Outsourcing is once again the hot topic across multiple industries in multiple countries. Outsourcing as much work as possible at the least cost must not be the only aim of the search of a reliable outsourcing company. Every move needs a strategy. The correct approach will depend on the time, product, culture and the situation. Therefore, the models and strategies vary from company to company and from year to year. In fact, it will change depending on the country you are planning on outsourcing to.
When is the right time to outsource?
That is one of the most critical questions in this field. How do companies even understand that it is the time for them to outsource a task or a process? According to Outsourcing Insight, the easiest way to know is by performing a cost to time calculation. It is quite simple – if you hire a new team to complete the task will the cost be lower than another company doing the same within the same deadline? If the charges are comparable, you might as well stick to an internal team. If the cost is much higher for your in-house team, then you should go with an outsourcing company. That is true for both long-term projects and one-time events.
What is the goal of your outsourcing strategy?
Multiple companies can have various goals. For many, the only aim is to provide the best possible solutions in terms of technology to their clients and customers at a lower cost. For other companies, it is to save time for completing a bulk work within a given deadline, e.g., hiring back office services. Multiple companies are aiming for shifting to a digital cloud platform that relies on outsourcing as well. The strategies are evolving with the goals of outsourcing. Today, most companies take a multi-vendor approach to achieving their goals.
What are the secrets to a successful outsourcing strategy?
Outsourcing helps your business connect to a global market. The most significant secret of a successful outsourcing strategy is limiting your company from outsourcing its core competencies. Different processes require different approaches and the different strategies have different needs.
While outsourcing your IT process, try to look at the internal process. Look at the flow model and find out the value addition point. Process re-engineering can save a company a fortune. However, re-engineering an entire business process can take considerable effort, knowledge and time. Process change is not only hard to source, but it is also much riskier than sourcing IT solutions. A company needs to assess the competence of the outsourcer to forward tasks involving corporate governance to external teams.
Outsourcing usually fails due to poor planning and execution. Choosing an outsourcing company that has multiple clients is an excellent way to save money and time, and all a new impetus to an ongoing business process. The strategy for each company will depend on their unique needs and immediate goals.
Author bio: Linda North is a digital marketing advisor working with several national corporations. According to Outsourcing Insight, information and data security will dominate the list of sourced tasks even in 2018!
