provider takes the daunting task of recruiting, training and maintaining a company’s in-house functions off a company’s hand and transfers it to a third-party provider, thus allowing the company to focus on and carry out other business assets that need attention.
While the right business outsourcing vendor can bring invaluable benefits to businesses, hiring the wrong one can be disastrous. Therefore, it’s imperative to know when to outsource and how to outsource the right way.
Under these circumstances, it may be worth considering an agency to outsource tasks to:
• A function, skill or responsibility is needed but it isn’t your primary source of profit
• Carrying out such function takes tremendous amount of effort, time and other resources; if you feel that those resources can be used elsewhere
• The task is periodic or routinary
• Because it isn’t routine work, employing in-house professionals can be costly versus just having it done by an external provider
• Specialized skills are needed to get the job done and it’s simply impractical for you to contract an employee for such
• The task is not something any of your team members know how to do
Business outsourcing impacts your bottom line. Therefore, when looking for a vendor to outsource to, consider these tips.
Nothing beats knowing your business is in the right hands. Solicit suggestions and referrals from similar companies in your industry. Look at the history and experience of recommended outsourcing firms, and be sure to have personal communications before hiring.
• Choose a company that’s proven to understand and commit.
Compatibility is crucial when working with any business. You want to choose an agency that knows exactly what you need and how to implement them effectively – and has a proven track record to back it up. The company must be efficient, flexible and committed to doing whatever it takes to get you the results you need.
• Set terms and expectations.
Because you are essentially shifting certain aspects of your business to someone else, it’s important to establish expectations. These expectations, along with specific responsibilities and performance-based standards or metrics must be clearly outlined in a contract. Make sure to evaluate performance regularly too so that you know if the vendor’s performance is up to par.
• Make sure the vendor is available for routine and emergency meetings.
Routine meetings are a must in order to discuss project progress and address challenges as they occur. By keeping track of these, issues can be prevented down the road. Records must be provided by the business outsourcing agency so that you can monitor performance and progress better.
In the case of emergencies, your provider must have contact mediums in place such as cell numbers and Skype. How and when communications between the two parties should be done must be outlined in the contract.
Business outsourcing can be a wonderful strategic tool for any business. Be it for accounting, web maintenance or technical support, it allows you to manage your resources more effectively – if you know how to leverage it. Contact our team today for a free consult on how we can help manage your outsourcing needs.