Company Outsourcing: How To Choose The Best Outsourcing Strategy

Company Outsourcing: How To Choose The Best Outsourcing Strategy

Daven Michaels

Daven Michaels

New York Times Bestselling Author, 30-year business veteran, and Executive Chairman of CurrentC Power.

The tons of benefits that come with choosing the best outsourcing strategy include reduced overhead costs, meeting both short and long-term business needs, improved service levels, and minimized management intervention. This is why company outsourcing should be done carefully and thoroughly. Through outsourcing, companies are able to complete some aspects or specific business processes. In fact, outsourcing has become a common practice in certain sectors. For instance, the automotive industry depends largely on outsourcing to complete different stages of the final production.

Carrying Out a Need Analysis – The Best Approach

Before even reviewing various outsourcing strategies to choose from, it is important to carry out a business needs analysis. This way, a company can spot the business aspects that are underperforming and determine whether or not outsourcing will be the most viable remedy. Some of the things you should look out for when carrying out a need analysis include customer complaints, peaks in turnaround time, and process bottlenecks. And, bear in mind that the most effective way to spot problems is to carry out a comprehensive review of performance metrics gathered over a particular time frame.

And, as you start out your selection of the best outsourcing strategy with the analysis approach, list out about three or five aspects of your business that can be accomplished with outsourcing. Next, compute the overall operating cost of each identified aspect or area, including the overall income that came from each of these identified aspects in the past five years. The outcome will be valuable information that you can fall back on when you embark on company outsourcing solutions comparison. It makes no sense to outsource a business function if such a decision will end up in higher costs.

Ways to Implement An Outsourcing Strategy

Implementing an outsourcing strategy can take place in two possible ways known as complete and managed. When a company decides to embark on complete outsourcing, it means the entire business process is left to be managed and operated by an outsourcing provider. How effective this option would be will usually depend on factors such as the process involved as well as the internal dependencies.

Partial company outsourcing is usually associated with the management of customer service. It is popular to find companies outsourcing their customer service management as well as call centers to outsourcing providers. Usually, companies who outsource their customer service achieve greater efficiency as they concentrate on using a third party to offer better and enhanced customer service to their different customers and clients. Some companies also embark on supplementary outsourced customer service using a small internet team in-house to monitor the outsourcing firm in order to maximize the benefits that come with customer service outsourcing and at the same time reduce the potential risks involved.

Finally, when you decide on company outsourcing and start considering which outsourcing strategy to adopt, remember that the success (or otherwise) of outsourcing strategy depends largely on contract negotiations. You should insist on hiring an outsourcing provider with the required skills and resources to meet the standard of outcome you desire.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams

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