In the rapidly changing business environment of the 21st century, wise companies understand that in order to survive and thrive, they have to cut cost while remaining competitive. Increasingly, businesses of all shapes and sizes are turning to outsourcing to remain at the top of their industries.
Knowing when it’s the right time to outsource can nonetheless be challenging. CEOs of major firms and owners of small family businesses alike are confronted with the challenge of outsourcing at the right time, and often don’t know where to turn to for advice. So when’s the right time to outsource, and how can companies go about efficiently doing it?
Know your wants from your needs
The first question company leaders and managers should be asking themselves is whether outsourcing is a want, rather than a need. Outsourcing has the potential to significantly cut down on your operational cost, but only when done correctly and, more critically, at the right time.
What are your company’s strong suits, and what are its weaknesses? Where have you been hemorrhaging money, and what steps can you take to optimize your performance? Only after these questions have been asked and answered honestly can your company head towards successful outsourcing.
One PwC study found that outsourcing saved 35% on payroll cost and 50% of human resources cost. While all companies are unique, and the results of one outsourcing shouldn’t be spread across all businesses, outsourcing can certainly help companies when practiced appropriately.
If a specific activity done by your company is mundane and repetitive, such as cold-calling customers to solicit feedback or entering large quantities of data, outsourcing could stand to benefit your operations greatly. Companies should always consider the cost when making a decision to outsource; if accomplishing one of your goals is more expensive when done in-house versus when it’s outsourced, it may be the time to look elsewhere to get things done cheaper.
Business decision makers shouldn’t only consider outsourcing for simpler task, however. Since it’s so easy to get a Vietnam visa you can find someone with highly specialized skills that your employees lack the necessary qualifications to accomplish could be outsourced, too, potentially expanding the scope of your business’ reach.
Keep your standards high
No business should ever sacrifice its professional standards just to save a few bucks. Coming to the conclusion that you need to outsource too hastily could end up costing you more money in the long run, so managers much be sure to do their homework before making a decision.
All outsourcing necessarily means the loss of some control, as you won’t be able to directly supervise operations occurring at an outside, distant site. While outsourcing can do wonders for your business when it comes to cutting cost, you need to be sure that your company’s products or services won’t suffer because of it.
Finding a compatible partner who shares your business vision and maintains constant, open lines of communication is critical for successful outsourcing. Don’t just run to whoever is offering you the cheapest services; doing your homework ahead of time and extensively researching your options will ensure your outsourcing is as successful as possible.
Senior company managers should carefully review their outsourcing contracts before signing, and ensure they’re up to snuff with your standards and morals. Regular meetings, or at the very least constant digital communication, can help you keep an eye on your outsourced operations while still saving you both time and money.
Find your niche, and stick to it
It goes without saying that your company shouldn’t be outsourcing the production of its primary products or services, but it can be easy to let smaller task slip through the cracks and fall to outside-hires. It’s imperative that your business focuses on your primary service or product while letting outsourcing take care of the minor details or mundane side-projects.
Some businesses may have task that only need to be done once or a few times per year. These kinds of jobs are perfect for outsourcing, as they will no longer distract your valued employees and clog up the works of your company’s primary operations.
America’s independent workforce is growing at a staggeringly rapid rate. Exploit market changes like this by relying on outside hires for task you’re not specialized in, leaving it to a pro you can count on. In time, you may come to develop close relationships with the partners you outsource with, and discover new opportunities to cut cost while delivering a better product.
It’s never easy deciding when to outsource, but savvy business executives and local shop owners alike must cut cost whenever and wherever possible. In today’s digital world, few companies are truly independent of others, and those who rise to the top of their respective industries often do so through savvy outsourcing. Take the necessary steps now to ensure your company thrives well into the future, and start doing your outsourcing homework as soon as possible.
Graeme Risby is a social entrepreneur and a strong believer in using people-to-people networks through the use of technology toimprove people’s lives.Think locally and impact globally – building community through business. his UK-based company, Hiyacar, has been described as the Airbnb for cars with all the insurance barriers overcome, matching car hirers with car owners and changing the way we use our vehicles forever. The business is specially focused on working with the elderly and disabled to provide more mobility to those most in need.