Things To Consider Before Outsourcing

In this blog, OrangeIQ will tell you about things to consider before outsourcing. That is to say, business is now tougher than ever, trying to stay afloat in a continuously evolving environment while searching for ways to remain competitive. One of the quickest and most efficient strategies business owners look at is outsourcing: the practise of engaging with a company to do your company’s functions. These functions are mostly non-core business functions like admin tasks, customer support, marketing, and bookkeeping. It sounds easy and can be a viable option for business. But, whilst it may be true that any business can outsource, not all are necessarily ready.

Are You Ready To Outsource?

On the list of things to consider before outsourcing, the first question that comes up is: are you ready to outsource? How do you know if your business is ready to outsource? Most will tell you all about the benefits of cost savings, but there are many other areas to consider. Here are a few items to bear in mind when evaluating whether your business is outsourcing-ready:

• The Level Of Involvement You Wish To Have

Handing over tasks that you usually take care of can cause anxiety, as you worry if your outsourced team can do as good a job as you. That is to say, it is important to determine the level of involvement you wish to have. You need to set expectations with the service provider as to who is in charge of what. Are you going to train the team yourself or leave it to their management? Are there certain areas that you will still want to sign off on? These checkpoints and boundaries are crucial to setting from the start, to allow the outsourced team the freedom to take care of things on their own so you can get back to growing your business.

• Your Goals For Outsourcing Your Functions

The next item on the list of things to consider before outsourcing is your purpose. You have decided to outsource your work, but what is your purpose for it? You should consider both short-term and long-term objectives. For example, your short-term goals might simply be looking to add extra manpower to finish off a project. In addition to that, your long-term goals allow you to look at how efficiently your operations perform or the quality of service you provide to customers. Both options should be analysed and documented from the start.

• The Outsourcing Model Suitable For Your Business And Your Goals

Now that you have identified your goals and the sort of involvement you want to put in, it is time to check out an outsourcing model that suits you. Here are some of the most common models that outsourcing partners offer to businesses:

• Seat Leasing

This is recommended for business owners who want to monitor everything closely. These BPO companies simply source people for you. You will provide the necessary training and ongoing staff management. BPOs will be in charge of their physical equipment, payroll, and other HR policies. That is to say, this is an extension of your business office, just located elsewhere.

• Fully Managed Team

For business owners who want more than cost savings and who are looking to achieve goals such as a higher quality of service for customers, a fully-managed service might be more appropriate. BPO companies source staff and provide all the training, support, and development led by a manager who, in turn, works closely with you. This requires very minimal supervision from you, allowing you to focus on other key areas of your business.

• Plug-And-Play Solutions

Your business tasks are performed by a pool of shared resources who specialise in these functions. This is an extremely cost-effective model as there are no long term contracts and pricing is result-based.

• The Outsourced Service Provider
  This is the final item on your list of things to consider before outsourcing. Here the real research starts. You have to search for the right outsourced service provider. That is to say, preparing yourself and your business for outsourcing requires patience and thorough evaluation. It is a big step, and as a result, there is a long list of things to consider before outsourcing. Once you have decided it is time to outsource and have done your homework, it is not time to reap the benefits.