Hiring An Outsourcing Business: Things To Keep In Mind
Every business, just like every single thing in nature, is constantly striving towards one thing – growth. Stagnation is not an option – with fierce competition in almost all areas of business, standing in one place means that you’re actually going backwards and that’s not something you should allow.
Without question, outsourcing has changed the way business is done. The reason behind it is simple – outsourcing is a simple solution to many problems businesses are faced with on a daily basis. For a single project to be completed, it needs to go through several phases, each equally important, if we want the results to be satisfactory. However, it often happens that there’s not a big enough workforce or not enough time to be dedicated to individual phases and that’s exactly why we turn to a brilliant shortcut called outsourcing, because it enables constant expansion.
Another interesting thing about outsourcing is that it’s an excellent attempt at growth hacking. Although growth hacking isn’t something that can be carefully planned with high chances of success, there are ways to increase them by increasing your productivity, which is just another reason to turn to outsourcing. Today, outsourcing is majorly facilitated by the integration of Information Technology with your vendor base, at various levels.
While technology facilitates levels of integration in outsourcing, it introduces challenges of management of outsourcing strategies so that both are well aligned with organizational and information systems.
Why should you outsource work?
This is like asking why countries cooperate by importing and exporting their goods. Let me explain it with a banal example – should people in Scandinavia be deprived of delicious southern fruits just because their land isn’t suitable for their growth? Absolutely not. In the same vein, the whole process of outsourcing is beneficial to both parties included, which makes this win-win solution very tempting.
Naturally, there’s a question of introducing an unknown element to your well-oiled machine, which is the main reason why so many companies avoid this option, but there are legal ways to protect your interests and your business secrets, so there’s really nothing to be worried about. So, when hiring a professional or another business for to work on some of your projects, you’re actually beginning an exchange of goods, which brings me to my next point.
Outsourcing is cheap. By including a new party that will do part of the work for you, you’re actually saving money you’d normally spend on training or hiring a new member or a whole new team. It’s quite simple, really – creating a new section in your company and filling those work positions with trustworthy members is a long process that may not turn out to be a smart business move, and it will drain a significant amount of energy from you. This energy should be directed to the further development of your business. And, one more thing – it will require your time and we’re all aware of how precious that is.
Everything in business is all about the right timing; starting a new project, releasing a new line of products, launching a new marketing campaign and expanding your team. Even the greatest and the most creative strategies can’t reach their full potential when released at the wrong moment. Your target audience is the reason why your business exists.
There’s something similar in Greek mythology and I know that you can identify with it – according to the ancient Greeks, the strength of the gods is equivalent to the strength of their people’s faith. So, if your plans for development aren’t done according to the wishes of your audience, you’re doomed.
When is the right time?
Although outsourcing now seems like an excellent solution, which it genuinely is, it’s not an exit route you should use constantly. Being that it’s potentially risky, outsourcing should be done when there’s a real need for it.
First of all, lack of staff is an obvious reason to start looking for an alternative, such as outsourcing. One golden rule all businesses should stick to, especially when they are young and they yet have to prove their professionalism, is that you mustn’t say no to work. When you’re saturated with impossible deadlines and everyone is working overtime, saying no to a good business opportunity may seem like the only thing to do, but that’s exactly when you should turn to outsourcing; when an offer you can’t refuse comes your way.
As a business leader, you need to have enough time and space to keep your focus. Being overcome by panic because of upcoming projects isn’t good for the overall atmosphere, nor for you individually. The right time to take some tasks off your team’s shoulders and allow them to breath, and the right time to strengthen your own vision is before everyone is at their lowest point, productivity-wise. Draining collective creativity and energy will eventually lead to a lack of enthusiasm and motivation, and that’s obviously one unhealthy business move.
Appreciation is one thing that any member of any professional team in the world responds to, and when people feel appreciated, they will give their maximum and won’t regret a single second of their long working hours. Therefore, providing your team with help when they need it is an efficient motivational method you should apply to the way you lead your business.
What kind of businesses should do this?
A startup, a functional business or a large company – each of them is an equal candidate for hiring an outsourcing business. How come? Well, let’s go back to the beginning; one constant goal that all businesses have in common is expansion. However, that shouldn’t be done at any cost – a good plan for growth needs to be developed in detail, with precise calculations for all potential risks.
