As a company grows, there will often be situations that will challenge it in various areas.
Staffing concerns and financial issues are things that come to mind as problems that can keep a business from succeeding. Thankfully, these issues can be managed with strategies like outsourcing. This practice is an excellent way to offload certain tasks or functions to a dedicated team, allowing you to free up time and resources. In fact, outsourcing can cut labor costs by up to 90%, something many business owners are aware of. More importantly, however, outsourcing can help a company focus on its core competencies.
Financially, outsourcing can be a business’ first big step towards growth. But for the regular entrepreneur on a budget, this can be a difficult decision. Since it comes with its own set of costs and considerations, you need to fully prepare in order to make the decision to outsource more beneficial for your business.
Considering outsourcing soon? Here’s a few points to remember when planning the budget and preparing for an outsourcing project.
1. Determine the tasks you need to outsource
The process begins by determining when and what processes need remote support. Although there is no definite no definite period for when the business should start to outsource, there are indicators that should signify when to consider it: this can be an increase in workload, or a glaring lack of specialized support.
Once you’re ready, pinpoint the tasks that are ideal for outsourcing. Administrative duties, accounting, customer service, payroll, and marketing are all prime areas that can be delegated to an offshore team. By identifying these tasks and how much headcount is needed, you can then determine how much they will cost.
2. Consider the costs and savings
Once you’ve pinpointed the pain points, it’s time to get down to the numbers. During this stage, it will be helpful to determine how many people you need versus the resources you have available to you. Compare costs between outsourcing and in-house hiring; more often than not, outsourcing comes out lighter on the wallet.
3. Consider outsourcing providers with high service quality
When outsourcing, it’s important to consider the quality of service you will receive. While cost-effectiveness is crucial, ensuring the work you receive meets your standards and expectations is just as important. That in mind, you will have to opt for a higher-quality provider with a solid track record. That can come with a premium, so be sure to account for that in your budget, as well.
Setting expectations with your outsourcing partner
Your outsourcing project can only be successful when you and your outsourcing provider are on the same page. Aside from setting a budget, you need to lay the groundwork with your provider, and set clear and concise expectations with them.
- Well-Defined Contracts: Agree to a well-made contract specifying task details, deadlines, quality expectations, and of course, costs.
- Performance Metrics: Establish realistic Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) to help regularly evaluate the performance of your outsourced team.
- Monitoring System: Implement a reliable monitoring and reporting system to keep track of the work your outsourced team puts out.
- Regular Contract Review: Keep your contracts up-to-date, reflecting changes in requirements, expectations, and market conditions.
- Full Transparency: Make sure to be informed on the immediate fees your outsourcing partner will charge you.
Take note of the points above to make prepping for an outsourcing project easier, making it more worthwhile and impactful for your company. Partner with an exceptional outsourcing provider like FGC+ as well to experience quality and efficiency. Explore our website to learn more: www.fgcplus.com