Outsourcing is the practice of delegating certain tasks of a company to a specialized service provider. Also known as outsourcing, it is an alternative that allows entrepreneurs to save money in terms of recruitment and to free up time to focus on their core business. The other advantages are numerous. Thousands of companies around the world have chosen this solution by selecting reliable, serious, experienced and efficient partners. How do you know if outsourcing is right for your company?
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What are the advantages of outsourcing for companies?
Outsourcing offers many advantages to companies.
Focus on your core business
During periods of peak activity, it is necessary to add extra workload to the various actors of a company. The company’s human resources are sometimes overloaded with work and can no longer fully concentrate on their main missions. The outsourcing of specific tasks allows employees to refocus on the core business of the company.
Save on certain costs through outsourcing
The costs associated with the acquisition of new equipment are often substantial. In most cases, outsourcing is the best alternative to deal with this problem.
Outsourcing also allows you to reduce the costs related to recruitment: the time reserved for the search for candidates, the social charges, the computer equipment… Thus, if you outsource your tasks, you will make savings that you can reinvest to promote the growth of your company.
Enjoy greater flexibility
Another advantage of outsourcing is that it allows you to gain flexibility. Indeed, if you need specific skills for a given period of time, you will be able to call upon additional human resources, remotely. For example, if you have difficulty finding temporary staff to reinforce the teams of the department dedicated to compatibility, outsourcing will allow you to solve this problem.
Maintain a good dynamic within your teams
When a company wants to increase or reduce the number of employees according to the fluctuation of the activity, it can lead to misunderstandings and uncertainties within the teams. The outsourcing procedure allows a company to adapt its workforce remotely, while maintaining good working conditions for its human resources.
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How to determine if outsourcing is the right option for your company?
Before embarking on an outsourcing process, we advise you to take stock and determine your needs and expectations. To do so, it is necessary to identify the following elements
- the need to outsource an entire department or just a part of it,
- the reasons that justify your interest in outsourcing,
- your expectations in relation to the economic context of your company,
- the possible consequences of outsourcing on the existing operating mode,
- the advantages and limitations of outsourcing for your company,
- your expectations of the service provider,
- the impact on the company’s overall budget.
Outsourcing is sometimes necessary, but you may find yourself confronted with reluctant employees.
You must therefore think about how to convince them. You have to learn how to accompany the teams in the change process through good communication. The idea is to reassure them about the project that will be put in place so that they know that outsourcing will not lead to a loss of responsibility at the team level.
Even if outsourcing seems to be a good solution for your company, you must also take care to anticipate the fallout, whether positive or negative.
Defining the right metrics is crucial. Depending on your objectives, it is possible to define many indicators: response time, quality of service, availability… This will allow you to anticipate the performance expected by the outsourcing operations and to define improvement points if necessary.
What are the risks associated with outsourcing?
Outsourcing can present certain risks for companies, so it is important to be aware of them.
First of all, it is important to know that skills and experience vary from one provider to another. Indeed, there are countries where certain qualifications take precedence over others. For example, in the field of engineering, it is difficult to find qualified professionals outside Eastern Europe.
To avoid choosing the wrong provider, take the time to do thorough research and compare the services offered.
Also, the technology used can be a problem, as it is not necessarily the same everywhere. This is why you should pay attention to this risk by taking stock of your needs. Then, it will be necessary to see if the technology used allows to answer your expectations adequately. This will prevent you from opting for an unsuitable outsourcing service.
Finally, data security is one of the risks associated with outsourcing, despite the efforts of authorities to protect user data. If the provider does not have a secure device, we recommend that you look for another provider who can protect your company’s confidential data.
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How do I find a good provider?
It is recommended that you consider certain factors in order to find a good outsourcing partner for your business.
Experience and expertise
Even if you need to outsource low value-added tasks, you should choose an experienced provider. For example, for marketing, choose a company that makes it its core business. If possible, ask for a one-week test phase in order to test the business expertise of the future provider.
The work methodology
Your outsourcing partner must be transparent. You must clearly know his operating mode and work process in order to estimate if it is compatible with yours.
The price
The choice in terms of services is wide and the offers will obviously not be the same. This is why it is necessary to take the time to make a comparison, to contact the different providers selected and to ask for quotes. The comparison will help you to reduce the costs and to optimize the activity of your company.
Steps to set up an effective outsourcing agreement
It is necessary to follow certain steps to set up an effective outsourcing agreement. You must:
- anticipate the needs,
- define the tasks to be delegated,
- draw up a set of specifications,
- raise staff awareness,
- choose an outsourcing partner,
- set up collaborative tools,
- make regular updates with the providers.
Outsourcing tools will help you stay in touch with your provider at all times. You will be able to exchange with him from time to time and share files useful to his mission. As in the specifications, list the missions and the means deployed in order to reach the set objectives. You can opt for tools like Trello, Dropbox, Skype, Slack, Google Drive…
Finally, to make sure that everything works with your outsourcing partner, organize regular video conferences. This will be an opportunity to exchange with your provider to review the progress of the mission and to answer any questions. The more contact you have with the outsourcing service, the less chance there is of misunderstanding and disappointment with the results.
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Advantages and Disadvantages of Outsourcing your business
To conclude
In short, outsourcing allows you to focus on your core business by saving time and increasing flexibility. It helps to develop your company’s skills with qualified and specialized professionals. It is also an excellent way to reach your objectives in a faster way while having a perfect control of your costs.
