5 Things To Consider When Outsourcing Part 1
So you’ve decided to consider outsourcing for your business. It’s an exciting time for you and your company as you take a major step in becoming more competitive and globalized in today’s fast paced business environment. You’re looking at different providers to partner with and what services they have to offer.
The Challenges Ahead When You Consider Outsourcing
Of course, there are also major challenges to consider before considering outsourcing services. No business model is a perfect one and outsourcing is certainly not without its challenges. A successful outsourcing experience not only means finding the best service provider or determining the right strategy. There are other factors involved that companies should be aware of before they make the decision to outsource. Working with a team that isn’t based locally has a unique set of hurdles and rewards.
Here are just a few things to consider when you are looking to outsource.
Quality of work
When discussing outsourcing, the quality of work produced is often immediately brought up. Many businesses today turn to outsourcing when they need skilled labor at a reduced cost. No longer just relegated to customer service roles, a wider range of roles can be outsourced that produce quality results.
Because of this, companies have seen an increase in the quality of work of functions they have outsourced. Coupled together with the affordable cost and you can see why outsourcing continues to be viable. Though some will say you “get what you pay for” with outsourcing, this can easily be remedied by collaborating with a strong service provider.
On paper, outsourcing does bring plenty of benefits to your company. However, it also is not something that fixes everything at the drop of the hat. Like any good business strategy, proper implementation of an outsourcing strategy takes time. Even with the most talented people onboard with you, their abilities are limited to what you ask of them and the timetable for completion.
There are also some nuances to consider – whether social or cultural – when partnered with outsourced team. However, with enough patience and the right expectations set, companies can expect to benefit from outsourcing in both the short and long run.
What has made companies consider outsourcing is the evolution of communications technologies that allow for teams all over the world to communicate in real time. The prevailing use of apps like Skype lets companies stay updated on any emerging changes going on with their outsourced team right away. Despite particular timezone differences, teams can stay updated with each other through constant communication and project management sites like Asana and Trello.
Communication with an outsourced team is also not limited to what programs teams use. Language used also plays a part, especially when it comes to addressing cultural sensitivities. What may sound normal behavior for one side may have different definitions for the other. With the help of an outsourcing provider, companies can sync up with their teams and get everyone on the same page.
Staff morale and Engagement
One thing to always consider is how an outsourced project affects the morale of your local team. Though an effective cost-saving measure, outsourcing still means sending tasks for other teams to work on. It falls on the company to explain why particular projects are being outsourced. With a deeper understanding of your goals, local staff will see why certain decisions had to be made.
It’s true that some of these decisions may not be popular among some employees. However, it’s important they are kept in the loop and not have to learn about it from an outside source.
When companies consider outsourcing, they need to also think of existing infrastructure and how it relates to your operations. As part of due diligence checks, companies need to be aware of their ISP’s capacities. In countries like the Philippines, there are some regions where Internet speeds are much faster and more reliable that other locations. This is why many businesses that choose to outsource look to Metro Manila for all their infrastructure needs.
So Why Consider Outsourcing?
Outsourcing is indeed a proven, effective strategy in today’s current business landscape. Not only is it a cost-saving approach, the quality of work you can expect is nearly similar – sometimes better – than what you would get locally. It continues to become more accepted globally, with more industries considering it to stay competitive.
Your due diligence when deciding to partner with an outsourcing provider should include the considerations listed here. In doing so, you not only ensure a smoother transition into an outsourcing strategy, but also reducing potential risks and issues you may encounter.
If you’re looking to get started on your outsourcing journey, feel free to contact us today.