Business Outsourcing: A Smart Strategy for a Growing Business
If you have a successful start-up and you have managed your business well in the first five years, there is a great chance that you will be expanding your operations. This means that there is also a huge possibility that additional tasks and projects will be added. There will be a need of additional workforce that can help you in doing those errands. However, hiring new people can be costly and time-consuming.
In this situation, one of your best options is outsourcing. It is the process wherein you will be handing over non-core functions in your business to a third party in exchange for a fee. To put it simply, occasional or basic tasks that doesn’t involve major decision-making such as payroll processing, office cleaning, and call handling will be handled by experts. This process enables you to:
- Release your capital for other investment needs for the expansion of your business operation.
- Reduce the expenses that you will incur in handling new projects or ventures.
- Convert your fixed costs into variable costs, which will give you more leverage.
- Focus on revenue producing activities that will increase your profitability and will attract more investors.
- Create pricing strategies that can give your company an advantage from your competitors.
- Efficiently allocate or redistribute human resources where you need them most at certain point of time.
- Steer clear from the burden involved in hiring, acquiring and maintaining equipment and infrastructures.
- Reduce your expenditures in providing training courses for your workforce.
- Gain access to industry best practices that can be applied to your own operation.
- Ensure the efficiency of your non-core functions by hiring industry experts.
- Ensure that your management team focuses on their functions in running your business.
- Deliver high-quality services to your clients.
- Reduce the financial, operational, strategic and compliance risks that you carry.
- Gain access to same economies of scale, efficiencies and expertise that usually only large companies have.
- Compete with the in-house support staff or services that big corporate organisations usually have.
Based on the advantages that you can get, outsourcing is one of the strategies that you should use for your growing business. However, it should be done correctly to ensure the efficiency of your operation. Whether you want to outsource call handling services or social media processes, you must follow these guidelines:
- Evaluate the Outsourcing Partner
- Check Experience
- Don’t Decide Based on Price Alone
- Ensure the Presence of Efficient Infrastructure
- Define the Scope and Schedule
- Negotiate Ownership
- Ask Service Support after Project Completion
- Get the Transaction in Writing
Finding an outsourcing partner is similar to hiring an employee. You must do a standard background check of the company and its history. You can check their references and ask feedback from previous or current clients for further information.
Make sure that the service provider that you will choose has the proper experience for the business functions that you will outsource. This is crucial especially for technical projects that will require expertise. You can check their portfolio or review their previous works to ensure that you are hiring the right people for the job.
Do not use price as your major basis in hiring a service provider. In most cases, companies that outsource to others reject proposals with the highest and lowest prices. They opt for those firms that offer a balance between cost and quality of work.
See to it that the firm you will hire has the right infrastructure to efficiently carry out the functions that you will hand over to them. For example, if you will be outsourcing call-handling services in the UK, opt for the company that has the right telecommunication equipment for the job.
Talk to your outsourcing partner and state what you are trying to accomplish in acquiring their services. Define what would be your requirements and when would you want the project to be finished. This will enable them to provide you with a quote on the services they will provide.
If you are outsourcing a project to another company, make it clear that you will be the owner of the resulting product after all the work has been done. This is to ensure that you won’t be experiencing any proprietary issues in the future.
In project-based outsourcing such as website or software development, discuss the service support you require on the usage of the finished products. The firm you hired should be more than ready to provide you with assistance.
After all things have been taken into consideration and you have established every terms of the outsourcing with the service provider, you should prepare a legal contract. It should contain all the provisions that you have agreed with including the schedule, project scope and price. It should also include a proper exit strategy in case you will decide to terminate the contract.
If you are searching for a company that can provide your outsourcing needs on your social media processes, you can get in touch with us here at Green Lettuce. We can provide you with the assistance you need in creating a solid social media marketing strategy.