Outsourcing Plan: Why You Need It and How to Make It

The key component of every business is the ability to adapt. In order to build a successful business, one must monitor the needs of customers, partners, market, budget, company goals and standards and provide a win-win situation for all sides.

It’s a big responsibility and hardly managed on its own. As the business grows, so do its needs, but before you find yourself buried in work and anxiety, consider trying outsourcing as a way to keep things afloat.

Whether you run a small business or a big company, outsourcing allows you to keep up with the competition by giving a certain percent of work to a trained professional or other company for an affordable price. This way you can use the outside resources to reduce costs and implement innovations through great talent and professionals from across the globe. Also, with additional help, you will have the time to focus on the main functions of your business.

What to outsource

Almost any part of a business can be outsourced depending on necessity. There are two main outsourcing processes – BPO and KPO. Business Process Outsourcing (BPO) is a cost-effective way of outsourcing a portion of non-core or critical activities of the business to a third party. It includes a lot of fields, from money management, marketing development, data entry, to customer services, IT help, and online research.

What to outsource

On the other hand, Knowledge Processing Outsourcing (KPO) may not give financial benefits, but it helps in value. It is based on outsourcing the main (core) functions and requires knowledge of expertise – legal services, analytics, business and market research services, data conversion and others.

The most effective choice lies in outsourcing parts you can’t afford, or don’t need, only a few times a month:

  1. Professionals for bookkeeping and financial analysis
  2. Repetitive tasks – IT tech accounting, systems, network support, customer support, etc.

How to prepare

Don’t rush! The strategy is crucial for efficient outsourcing. To create a well-developed plan, first, you must thoroughly examine your business and set a clear goal. Retain the strong suits of the company; if something is working for you there is no need to change it. If you are running a small business, avoid outsourcing areas that directly impact customers.

Once you have established your main objectives and expectations, consult with your partners and/or an expert. Research and feedback can provide great suggestions for improvement. Complete market and risk analysis to be fully prepared for the possible outcome. Make a list of the criteria for quality, expertise and necessary costs for maintaining a standard you and your customers expect.

Other things to think about are pro and cons of outsourcing to freelancers vs. companies. The decision between the two depends on the type and quantity of work that needs to be done. With a good freelancer, projects can be innovative, precise and cost a lot less than a company would charge.

The problem is they are not always dependable and available all the time, whereas companies offer control quality and 24/7 availability. Even though it seems reasonable to pay more for consistency, remember that nothing is 100% secure. Bigger issues can occur when outsourcing offshore. It is harder to scale a small business with operational issues, delays, and unpredictable taxes. That’s why it’s important to know how to manage your remote workers.

How to choose

When it comes to choosing the right option for outsourcing, keep in mind that the responsibility is mutual. Don’t hire the first party you contact. There are a few factors to consider before making a deal:

  • Experience
  • Flexibility
  • Quality
  • Costs
  • Language barriers

To avoid mistakes, always check credentials and construct a solid contract with outlined specifics:

  • Clear expectations
  • Deadlines
  • Defined roles and rights
  • Exit strategy – termination or date of renewal
  • Payment

Communication is incredibly important, at every step of the way. Secure access to the latest technology for easier workflow and better results. Regular checkups and a common work platform ensure a more productive environment and lower the risk of delays and mistakes. So make sure you choose the right software solutions for your business.

What to avoid

Considering the time, we usually spend online, every layman can determine if there’s something wrong with a certain website. They can discover a hoax lurking behind the corner. Your professional expertise gives you, even more, experience in this area.

So, if your gut is telling you that there’s something is wrong with a company that you are considering making your temporary partner, don’t ignore the alarming signs. Minding your own safety is quite important when outsourcing, so you should take appropriate precautionary measures and protect yourself.

The best way to do so is to make a list of things you should check every time you get in touch with an unfamiliar business. First of all, you should pay attention to the URL – if there are any irregularities there, chances are you found a fraud.

Browsers like Chrome, Internet Explorer, Firefox and Safari can help you with this – when a website is legit, they give their approval by placing a green bar before the URL. Otherwise, you will be able to notice a red warning that states “not secure”.

Furthermore, you should do some private snooping. It’s quite common that businesses have a testimonial section that quotes customers and businesses they’ve worked for in the past. If you want to be sure that a certain company is legit, you should simply get in touch with listed names and ask for their opinion.

Finally, the last item on your checklist should be social platforms. Primarily, if a business you’re evaluating doesn’t have accounts on social networks, there must be something wrong with it – every serious company is active on them.

However, if you find links that lead to profiles, it will be simple to spot if a business is legit. Both satisfied and unsatisfied users don’t hesitate when leaving their comments and rates, so after only a couple of minutes of scrolling, you’ll be able to know what to expect.

Conclusion

Overall, outsourcing is an excellent aid for expanding a business. Although it comes with some risk, the reward is a lot higher, if properly executed. The only question is: “Do you want to add outsourcing to your operational plan?”

Catherine Park
Catherine Park is a professional Content Writer and a blogger with full of energy and positivism. She is expert in writing exclusive contents on business and technologies that are helpful for large enterprises, SMEs and business startups. Follow her on Facebook and Twitter.
Catherine Park

Latest posts by Catherine Park (see all)

Let's be inbox friends!

Let's be inbox friends!

Drop us your email to receive a weekly digest of our latest blog posts right in your inbox.

To confirm your subscription, please check your email.