Do you want to learn how to outsource like a pro? In this article, we highlight the main function of becoming a successful outsourcer, read on to find out more.

A company will need to keep costs down. Outsourcing is a potential method to aid this, should you find the right partners for outsourcing you and your company may find that you benefit a lot from this arrangement with said partners. Locating the correct partners requires you to find out how these partner companies will go about the tasks you set them, how efficiently and how that company synchronizes with your own.

Photo by Hannah Wei 

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What tasks can be outsourced to save money? As a company you will need to identify said tasks and find the right partner to handle them. You will also need to find what kind of benefit your company will see from outsourcing which tasks you choose. Reasons to outsource can range from saving money, shorter tasks/projects or attempting to expand into a new market.

 

1. You may also choose to outsource for smaller one time tasks, the creation of a logo or advert for example.

The most commonly outsourced tasks are ones that require a specialist skill set or equipment. It makes little sense for your financial advice company to design a logo in house. You may need an experienced website designer to design, create and constantly update your own site or sites. You may also consider outsourcing smaller and simpler tasks such as data entry or product shipping that require simpler training to complete.

 

1. A good example is payroll. Many companies outsource that task to help reduce accounting expenses.
2. Customer service is another good example, as this helps reduce the cost of maintaining a full time customer service staff.

Anything that requires outsourcing needs to be something that can be handled outside of your company. Never outsource your primary business strategies or functions. A small scale business that designs wedding cakes should not outsource the cakes themselves. But a business that designs phone accessories may consider outsourcing manufacturing as opposed to the design.

1. If you cannot measure a function/activity, simple don’t.
2. Anywhere costs can be saved (payroll) are worth looking into.

 

Consider starting with smaller functions and tasks to outsource. When selecting a partner, this will allow you to gauge and judge the quality of their work without it being too risky. Perhaps offer this potential partner a trial period to complete the task as this will work perfectly for tasks that may not be able to be broken down into smaller stages.

Part 2:

Set parameters for potential partners. You will want to find and secure a partner who is able to make your business look better as opposed to dampen your shine. Always ensure to place clear time frames and deadlines for when tasks are to be completed.

I. Payroll needs to be delivered to your employees without delay for example.

 

Should you plan on using a foreign company to outsource. It can be useful to employ an outsourcing agency as these can not only find potential partners for you, but supply quality guarantees and always simplify the process of locating the perfect partner.

1. Upwork and Peopleperhour are two of the larger agencies you can use, however Skillbox is a platform that offers services across multiple channels in a secure environment.

 

List names of as many possible partners as possible, local commerce chambers, internet searches etc. Trim down that list to a number of companies that will provide the service/benefits your company needs and make sure they have a good reputation and high support level from their previous customers. Try and find examples of their previous work as well.

 

Take the time to go through your potential partners and interview each one in a professional setting. The contacts that provide clear, concise answers are the ones that merit looking into further. Anyone who supplies vague or even evasive responses should be struck from your list of prospects immediately, if you are also outsourcing overseas, ensure that the prospect conforms to U.K labour laws.

 

An RFP includes a request for a price estimate and a description of any and all available services that this potential partner can provide. This will help you narrow down your list of choices even further as you compare and contrast each company to your RFP.

 

Keep working towards the best combination of value and quality with your partner. Don’t choose the lowest price because its there, only choose the lowest bidder if their quality of work is on par with what your company needs.

 

Part 3:

The contract or statement of work between your partner and you will need to lay out everything you want from them in as specific terms as possible. It will also specify services provided, the time frame for those services and payment provided.

1. Be as clear and exact as possible in your stipulations for this relationship.
2. Arrange contact as well, maybe through a weekly or bi-weekly assessment.
3. Negotiate terms of payment, how much is due and when etc.
4. Consider establishing a financial penalty if certain conditions are not met.

 

You must go through the terms of this contract with a fine toothed comb to ensure that it is to the maximum benefit of your company. Then, finalize the partnership between your company and the partner and begin reaping the benefits of this relationship. If this is your first time outsourcing, you may feel the need to check over their work as much as possible, try and refrain from this as both parties will need time to settle into the new system.

 

Whether local or overseas you will need to establish and maintain communications with your partner in order to communicate plans effectively and in a timely manner. Establish points of contact within both companies to facilitate this, establish further communication protocols and be sure to explain any and all industry specific terms that the partner may not know, as this will avoid and confusion further in the relationship.

 

Once the partners first task is completed or milestone reached. Consider an assessment to see if the work is up to their previous standard. Was the contract fulfilled and promise kept? This is the crucial point where you decide if you wish to continue your relationship with the partner. If not, it may be time to end things early.

 

Any company has stories and examples of an outsourcing partner failing to hold up their end of the bargain. One partner may use sub-standard material in manufacturing in order to cut their own costs and this may fall out of the stipulations of your contract. Whilst it is very important to let the partner handle the project itself, never be afraid to ask for regular updates on progress to ensure everything is being kept above board.

 

Always take into account cultural differences when working with an overseas partner. Concepts that we hold such as critical comments or direct statements may be held in a very different context/value from their point of view. Always take the time to research another countries business culture and practices before entering negotiations.