Outsourcing is a great way to complete tasks and grow your business, which makes deciding to incorporate it into your strategy a straightforward no-brainer. The next bit of news? Choosing an outsourcing provider won’t be as easy as making the decision to outsource in the first place.
It’s an important decision that will require careful consideration, which can be tough for leaders with a workload that already demands a fair bit of their time. Choosing the wrong vendor can set you up for difficulties down the line. That’s the last thing you want from a growth model that’s intended to streamline your workflow. You need more than a provider – you need a partner.
Hiring an overseas workforce to outsource business functions? Expect benefits like:
- Lower overheads
- Focus on core business activities
- Better service quality
- Faster growth
- Ongoing innovation
All in all, it’s a win-win for your business. The thing is, not all outsourcing service providers are the right fit for your projects. For example, a provider specializing in staff augmentation cannot handle digital marketing engagement. Always select the right outsourcing partner and the right outsourcing engagement. This will bring long-term business success.
The right choice can drive competitive advantage. But in an industry with a global market size of $92.5 billion, that’s easier said than done. That’s why due diligence is necessary. Find outsourcing partners that cater to your segment and have the necessary expertise and resources.
In outsourcing, as in most industries, there’s just no substitute for experience. Work with a company that can provide proof of a positive track record and a roster of satisfied clients. More than anything else, this experience will bring you the peace of mind you need to get started right away. You’ll know that you’re in good hands from the very start of the partnership.
It’s critical to find a provider that has worked to maintain legacy partnerships. This is the time to look to others for guidance – even a single client that’s chosen to remain with the outsourcer for a decade or more is an excellent sign. It helps build the trust that’s necessary for you to move forward. Look for testimonials, quotes and case studies, and ask for referrals.
Beware though – just as a company that can’t provide a single client referral is a bad sign, one that hands over client information without facilitating an introduction first may be an indication of poor boundaries around client privacy.
Staying in-tune this way from day one keeps everyone mutually emotionally invested. You won’t just be ticking boxes or making deadlines this way – you’ll be working toward a common goal and constantly improving in tandem.
Costs and Expenses
59 percent of business leaders do not consider cost the main driver for outsourcing. Their main priority is to focus on core business aspects and solve issues with capacity.
But saving money is still a priority. Nearly 45 percent of businesses outsourcing IT rely on outsourcing to save money. Also, 46 percent claim outsourcing helps them access skill sets not available in-house.
Tech and marketing firms normally benefit from outsourcing due to reduced costs. Work that is outsourced ends up in third-world countries with an education population. Outsourcing professionals charge less than first-world counterparts. Rates are paid hourly or by the task, based on the conditions agreed upon by both parties.
If you’re not familiar with Fiverr, it’s a marketplace that allows you to outsource simple tasks for your business for $5. Since the price point is so low, the tasks are generally pretty simple.
For instance, maybe you want to make some quick logo changes, but don’t want to hire an expensive design team? Maybe you want to create a pop-up for your website that matches your existing design? Or maybe you’re in need of some technical things cleaned up across the backend of your site?
Hiring Is Still Hiring
Whenever you need something done to your website, you have to spend time finding the right person, reading their reviews, ordering the work, and giving them enough information to ensure they can complete the task.
Sounds like a headache, right? Then you have to manage requests and make revisions, if that’s part of the scope. Sometimes you’ll be unsatisfied and have to hire another freelancer altogether.
Evaluate The Quality Of Outsourced Talent When Choosing an Outsourcing Provider
There’s a piece of conventional wisdom in the construction industry: a builder is only as good as the contractors it hires. The same is absolutely true of the outsourcing industry. Your provider is only as good as the talent it employs.
Ask potential vendors how they find top talent in your function and industry and find out their recruiting and hiring process. While you’re at it, look at their company and employee profiles on LinkedIn and ask for the bios of top managers and leadership to make sure their backgrounds will work well with your business.
Find out About Infrastructure and Technology
If you’re looking for a finance and accounting outsourcing provider, ask whether or not they’re “technology-agnostic”. Providers that are won’t require you to confine yourself to proprietary software and can work within your existing ERP. That’s especially important if one of your outsourcing goals is cost containment. Your money is much better spent on growth initiatives than on costly data migrations that you wouldn’t otherwise be pursuing.
Visit the Facility When You’re Choosing Between Outsourcing Providers
Although it’s a time investment to travel to the outsourcing site, especially if they are offshore, the perspective you get from being there, seeing the employees and the processes at work is priceless. It will also put you at ease knowing just where your program will be carried out.
These visits give you a chance to actually get to know the people that you’ll be working with. The best outsourcing provider is one that functions as an extension of your existing team, not an entirely separate agency. Don’t miss the opportunity to put faces to names and make sure that you’re completely aligned – you won’t regret it.
