If you are thinking about outsourcing some of your business functions, you could be looking at a long-term partnership with an industry expert but provided you do your research correctly. Close to 32% of the companies that outsource their occasional critical functions feel that their outsourcing partners are not updated or sufficiently skilled for the job. However, if you know your requirements well enough and do your research correctly, you can bring yourself among the 68% of companies around the world who are highly positive about their outsourcing partners.
The following section talks a little about the various do’s and don’ts of outsourcing some of your critical and occasional business processes. Let’s begin:
- Do Look At Their Culture
Any outsourcing partner that you might be considering at the moment must fit into your own organizational culture easily. This is where you can avoid any initial teething problems. It is important to find a common area of interest or at least a point of agreement where all your team members and those of the outsourcing partner can find harmony and do away with any probable friction. If you want to ensure this, you will have to look for an outsourcing partner that has a similar company culture and thought process.
- Do Not Outsource Your Strengths
It is never a good idea to outsource any of the processes that you might be good at. You cannot do well in your industry if you decide to outsource your core responsibilities. This is because it dilutes your value as an industry player. It also damages your reputation in your sector and among your customers. You can always use your present resources to expand in your industry and acquire more talent as you move forward. Outsourcing your strengths is equivalent to losing your near-monopoly in the market and inviting problems for your business.
- Do Focus On Outsourcing Rare Skills
It is often advised to outsource the skills that your company is not in the need of very frequently. This means that you can go for business process outsourcing if you do not require, for example, website development too frequently. You can outsource certain skills related to logo designing or perhaps film editing to an expert company if you do not perform these activities in-house or within your company. This is a very practical approach to outsourcing because skills that you do not need regularly or technologies that you don’t make use of often can easily be outsourced and you can get the best results at competitive pricing.
- Do Not Outsource To Cut Costs
A lot of enterprises make this mistake. If you are looking to cut costs, associating with a third party or agency is not always a good option. It is only possible if you go with an outsourcing partner that has the lowest rate in the market. This is never a sound practice though because you get exactly what you pay for. More often than not, those “affordable” services or products end up sacrificing quality for the sake of cutting costs. This reflects poorly on your reputation in the present and can tarnish your goodwill for several years to come.
You need to understand that outsourcing any of your functions and mostly the ones that you perform occasionally or once in a blue moon is the right approach. Don’t outsource just for the sake of doing it. Do it for the right reasons.