Although it has been considered as a frightening proposition by a lot of business owners who misunderstand the concept, outsourcing can have a strong, positive impact within any organisation: it can improve efficiency, reduce costs, speed up the product development process and allow companies to focus on their initial, core competencies.
When considering a partner for a strategic outsourcing alliance, there are some key elements that you should be aware of.
Should you invest in outsourcing?
Over the past 25 years, the outsourcing industry has grown from zero to a multi-trillion US dollar business worldwide. This fact alone should give you a new perspective on the idea of choosing an outsourcing partner for your company.
Furthermore, according to the Information Services Group, annual global revenue from information technology outsourcing is estimated to amount to between 60 and 70 billion U.S. dollars. (Source: statista.com)
Here are some additional values of working with an outsourcing partner:
- it enables an organisation to achieve business objectives, add value, tap into a resource base and mitigate risk
- it concentrates on the core process rather than the supporting ones
- it reduces operational and recruitment costs
How do you know you have found the right outsourcing partner?
Best practices for finding the right outsourcing partner to your business include:
- Your company’s ability to attract and retain talent
- A good understanding of their existing processes
- The company’s plans and efforts to keep their employees up to date with the latest advancements
- Keeping a healthy company culture
- A vision that identifies itself with your own company’s goals.
- Your employees’ willingness to adapt to the company’s changes
If you want to make sure you have found a reliable outsourcing project for your business, get ready to ask the right questions.
Asking for details of the company you want to do business with is crucial when it comes to outsourcing. Make sure you receive a satisfying answer to the following questions:
- How long have they been in business?
- How many offices do they have?
- How many employees work for them?
- What is their history and experience in the business?
- Who and where are the employees located if they have multiple offices?
For a better understanding of the company’s professional integrity, you need to know what types of projects they have worked on in the past. Be sure to know:
- When was the last time they had someone working on a similar company project?
- Will that respective team of employees be working on your project as well?
What do your client references have to say about the company’s customer service department and how do they handle bad reviews?
- Additional costs
You need to be aware of any hidden costs that could be found in implementation, testing, training, connectivity, infrastructure, transition and so on.
The right questions to be asked here are:
- Did they ever work on fixed cost engagements?
- What is needed to get a fixed cost pricing on a project?
These are just some of the questions that require a valuable response from your prospective outsourcing partner.
Outsourcing can have plenty of advantages for your business. From growing the company to saving capital, finding the right outsourcing partner can help your business focus on its core activity and become a leading tool in the management process, within the organisation.
If you need professional assistance and support in finding the right outsourcing partner for your business, do not hesitate to contact us here. We can provide you with optimised solutions to cater to your every professional need.