Outsourcing has become a powerful solution to help businesses keep their focus at the core of their competencies. With the rise of outsourcing companies, it has also become very easy and convenient to outsource tasks to save costs and improve productivity.В 

Outsourcing providers specialize in matching professionals to businesses that do not necessarily have all the resources for specific tasks in place internally. These providers are positioning themselves as experts in different fields and have all the processes in place to ensure seamless integration of outsourced teams into current business workflows.

Why do businesses outsource?В 

There are several reasons why businesses outsource. Some of these include:В 

• Control over costs. Lower labor and operational costs are one of the primary reasons why businesses choose to outsource. When accurately executed it has a major impact on revenue recognition and can produce significant savings.

• Easy scaling. Outsourcing allows businesses to hire and pay for services when needed. This avoids making major investments in infrastructure, software, and personnel.

• Access to skilled workers. Outsourcing enables businesses to tap into and leverage a global pool of skilled and knowledgeable workers with world-class capabilities. This means that work is done in a much more efficient and diligent manner. The cost of hiring employees with the same level of expertise in a business’s native country could be very high.

• Access to more and better resources. Businesses often get stranded with internal resource crutches. Outsourcing can be beneficial to gain access to resources not available internally.

• No training and recruitment requirements. Most outsourcing service providers take care of recruitment and training, allowing businesses to focus on outsourcing tasks successfully rather than spending money on finding recruits.

• Saving time. Businesses can use outsourcing to continue to focus on core processes while delegating time-consuming processes to external workers.

How to outsource effectively?

There are specific steps to follow when deciding to enter into an outsourcing partnership. These include:В 

• Defining the scope and schedule. Any successful outsourced project starts with a clear statement of what a business is hoping to achieve. Therefore, it is important to define project requirements upfront. Outsourcing providers want accurate, complete information to present realistic proposals. It is key to be specific about any deliverables expected from the vendor. Also, be realistic about any schedule requirements as this can have a major impact on project expectations and costs.

• Identifying the skill sets required. Once a business’s requirements are defined, it is necessary to set out the skill sets needed to perform tasks. This is a crucial step because it can determine the success of completing tasks and projects. The skill sets and expertise must be clearly communicated to the outsourcing provider. This will give the provider a good idea of which professionals to source and employ for the task.

• Identifying possible candidates. When outsourcing, businesses have access to a large talent pool. This can make choosing the right candidates a tricky task. It can be beneficial to shortlist candidates and see how they match specific requirements. It can also be advantageous to give candidates a specific test task to determine their quality of work and how quickly they can complete assignments.

• Evaluating candidates. Once possible candidates have been identified, it is time to schedule interviews and evaluate their experience. It is important to take note of how their background, knowledge and skills will apply to a specific industry. It is also crucial to consider candidates communication style, goals and work ethic to ensure it matches specific business aims.

• Ensuring successful onboarding. During this process, businesses have to carefully communicate which tasks need to be completed by who and what the deadline is for each task. Additionally, it is essential to inform outsourced workers about the team culture and what is expected during the work contract. This will help to avoid miscommunication in the future.

When someone is working for a business, they need access to relevant materials to get certain tasks done. This may include access to a business’s IT system. When the necessary background checks and references have been obtained, businesses should be able to trust outsourced workers with this information.

• Establishing strong communication channels. Businesses must operate transparently and responsively. Therefore, appropriate and accessible communication channels must be established, while remaining flexible enough to adjust to employee needs.

• Measuring effectiveness. To determine the effectiveness of the outsourcing process, businesses should conduct a regular review. During this review, they can assess the quality of the work carried out and consider customer feedback.

• Offering frequent feedback. Outsourced workers can only improve if they know how. Therefore, businesses must provide regular feedback and work alongside the outsourced services provider to improve in all aspects of the partnership.

Best practices to follow with an outsourcing partnership

When done right, outsourcing can yield excellent results for businesses. To ensure a successful partnership, below are the best practices to consider when outsourcing:

• Present well-defined requirements. Not only do requirements have to be carefully spelled out, but common procedures and terminology need to be established so that different parties can work effectively together.

• Be very specific about deadlines. Be detailed and specific when explaining deadlines for the project. Break them down into smaller, more manageable tasks and have deadlines for each of them to keep the entire team on schedule.

• Regularly check in with teams. The way employees perform heavily depends on the support and feedback they receive. That’s why it’s so important to take the time to check in with them. There should be regular meetings, both one-on-one and in groups, to identify issues and challenges and to determine what kind of support employees require.

• Set intermediary milestones to review. Milestones and smaller goals should be established for the complete lifecycle of the project. This is key to help with keeping better track of what has been achieved and what still needs to be done. It is also important to catch any mistakes and omissions early on.

• Communicate effectively at all times. Communicating can be troublesome, especially with foreign providers. Therefore, extra care has to be taken to ensure that expectations are well understood. Do not hide behind emails and instant messages. Get on a call, especially when onboarding new people or kicking off a major task or project.

• Accommodate cultural differences. Ways of working, workplace norms and cultural holidays can lead to communication issues and conflict. It is, therefore, important to identify these differences early on and find ways to accommodate everyone’s needs.

Going forward: Outsourcing as a model for success

Outsourcing can indeed lower costs for businesses by reducing the expenses associated with bringing on new staff and resources. Some of these expenses include a hiring search, onboarding and training, healthcare and payroll taxes, and hiring more workers in management and HR positions. But while businesses think about outsourcing mainly as a cost-saving method, it can do much more than just lower expenses. As a business grows, outsourcing can be a way to boost innovation, disrupt certain industries and gain access to new skill sets that reposition the business in the market.

With the overwhelming benefits associated with outsourcing, it is difficult to deny the popularity of using outsourcing providers. Outsourcing goes beyond cost-cutting and has become a successful business model in itself.В