Did you know that 59% of businesses outsource some of their workloads?
Most businesses that outsource work state that their main reason to do so is to reduce costs. Other reasons for outsourcing work include saving time, focusing on the more important tasks in the business, and increasing productivity.
Read on to discover more about business outsourcing, including what it is and how to do it effectively with our top tips.
What Is Business Outsourcing?
Business outsourcing is where a business subcontracts business operations to other companies or freelancers, also known as third-party vendors. Any business with a need to do so can outsource work, from small start-ups to large corporations.
There are two main categories when it comes to outsourcing business functions, which is the front office and back office.
Front office outsourcing refers to customer service related help, such as sales, marketing, or tech support. Whereas back office refers to core business tasks, such as accounting, IT services, human resources, and quality assurance.
Outsourcing: Top 5 Tips for Success
When it comes to how to outsource or what to outsource, this depends on the individual business and its needs.
Some businesses, such as start-ups choose to outsource most of their work because they don’t have an in-house team to help them with business tasks. Whereas a large organization might have in-house teams for every business need, but they might outsource work if they need a new perspective or extra help on a project.
However, we do have some useful tips to ensure your outsourcing is a success:
1. Work Out What You Need to Outsource
The very first thing you need to do is work out what you need to outsource. What do you need help with? Make a list of everything that needs to be completed and then work out whether you have the time, resources, or energy to do it yourself or if you should outsource it.
For example, if you run a small business selling clothes then you might focus your efforts on communicating with suppliers and helping customers. Numbers might not be your thing, or maybe you haven’t a clue about taxes, so you might go for outsourced accounting to accounovation.com and save yourself the hassle.
Once you have the list, you need to create your goals and plans for the things you want to outsource. If you want someone to handle your customers concerns, you can try outsourcing to the Philippines where agents are well-trained in customer support whether through chats, emails, or calls.
2. Find Your Help
Then you need to find someone who can help you with your work. You might decide to use referrals for companies or freelancers from business partners or other businesses. Ask people you know for recommendations about the tasks you want to outsource.
Once you’ve found someone who might be able to help you, do your research. Don’t just go with the first person you find, make sure you look into their abilities and ensure they can complete the task. Look at their website, find their testimonials, check out their work, and ask to speak with them about their process.
When you’ve decided on who to outsource work to, it might also be a good idea to start small. Giving them a smaller project might be an excellent way to see if they are right for larger projects.
3. Provide Information and a Detailed Plan
Your contractor can only perform the project to the best of their ability if they have all the information they need. You need to make sure you supply them with all the details they need to complete the task.
Your contractor will also work better on a clear detailed plan. That means you need to set deadlines and milestones for them to meet. Avoid using emails, as things can get lost, and instead use a project management app or collaboration tools for your correspondence and communication.
4. Make Yourself Available
Throughout the project, your contractor may need assistance or have questions. You need to provide times when you’re available to help them (if they need it). Making yourself available is essential in keeping the deadlines of the project.
At the beginning of a new project, with a new contractor, you may need to make yourself available a lot. They’ll have many questions about your business and the project, which needs answering for them to complete the task. However, if the relationship proves to be worthwhile then you might work with them more and not need to allocate too much time for communication.
5. Analyze the Success
Once you’ve worked with a contractor, you need to analyze the success of both the project and the working relationship. Firstly, you need to look at your goals and see whether they have been achieved. When looking at the results, remember to think about the money you’ve saved, the money you’ve spent, and the time you’ve saved.
You also need to analyze the success of the working relationship with the contractor. If they performed to a high level, you might want to consider keeping in touch with them for future projects. This will significantly help you keep costs down when it comes to future outsourcing.
You should also offer feedback for the contractor and ask for it yourself. They need to know what went well and what can be improved, you might also give them a testimonial or refer them to others. You can also ask them for feedback on how they felt the project went and if there’s anything you can do to improve your process.
Outsource Your Work Like a Pro
Business outsourcing doesn’t need to be something you are terrified of doing. It can help save businesses a lot of time and money, so if you need some extra help, don’t be afraid to ask.
From finance to marketing, we’ve got your business needs covered, so be sure to check out some of our other articles too.
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