Tips for Successful Outsourcing

Outsourcing a project to a third party has become a strategic tool for business operations. Companies are looking for better ways to manage workflow, as well as increasing productivity. Outsourcing offers cost-effective solutions, team expansion, and the ability to manage peaks in workflow. More importantly, it provides small to mid-sized businesses with alternative solutions that support running a business with ease as opposed to reacting to what can be unexpected stressful situations.

Benefits of Outsourcing

• Team expansion – add additional resources and skills to the team without heavy investment and risk
• Cost-effectiveness – outsourcing can be provided on a scalable basis making it an affordable option
• Enhanced productivity – better manage workflow by having additional resources and manpower on hand
• Business development – allows business owners to shift focus away from operational issues to other aspects of the business, such as growing the customer base

5 Steps to Prepare Your Operations for Outsourcing

Steps involved in outsourcing

1. List services you need to outsource

There are many services you can outsource to support your business operations. From data entry to accounting and bookkeeping, many companies offer these services at reasonable rates.

If you have time-consuming tasks that shift your focus away from growing your business, consider outsourcing them.

Services to evaluate for outsourcing:

• • Administrative tasks
  • Data entry
  • Accounting roles
  • Bookkeeping services
  • Software development
  • Customer support 

2. Research outsourcing partner options

There are many firms offering outsourcing solutions that have a reputation for meeting clients’ end-to-end needs.

Try to identify companies which provide services to an organization that is similar to yours. This will help narrow the search and better understand capabilities offered by outsourcing providers.

Research process

• • Review areas to outsource
  • Find relevant outsourcing firms
  • Request referrals and recommendations from peers

Outsourcing Tips

• • Choose a company that has many available resources
  • Look for companies that adhere to and comply with industry rules and regulations

3. Reach out to the firms that best align with needs

Once you have identified a few potential outsourcing providers and compiled a list of functions to outsource, you should begin drafting your requirements. This can be time consuming but it is an important step to ensure your needs align with the capabilities of the provider under consideration. Take the time to comprehensively evaluate the providers by scheduling calls, meetings, and demos to understand their capabilities and philosophy.

Points to remember – Checklist for Outsourcing

• • Establish requirements and “must haves”
  • Stay focused on aligning your needs with their capabilities
  • Request break down of costs
  • Ensure potential partners understand the importance of projects and deadlines
  • Discuss business agreements, such as Non-disclosure Agreements (NDA)

4. Compare services and business practices of providers

Once you begin receiving quotes, analyze and compare each of them. This will provide a better understanding of the charges and services you will receive. This is an essential step to ensure the right company fit.

Key focus areas

• • Pricing for services
  • Project management system
  • Success rate of previous projects
  • Client retention rate

5. Select your Strategic Outsourcing Partner

Once you analyze and compare offerings, you may have a few providers who rise to the top of your list. The goal is so select a provider who most closely aligns with your needs. Consider the points below to ensure you’ve selected the most appropriate provider.

 Checklist for Outsourcing

• • Highly experienced
  • Skilled professionals with additional resources
  • Transparency
  • Successful track record based on portfolio and case studies
  • Compelling customer testimonials
  • Security and guarantee

Outsourcing Tips

• • Choose a company that offers resources on a rotational shift
  • Confirm that resources have established communication protocol
  • Request that outsourcing partner provide time recap for resources allotted to your business

Additionally, outsourcing often involves sharing data with the selected partner. Data integrity and confidentiality cannot be compromised on any level, so make sure to carefully evaluate a prospective partner’s data security practices as well.

Following the outlined suggestions as a guidance for selecting an outsourcing partner should help you navigate the process in selecting a company that offers high quality services at a reasonable price.

Essential points to keep in mind while outsourcing work

• • Trust your outsourcing partner
  • Ensure and request maximum security when sharing business data
  • Consider using offshore resources
  • Review resources timesheets every week
  • Ensure there are no hidden charges
  • Stay updated on the project timeline

Summary

Outsourcing helps you to streamline the business process and gives you access to resources with a high level of experience. Outsourced partners work effectively and efficiently so you can turn your focus towards business development activities. Before considering a large outsourcing project, start small and track progress and results. This will help you to understand the quality of work provided by the outsourcing firms.

Next Steps

• Do you want to learn more about outsourcing opportunities and how they can positively impact your business? Get in touch with us today and speak to an expert.
• Email us at sales@analytix.com or call us at 781.503.9002 today.
• Follow our blog for industry trends and the latest updates.
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Written by

Analytix Editorial Team