Therefore, the fact that a large company is already successful and that they consist of a team of skilled professionals doesn’t mean that they need a sort of refreshment in order to advance and make further progress. One fresh pair of eyes, or several of them as a matter of fact, can make a significant difference not only in small things such as brainstorming, but also in important ones, such as completing a big project successfully.
On the other hand, young businesses and startups both have a very obvious problem when it comes to hiring new people – money. Once again, outsourcing as a solution is beneficial in several ways. First, not saying no to a business opportunity is an obvious one, finishing a certain amount of work in time and within satisfactory levels is another, and creating new business partnerships comes like a cherry on top.
So, there is no regret for missed business opportunities and there’s one more extremely beneficial reason why outsourcing should be viewed as if it were an ace up your sleeve – it helps you beat your competition, and we all find it very clear that that’s one certain way to pave your way to success.
What type of work should be outsourced?
We also mentioned how outsourcing shouldn’t be used as an exit route every time things get a bit difficult and hectic around the office. But how do we tell the difference between times when it’s necessary and times when it’s just an easy way out? As far as experts are concerned, there are three different situations when you shouldn’t give a second thought to hiring an outsourcing business.
If a there’s a section of your business which you deal with on a daily bases and which is highly repetitive and practically mechanic, such as data entry, and which doesn’t require any special set of skills or expertise, hiring a team that will complete this part of the work for you is a no-brainer, really. This will remove a significant number of tasks from your existing team’s plate and it will allow them to focus on other, more important tasks that are crucial for your ongoing projects.
On the other hand, you may be in need of someone with a specific set of skills, but only temporarily. Hiring someone who won’t be of much use during more than half a year will lead to a loss of your money, time and resources, as well as theirs.
And finally, you may need an experienced professional that’s way out of your price range. Their skills and knowledge have been developed and gathered for years and they will want a lot of zeros on their paycheck at the end of the month. Usually, these are the skills of a CEO or a creative director, and their analysis or a precious piece of advice can and should be rented for a short time period via outsourcing.
How to hire an outsourcing business?
Hiring an outsourcing business is exactly the same as making a new business partner, just temporarily. Everything you would do in the process of selecting a new partner can and should be transferred to this particular situation.
Do your research
The great thing about finding the right outsourcing business is that you can do it online. Depending on what work you need done and what range of talents you require, you should do your research thoroughly in order to find a business that’s cut just right, according to your measures. There’s an interesting thing here – you can hire a company for the purpose of hiring an outsourcing business for you if time is of crucial value for you in that particular moment.
Agreement in every term
The next stop is creating a contract that’s beneficial to both parties included. Make sure that you have selected a business with a flexible policy and that you agree with their working mechanism – it’s probably best to find someone similar to you in that matter. By doing this, you’ll be able to find a common tongue with ease and there will be less room for misunderstandings.
Most importantly, make sure that you create a legally binding contract so that you’re completely protected from potential risks, and make sure that your expectations for that certain company are very clearly stated.
Clarity of instructions
This part is a determining factor when it comes to the success of your cooperation. Most businesses who had a lousy experience with hiring an outsourcing company don’t claim that the other party didn’t complete their end of the deal, but say that there were gaps in communication. Therefore, when you finally start working on a project, it’s crucial for you to state your demands clearly and that you give instructions that can’t be misinterpreted. Joining your forces will be difficult in the beginning, and once you get to know each other’s methods, everything will go more smoothly.
In the end, I’d like to emphasize the importance of patience here. Hiring an outsourcing business is an excellent opportunity to tap into a global knowledge base, learn about how others do their business, potentially make a huge step forward, work with people who have different talents and areas of expertise than you and make new friendships. None of these things should be dismissed because of lack of patience or will to make a compromise.
So, my last piece of advice is to be open-minded throughout the whole process, listen to what the other party has to say and create agreements that are beneficial to both businesses. By acting this way, you’ll be able to upgrade your own social skills, enable your team to grow and, who knows – perhaps you decide to expand permanently.
By hiring an outsourcing business, you’re actually opening a new door and new possibilities for expanding your business and growing it into the company you have always wanted to have.