Six Steps to a Better and Smarter Outsourcing
With the uncertainty and quick pace in most industries, it is imperative for companies to swiftly adapt
to changes and expand and downsize their business processes when necessary. This is the reason why
a number of firms, both small and big, are turning to outsourcing to keep up with the times. They have
realized that outsourcing allowed them to focus on the most important aspects of their businesses by
freeing their hands from tasks that stall the growth of the company.
Although outsourcing makes a powerful impact on the growth, productivity and bottom lines of
businesses, taking the first steps toward the program is something that should not be taken lightly. It
demands careful considerations of a variety of factors that could directly affect the business. Thus,
when it is time to outsource, there are some important steps to take to smartly and successfully hand
over some of the business’s reins to an external agency.
Create a clear roadmap of the strategy
Keep in mind that the decision to outsource will not only affect one aspect of the business but possibly
its entirety. That said, it is vital that decision-makers have a well-thought plan about what goes where
and who will be in charge of specific tasks. Doing so reduces the risk of failure and at the same time
allows the company and its people to have shared goals.
Determine if outsourcing is indeed the right solution
This is the right time to decide if farming out some of the business processes is indeed a viable solution
for the organization. This is also the opportunity to know how the strategy will be incorporated into the
business and how existing or in-house staff will function once the process commences.
Find the best contractor
Working with the right provider is a critical aspect of outsourcing as they will be the ones who will be
working on the business processes of the company. As such, for those who have decided to outsource,
thorough research is imperative to get a contractor or set of contractors that have the experience in the
specific tasks or processes that the organization had decided to outsource.
Decide on the partnership structure
After the provider has been found, the work is not over yet. The company should be able to determine
whether to have a fixed-price contract with the provider or more of a partnership structure wherein both
parties share the risks, rewards, and incentives. Knowing this will enable the company and the provider
to understand what to expect out of the program.
Pay attention to the infrastructure
In order for the strategy to be implemented effectively, the company should have a clear idea of whether
there should be changes in their existing infrastructures, if they need new ones or if they have to use
the outsourcer’s system. Strategize for smooth transition
The transition of processes from the company to the external agency should be free of hassles to avoid
problems later on. Laws governing the transfer of undertakings should be carefully considered so as to
prevent issues from arising.
Conduct close monitoring
Once the actual outsourcing process begins, there should be periodic monitoring of the program from
the very beginning. The provider’s performance should also be observed to ensure that they are doing
their jobs correctly.
