How To Make Outsourcing Work

In this blog, OrangeIQ will tell you how to make outsourcing work. That is to say, it can either be a big advantage or a big drag for your business. One common question that arises is: how can you ensure outsourcing is working for you and not becoming a weak link or a constant distraction? Outsourcing has the genuine potential to propel your business forward. While there is no magic formula, these strategies for how to make outsourcing work will increase your chances of success.

Below are some things to keep in mind if you are wondering how to make outsourcing work:

• Understand Why You Are Outsourcing

If your question is how to make outsourcing work, you first need to understand why you are outsourcing. Is it to save money? Is it to build more flexibility into your business? To add value for your clients? To gain specialist expertise? For convenience? To help your business grow? If it is one of these or more than one of these, then you are on the right path!

That is to say, knowing your motivation is an important first step, and it gives you an idea of what success will look like. If your only motivation is to save money, you need to be careful as it can become a dangerous trap. You may be saving money, but are you driving your business forward? As a result, understanding why you are outsourcing provides clarity later on and the correct parameters to measure success.

• Watch The Price Trap

There are things that you should avoid when outsourcing. One such thing is choosing providers based on price rather than the service they provide. That is to say, it is one of the biggest mistakes one can make. When choosing by price, service can become a bigger issue down the road. It is similar to buying a cheap pair of shoes that soon fall apart. Choosing the cheapest supplier is a false economy and can often end up costing more in the long run.

• Remember The Human Factor

In addition to the above, the human factor is essential as well. It is the glue in any outsourced relationship, just as it is with your employees. Do you have any company traditions? Do you like the person or people you are about to engage with? That is to say, business is best when you are working alongside people you like. Naturally, they need to be skilled as well, but approach outsourcing like you would when hiring new employees. That is to say, the similarities are strong.

Just like assessing potential employees, you will have certain business philosophies and standards. As a result, you should be patient and prepared to consider various options. In addition, try and find out some more about your suitors as people; find out what makes them tick. If they are genuinely keen, they won’t mind meeting a few times, and they won’t mind starting small or on a trial basis.

• Measure Your Success

Measuring outsourcing’s impact can be done in many ways. That is to say, taking liabilities off the balance sheet is great, but there is more to the picture. It is best to have a few key parameters in mind before the relationship starts so both parties know what they are working towards. Measurement traps include imposing unrealistic wishes and dreams onto your supplier, moving the goalposts later on, not communicating with your supplier and being inflexible about what the relationship should deliver. It is easy to be unrealistic about services in which you lack expertise.

An open-minded approach may help you discover benefits you had not considered beforehand. These benefits will often be beyond costs, such as more flexibility, happier staff members, better customer service, better responsiveness, and improved product delivery. That is to say, anything that helps make you a better business.

When wondering how to make outsourcing work, there are a lot of things that one needs to keep in mind. We have provided some of these above, and we hope that they help you during your next outsourced project.