Picture of Daven Michaels

Daven Michaels

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

In the midst of a period of crisis and assumed economic instability, working with strategies that minimize costs and prioritize quality is more than a simple obligation to remain in the market. One of the most viable options, in this context, is to know how to outsource services, and it is precisely this important subject that we will talk about in this article!

Did you know that using this alternative as a competitive advantage, several companies have already glimpsed this incredible opportunity that is linked to outsourcing? This model of work, which emerged in the middle of the Second World War and, since then, has been present in the daily lives of countless companies, opened the doors of small, medium and large businesses to the many advantages of this modernization.

How can outsourcing services be an opportunity?

Unfortunately, some entrepreneurs understand that outsourcing services ends up making the business more precarious, which is obviously a mistake. In fact, with outsourcing it is possible to envision an incredible range of opportunities! Going further, this is a way to save the company since it has many advantages that directly contribute to your daily life.

When it chooses to outsource, the company is able to concentrate its energies and efforts in achieving its objectives, dedicating itself to the core activities of the business and achieving better results. Here are some of the main advantages of working with outsourcing:

Specialization only of core activities

When the company outsources the middle-activity sectors, it is able to invest and seek specialization only in the tasks that really matter, which can increase its profits and expand its client base. For example, a toy production factory that hires outsourced people for activities such as cleaning, safety and human resources may be more dedicated to the pursuit of excellence in its production process, as well as improving the quality of its product.

Cost reduction

Despite being a contradictory point, since some companies understand that the outsourcing process reduces costs while others consider that these are maintained or even increased, it should be considered as an advantage mainly in the cost-benefit assessment. Even in cases where there is a noticeable increase, this is perfectly justified by the reduction of the stress of the administrator himself, who, in many cases, has to solve everything.

More quality in middle activities

Another great advantage for companies that hire outsourced workers is the quality they receive for the contracted services! When the business opts for this type of external contracting, it is easier to verify the presence of well-trained and specialized employees. It is also simpler to measure results and request improvements with the partner company without major headaches.

HR Management

The outsourcing of activities is, in addition to a great advantage, an excellent opportunity for everyday business, allowing greater dynamics in this department. Hiring this service allows simpler processes, such as payroll calculation and other specific operations, to become the outsourcer’s total responsibility, thus allowing you to focus on other important tasks of the administrative routine, such as evaluating results, for example.

What is the step by step to outsource services?

Did you realize how advantageous it can be to invest in outsourcing within your company? The procedure, even though it is easy, requires certain precautions so that any and all types of risk are avoided.

Here’s how to outsource services in 5 steps:

1. Assess the real needs of the company
Before looking for any type of service outsourcing, it is essential that the company is very clear about its true needs. This assessment, in addition to defining the best investment opportunities, will also show which processes can be improved or where it is possible to minimize costs through contracting. At this stage, it is still valid to list the values ​​available for investment with third parties.

2. Search for companies and check their history
After having the needs of the company well defined, it is time to look for outsourcers that offer real solutions for the business. For example, if in the previous step it was established that there is a problem in hiring and maintaining staff for cleaning, how about outsourcing that part? To do so, search for companies that offer this service and check their history in the market. Try to ask for references for customers of these companies and see the service portfolio.

3. Clarify all points of the contract
The outsourcing of services is governed by employment contracts whose responsibility, as well as the rights and duties of both parties are established there. At this stage, it is important to make it clear how the contact between the parties will take place, to whom the company must report in case of doubts, unforeseen circumstances and so on. It is also at that moment that the forms of feedback and the duration of the signed contract are established. Never sign this important document if you are still in doubt, right?

4. Supervise the contracted service
It is not because you have outsourced a particular sector of the company that you can wash your hands. It is essential that you, or some other responsible employee, inspect the work that is being developed so that constant improvements are made. If something, which has not been agreed, happens, it is important that the company takes the correct posture, either to draw attention or to report what happened. Supervising work is also a simple way of knowing whether or not it was worth investing.

5. Remember: cheap is expensive!
Finally, this last step could even be called a hint. Erroneously, many entrepreneurs are looking for outsourced companies aiming solely and exclusively to reduce business costs.

Because of this, many companies hire incomplete or low quality services that, although they positively impact the company’s payroll, end up disrupting business routines, harming employees and even causing the loss of customers. This type of partnership is not recommended in any situation! Escape these traps!

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 ew theories and systems allowing them to design the business and personal lifestyle of their dreams.


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