Outsourcing Tips For Business

Outsourcing Tips For Business

Picture of Daven Michaels

Daven Michaels

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

Outsourcing Tips For Business The global economic environment is caught up with an interesting trend known as outsourcing. Business outsourcing covers different areas of a company or organization’s business activities and operations. Outsourcing has completely changed the mode of operating business in this present dispensation.

Basically, there is in-country outsourcing and offshore outsourcing. When a company outsources part of its business activities to an outsourcing contractor in the same country where the business is residing, this is called in-country outsourcing. But, when the outsourcing contractor resides in another part of the world other than the country where the outsourced company resides, this is known as offshore outsourcing. Business IT is one of the most outsourced operations or functions, both in-country and offshore.

Why Should You Outsource Your Business Operations?

1.It can be cost-effective

Business outsourcing can be cost-effective sometimes compared to carrying out the functions in-house. The overall cost of certain areas of business operations such as IT management can be greatly reduced by embarking on outsourcing. Generally, areas covered under cost-savings include re-pricing, scope reduction, cost-restructuring, re-negotiation as well as quality levels definitions.

2.Access to Talent

An organization or company gains access to a larger talent pool when it chooses business outsourcing. Such company would also become a beneficiary of sustainable source of skills, particularly in IT, engineering as well as science. This is a big plus to a company that has limited or less knowledge and skill set in these specified areas. So, a company needs not to lag in certain areas just because it does not have the required manpower skills or adequate facilities in such area. Outsourcing has made everything possible for a business or organization.

3.Liability Shift

As a company outsources specific business processes or functions that are not within its core expertise, it indirectly shifts or transfers part of the company’s liability to the outsourcing contractor. Thus, the outsourcing company bears part or whole responsibility of any undesirable outcome. Well, it all depends on the terms of the contract that is binding on both parties.

Now, when embarking on business outsourcing, ensure that sufficient research is carried out on the outsourcing contractor. Some of the things you should research about the company include;

• Proof of required skill possession in the intended business operation or function. An outsourcing company that is specialized in IT outsourcing may not perform satisfactorily in HR outsourcing, except it has multi-skilled staff. It is really more efficient to contract a company that has proven skills in the business area you need outsourced.

• Check the portfolio: the portfolio should contain certifications in specific outsourcing areas as well as general outsourcing certifications. It should also contain proof of membership to relevant outsourcing body, either locally or internationally. Also, references of past projects and their contacts should be part of the portfolio of a competent business outsourcing vendor.

Business outsourcing will help your business in several areas, including gaining a competitive edge in the present harsh business environment.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

17 thoughts on “Outsourcing Tips For Business”

  1. 1.Thanks for this insightful guide. I actually run a law firm in the heart of New York and business has been good. I have always believed in the outsourcing philosophy and ready to give it a try. This write-up sure came at the right time. Thanks a bunch. Clara.

  2. 1. I agree 100% with you Daven. After living in Malaysia for almost two years, I can tell that the people are organized and very willing to move ahead; I am sure this country would be a serious contender in the outsourcing market in the near future.


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