As of 2010, the global outsourcing industry was worth over 1 trillion USD annually; with India hauling a whopping $50 Billion; China $15Billion, with the remainder split among other countries playing actively in this field.
In order to stay competitive in today’s ever-changing business climates, companies especially SMEs must constantly find ways to control costs, and boost efficiency. This is particularly important with respect to the impact caused by the COVID-19 pandemic on many businesses across the globe.
Outsourcing is a strategic management tool that offers efficiency, savings, convenience, and most importantly, expertise. Thus, having the right outsourcing partner is very essential to your Business.
If you are considering outsourcing some of your services or functions (e.g. Payroll, accounting, HR functions, etc.), there are some factors to consider so as to ensure you have the right outsourcing partner.
1. The Management Team
Since you would handing over a particular function or service of your business to the outsourcing company, you have to be comfortable with the team that leads that company and you need to be satisfied with the level of expertise the delivery team will be bringing to bear for your organisation. Check and double-check that they have the required experience and qualifications to carry out the operations and go as far as references to check other clients’ satisfaction. This to a great extent informs you of the quality of work that you can expect from the company.
When you outsource, it gives you room to focus on your core business and more important strategic activities – growth, and the price is usually a motivation to do this. This is not to say that outsourcing services are always necessarily cheaper (in cash cost) than if you had your own team internally, its guarantee is often more with respect to the quality of deliverables and how it frees up your supervisory time for more strategic activities as a business founder. Make sure that you are getting the best possible price for the quality of service. Check the vendor’s price range and compare it with that of other service providers.
It goes without saying that the firm must be reliable, you should literally be able to go to sleep on that business unit. Before choosing an outsourcing partner, it is important to ensure the firm is one you can rely upon to carry out operations without so much intervention or micromanagement. They need to have the clout to tell you how they should do things for the best results which you should be able to measure with ease. Check the vendors’ website, infrastructure, availability of staff to have a fair idea of how reliable the vendor is.
4. Trained Resources
Outsourcing saves on cost of employment (which is more than just salaries) and training employees, which are not prudent expenses for a growing business. By outsourcing, you indirectly have access to expertise that you may not be able to afford on a full-time basis. Thus, you should make sure the vendor has appropriately qualified and experienced resources and know that you have a right to know who will be assigned to your job.
Another factor you might want to consider is flexibility. Make sure the vendor you choose is not rigid, but rather flexible in their operations and approach. The vendor must be able to understand your business growth stage, appreciate your concerns and offer appropriate solutions with measurable results.
As your organisation continues to recover from the impacts of COVID-19, it is time to focus on the core competencies of your business and what you do best. We hope these factors help you in your search for an outsourcing company.
For enquiries on the outsourcing services offered by Cr8 Careers, send an email to email@example.com