Use Business Outsourcing to Expand Business Potential for Less
When a business is just about running at its capacity and people are about to burn out, it is time to take off some of the pressure. This can be easily done through outsourcing some of the work to qualified individuals or companies. Business outsourcing is also a powerful way to expand the business operations and increase output for considerably less cost than hiring new full-time employees.
Advantages of Business Outsourcing
The main reason for outsourcing is to put the task or operation into the hands of already equipped or experienced individuals or companies who are sure to produce a quality end product at less than cost if kept in-house. Because such talent may even be better than in-house abilities, it is also less likely that there will be cost overruns or a need to redo the project better.
While some tasks may need to remain in-house, many can be performed outside – even better. This would be especially true if the work consists of a number of small projects requiring talent not found or sufficiently developed in-house. These tasks can be outsourced to qualified people that specialize in them. This will also help to reduce the need for additional costs of training an employee, or hiring a new one to do them.
For small business owners, or solo entrepreneurs, outsourcing jobs can result in a greater focus on those tasks that are more enjoyable, or more in line with the talents of the owners. According to William Hill, this can provide a better usage of time and also relieve some of the stress of having to do everything.
Select Business Processing Outsourcing Tasks
In order to create more time and greater use of in-house talent, select those business processing outsourcing tasks that do not have to be kept in the office. This can include many tasks, such as IT outsourcing, call center outsourcing, software outsourcing, HR outsourcing, payroll outsourcing, and process outsourcing, to name just a few.
Keys to Successful Outsourcing
When looking for the ideal tasks to outsource, those tasks should be considered that require the least amount of communication and supervision. Since the goal of outsourcing is to free up time, lower costs, and put projects into the hands of professionals, it only makes sense that supervisory tasks should also be kept at a minimum.
This will require that extremely good directions be written (especially for unusual or detailed projects), and that the project manager ensures that the outsource company or individual understands exactly what is expected. Less than precise instructions will often result in cost overruns and delayed results. This is a serious concern especially if offshore outsourcing involves people that do not fully understand English.
Finding Qualified Outsourcing Companies or Freelancers
Testing with small projects first should be done on the company or individual to determine the quality of work, communication levels needed, and time until there is a completed project. This will help reduce errors and misunderstandings, as well as enable the outsourcing costs to be kept low. Once a good outsource company or individual is found, larger projects can be given, and different types of projects may be increased, too.
Things to Watch Out for When Business Outsourcing
Business outsourcing is becoming even better developed since so many companies are now outsourcing many of the tasks that had been previously been kept in-house. Tasks such as billing, data entry, phone services, and email services are now frequently given to those outside the company. Business outsourcing is not without its problems, however, and care needs to be exerted before choosing outsourcing services. Here are some things to watch out for when outsourcing projects.
The Type of Project to Be Outsourced
Some projects are handled better in-house simply because of the continued modifications that may need to go into it. When projects need close team interaction and brainstorming, it needs to be kept close to those who can make the decisions. It is best to outsource those projects that are more or less self-contained and do not require constant communication.
Budget Allotment for Project
One of the main reasons for outsourcing is to keep the costs within the budget. In order to achieve this, however, careful cost calculations will need to be performed to ensure that it will be cost effective. In addition, be careful about paying too much in advance so that the outsource company or individual does not back off the project causing time delays.
Watch Time Zones When Business Outsourcing
If the project is on a very limited time frame, then it will be necessary to keep the project within a nearby time zone. Unless there are people awake around the clock to communicate with the outsource provider, it can cause real problems if much communication is needed for project completion.
Offshore Outsourcing Can Lead to Cultural Problems
Before a project is given to a foreign nation, be sure that cultural issues are clearly understood in advance. Sometimes other nations have longer holidays, or they may not work on the same days as the project creator. This can lead to real headaches and longer delays than would have occurred otherwise. Also, make sure that language is not going to be a problem by ensuring that someone is in charge that clearly understands both languages and cultures.
Clear Documentation Is Needed
One of the greatest problems outsources providers experience is a lack of clear directions. While it may be clear in the head of the project originator, if it is not clear on paper it can cause unnecessary delays and changes in price and time. Make sure the document is understood in advance and clarify issues before letting the project begin. Avoid providing general instructions which can be interpreted in several ways.
Business outsourcing is a very effective way to reduce costs and improve performance. This is especially true when outsourcing to service providers who are experts in the required services needed and can be paid only for the hours worked or for the services performed. Outsourcing jobs can just as easily be kept within the US, and does not have to go to outsourcing companies halfway around the world.