BUSINESS OUTSOURCING TIPS
The global economic environment is caught up with an interesting trend
known as outsourcing. Business outsourcing covers different areas of a
company or organization’s business activities and operations.
Outsourcing has completely changed the mode of operating business in
this present dispensation.
Basically, there is in-country outsourcing and offshore outsourcing.
When a company outsources part of its business activities to an
outsourcing contractor in the same country where the business is
residing, this is called in-country outsourcing. But, when the
outsourcing contractor resides in another part of the world other than
the country where the outsourced company resides, this is known as
offshore outsourcing. Business IT is one of the most outsourced
operations or functions, both in-country and offshore.
Why Should You Outsource Your Business Operations
1. It can be cost-effective
Business outsourcing can be cost-effective sometimes compared to
carrying out the functions in-house. The overall cost of certain areas
of business operations such as IT Management can be greatly reduced by
embarking on outsourcing. Generally, areas covered under cost-savings
include re-pricing, scope reduction, cost-restructuring,
re-negotiation as well as quality levels definitions.
2. Access to Talent
An organization or company gains access to a larger talent pool when
it chooses business outsourcing. Such company would also become a
beneficiary of sustainable source of skills, particularly in IT,
engineering as well as science. This is a big plus to a company that
has limited or less knowledge and skill set in these specified areas.
So, a company needs not to lag in certain areas just because it does
not have the required manpower skills or adequate facilities in such
area. Outsourcing has made everything possible for a business or
organization.
3. Liability Shift
As a company outsources specific business processes or functions that
are not within its core expertise, it indirectly shifts or transfers
part of the company’s liability to the outsourcing contractor. Thus,
the outsourcing company bears part or whole responsibility of any
undesirable out come. Well, it all depends on the terms of the
contract that is binding on both parties. Now, when embarking on
business outsourcing, ensure that sufficient research is carried out
on the outsourcing contractor. Some of the things you should research
about the company include;
Proof of required skill possession in the intended business operation
or function. An outsourcing company that is specialized in IT
outsourcing may not perform satisfactorily in HR outsourcing, except
it has multi-skilled staff. It is really more efficient to contract a
company that has proven skills in the business area you need
outsourced.
Check the portfolio: the portfolio should contain certifications in
specific outsourcing areas as well as general outsourcing
certifications. It should also contain proof of membership to relevant
outsourcing body, either locally or internationally. Also, references
of past projects and their contacts should be part of the portfolio of
a competent business outsourcing vendor.
Business outsourcing will help your business in several areas,
including gaining a competitive edge in the present harsh business
environment.
Daven Michaels is a New York Times Best Selling Author and CEO of
premiere global outsourcing company, 123Employee. The company employs
hundreds of young bright individuals on three continents. His
International event, Beyond Marketing Live! inspires entrepreneurs to
build & grow their business with revolutionary new theories and
systems allowing them to design the business and personal lifestyle of
their dreams.
