Much has been written about how outsourcing has changed the way business works and how it has helped many companies succeed all over the world. We also often read articles about the factors that businesses must consider before deciding to acquire outsourcing services.
Unfortunately, not all those who have outsourced are successful and oftentimes it’s because they failed to consider other equally important factors that play a significant role in outsourcing success. Some of these considerations are as follows:
Taking the Time to Plan
Some companies become way too excited about outsourcing that they fail to plan properly. Acquiring outsourcing services is not just about writing a contract. It also involves setting clear objectives, writing down achievable goals, developing a strategic action plan and setting expectations between the company and the contractor. Rushing into choosing a contractor can backfire if you do not take the time to study every single thing that goes into the agreement.
Aside from this, there is also a transition period involved. You can’t just expect things to go well immediately. Although you need to give your contractor a bit of leeway, it is necessary for you to take the time to make sure that things are going well before you loosen the reigns.
Focusing on Benefits Instead of Costs
There is no doubt that outsourcing can provide many different benefits to a company. Outsourcing can help cut down costs and increase operational efficiency. However, there are other costs involved as well that many fail to realize early on, such as legal fees and travel expenses among others. Do not expect to achieve your projected savings immediately. It will take time before your projected and actual savings to match, which means you have to be prepared to shell out more within the first few months.
While outsourcing contractors do help businesses achieve greatness, it is important to realize that it is not all about cost cutting. Many outsource majority of their business to cut costs not realizing that they are also sacrificing the benefits of having full-time permanent staff, who are likely to be more loyal and have a deeper understanding for the company and its customers. The key is to learn how to achieve a balance between hiring contractors and keeping some staff in-house.
It is important for companies to give some level of control to their contractors for the latter to perform their job efficiently. However, many make the mistake of relying too much on contractors rather than on their in-house staff that they start losing control of their own business. Maintain control by training your in-house staff to manage your contractors to get the best from them. Having a designated person to manage the outsourcing partnership will likewise help you remain in control of the critical elements of your business.
Managing In-House Staff
Remember that contractors and freelancers are only temporary components in your business. It is your in-house staff who are most likely to stay with you longer and will thus have the ability to grow with the business and train others in the future. It is important for you to give them the proper training not only to do their jobs well but also to adjust to the changes that the company is likely to experience because of the new partnership.
Partnerships all need a lot of hard work to succeed. To make the most of any outsourcing partnership, proper preparation must first take place. By taking into consideration all these important factors, you can avoid many of the common pitfalls involved in outsourcing.