Is outsourcing staff the next big thing to your business?
In the recent 2020 global outsourcing survey by Deloitte, 70% of the participating companies cited that cost reduction is their primary objective when outsourcing staff.
This is increasingly critical with the onset of COVID-19, which affected many companies across the globe. Flexibility, speed to market, access to tools and processes, and agility are other objectives cited in the study:
Is outsourcing the next big thing for my business?
While the figures show the compelling benefits of outsourcing staff, you won’t be able to maximise them until you tackle outsourcing in a deeper sense.
One of the essential factors in successful outsourcing is finding the right outsourcing service provider.
But let us begin with the basic but a crucial part to your outsourcing success.
The best approach when outsourcing staff
Outsourcing staff can help you achieve long-term goals. On the other hand, it can be a road block for your business if you are not clear with your objectives.
The first and most important thing to do prior to outsourcing is having a clear understanding of your business objectives.
Depending on your business structure, KPIs must be in place to manage the outsourced functions easily. Outsourcing tasks means having a different team dynamic, so it is crucial to monitor the team’s progress efficiently.
Essential factors when finding the right outsourcing service providers
The truth is, you can find many factors online when finding an outsourcing service provider (OSP). Our years of experience in the industry allowed us to narrow them down into SMART factors.
You need to assess if you need a short-term or a long-term outsourced staff.
Short-term outsourced staff are most ideal if you have time-based projects. If you are planning to outsource a staff who will be an integral part of your business process, a long-term outsourced staff is the best option for you. To identify this, list down the job responsibilities you will delegate.
It is an advantage if the OSP has an hourly-based pricing structure for certain services you need. Accounting and bookkeeping tasks, as well as digital marketing-related projects, are the most common hourly-based outsourced tasks by businesses.
The management structure is a key consideration that is missed out by some businesses. In many cases, business owners switch OSPs because of unresolved management issues.
Aside from reaching a clear agreement between you and the OSP, the management structure must allow you and your outsourced staff voice out concerns with confidence and confidentiality. The management must guide you to transition smoothly, and help your outsourced staff hone their skills.
Application of structured transition
In the 2009 paper entitled Best Practices for Risk Mitigation in Outsourcing Transitions, the participants – who are outsourcing clients – agreed that the transition phase to outsourcing either threatened to derail their relationship or allowed long-term success. They also believed that a structured transition is a key indicator of a good relationship between the client and the outsourcing service provider. This is because of how parties work together through challenges.
Many businesses fall short on the assumption that outsourcing is a process-centric business. Outsourcing is a people-centric business as the morale, retention, and cultural evolution are needed to make the process work.
Support is not only confined in technology systems for data security. It also includes programs established by the management to bridge any possible gaps between the client and the outsourced staff.
For example, a cultural orientation is essential so the client and the outsourced staff will know how to work harmoniously.
Transparency should be at the core of a successful outsourcing relationship. This means, there should be an open communication between you and the outsourcing service provider.
Transparency will not work well if the management structure doesn’t fit your business type or follows a complex process when resolving issues.
When choosing an outsourcing service provider, you may want to ask how they manage and guide staff in meeting their KPIs. It is great if your OSP provides you with your staff’s performance evaluation.
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