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Tuesday, June 16, 2015


When To Consider Outsourcing

In the last few years, there is an increasing trend that small businesses turn to hiring independent third party agencies to do a part of their work. The roots of outsourcing are much older, though, as businesses   have been paying outside lawyers, accountants and translators since term “business” is around. Rather   than keeping extra staff for specialized tasks, in many cases it is cheaper and easier to hire outside   contractors. Let’s explore when that is justified.

Outsourcing Is Liable If…  

The first criteria for outsourcing an activity is that it isn’t crucial for generating company profit or success   among the competition. Secondly, that activity has to be a routine that wastes time and resources, while   it is only temporary or cyclic. Next, outsourcing must prove to be less expensive than performing the   activity in-house, or similarly, it is cheaper in-house but requires resources that can be better used   elsewhere.  Finally, the skill for outsourced activity must be specialized to the extent that keeping a full-  time employee wouldn’t be feasible, or it is such an activity that people don’t find enjoying.

What Can Be Outsourced?  

There is a wide range of activities and jobs that can be outsourced, varying from accounting, payroll,   manufacturing and delivery to customer service, employee training, property management and   computer services. The most important aspect of outsourcing is that you can divert valuable resources   and human potential to more profitable activities. However, there is always a danger that a company   outsources an activity that seems benign but in fact turns to be central for operation, like customer   service department in a company that is struggling to develop a loyal customer pool.

Research for Contractors  

When you decide to outsource a specific department, you should start looking for an agency that will   take it over. For example, you can ask companies that are in the same business as yours if they know a   good outsourcing agency, which can continue trawling the Internet for more elaborate list of services.   The companies that came into your searchlight should provide you with a list of their client references,   which leads you to interviewing those clients to find out more about a particular company services and   business conduct.

Choose a Company that Suits your Needs  

A compatible outsourcing company is the one that fully grasps the essence of your needs and is ready to   deliver the product or service that you asked. For example, if you need a breathtaking video   presentation of your company, you will more likely hire a California film company than make your PR   managers put one together.  The contract that you make should be composed in such a manner that it   allows the terms of agreement to be changed, in order to accommodate unforeseen changes.   Remember that an agreement might seem perfect now, but useless in a few years.

Set the Standards you Expect them to Meet  

An inevitable side effect of outsourcing is that a business loses direct control and supervision, so what   you need to do early on is lay out the standards of performance that you expect. The contract should   specify these standards in detail, and our job is to check up the outsource performance regularly.

Consistent Communication  

It is imperative that you are holding regular meetings with your outsourcing agency so you can stay   informed, while discussing daily problems that they are experiencing. Preventing potential problems in   the future is only possible if you are completely aware of what is going on, and eventually your business   operation will improve thanks to good communication between the HQ and contractors.

 It seems that outsourcing trend hay set to take its full swing, as the number of independent contractors   is increasing on daily basis. Definitely consider it as a tool of taking advantage over the competition,   whatever your business might be.

I am a Part Time Blogger. By Education i am a Computer Engineer, who Loves Software, Programming, Social Media. You can Follow me on Facebook | Google+ | Twitter | Linked In To stay tuned with the topics you love to read from me.

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