Company outsourcing is not a new practice, but has become increasingly common because of its great benefits. The benefits include spending less on overhead items, cutting off extra employee benefits such as insurance, leveraging the third party’s (the outsourcing provider) fully equipped workspace and expertise. These are all aspects that add up to the running cost of a business significantly. Other benefits in addition to cost savings include reduced business risk, increased competitive advantage, and increased profitability.
However, to ensure you maximize all those benefits and even more, you must apply caution and adopt high standard procedure in assessing a company outsourcing service provider.
Be Clear about Your Outsourcing Goals
What aspect or aspects of your business do you want to outsource? Why do you want to outsource them? What level or quality of service are you looking forward to getting from the outsourcing contract?
Having clarity on your outsourcing goals and decision will help you weigh the pros and cons of outsourcing versus accomplishing the task in-house. For instance, you can compute the costs you are currently incurring on the business process you intend to outsource and the likely cost when you decide to outsource the task. If outsourcing promotes lower cost (which is most likely to be the case), it is obviously a smart decision to leverage company outsourcing services than hire staff in-house.
Research A Good Number of Providers
The internet offers the quickest and more efficient way to research outsourcing providers. For instance, you can target independent websites that provide quality reviews on outsourcing providers. This way, you can assess and compare hundreds of relevant outsourcing providers at a go.
And, when you interview outsourcing providers, you should focus on salient areas such as the relevancy of their experience or qualifications to the business process you wish to outsource. Also, find out if they’ve provided services to clients in your industry before, and if the clients were satisfied with the outcome. Providers that are genuine will not hesitate to hand out the contacts of their previous clients to you. The Better Business Bureau website is also a great place to obtain quality review of company outsourcing providers.
You should also pay attention to their fee charges since cost is the main essence of leveraging outsourcing. If you will not incur less cost on a business process by hiring an outsourcing company, then you are embarking on a futile effort. But, at the same time, you should be wary of very low rate as this could mean very low quality final outcome.
Again, don’t forget to assess the technology in use. If the technology is not up-to-date to provide the quality service that you seek, you should look elsewhere. You should also enter into a contractual relationship with a company outsourcing provider to promote quality outcome.
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 build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.