A growing popularity of outsourcing and its numerous advantages, encourage new companies to use this business model. In order to fully exploit the potential of this solution, you should prepare a detailed outsourcing implementation plan. So what to do to make outsourcing bring the expected results? Read our article and follow 6 steps to building a successful outsourcing strategy.
Successful outsourcing strategy – table of contents:
- Understand the idea of outsourcing
- Assess your processes
- Outline detailed goals
- Set a project budget
- Mitigate outsourcing risks
- Choose an outsourcing company
- Outsourcing strategy – summary
Understand the idea of outsourcing
The first step to preparing your business for outsourcing is to understand what it really is. Reading its definition is not enough. It is necessary to understand the idea of the concept and how your company might benefit from it. We have thoroughly described this topic in the following article: 4 reasons why outsourcing is a growing trend. It will help you realize what outsourcing is and learn more about its advantages.
Assess your processes
The next step is a detailed analysis of your business processes. Thanks to it, you will be able to verify how much time they take and how much they cost. This will provide a basis for developing a profit and loss statement related to changing the company’s current strategy and moving to a new business model. This analysis will also be a good indicator which outsourcing company will be best to use in terms of profitability.
Outline detailed goals
Another important step in your successful outsourcing strategy is defining detailed objectives which you would like to reach using the outsourcing business model. Setting goals will help you determine which tasks should be delegated to external companies, and which of them should be performed within the organization. With your goals clearly defined, you’re more likely to save valuable time and energy.
Set a project budget
Setting a budget that you are able to allocate for outsourcing is a key point in your successful outsourcing strategy. In the first place, you need to plan how much you money you can spend on the implementation of outsourcing services. Plannning monthly or yearly budgets, you should take into account the cost of performing a given task internally, and compare it to the cost that would be incurred by the company if it was delegated to an external provider.
Mitigate outsourcing risks
Apart from obvious advantages of outsourcing, you should also pay attention to the risks related to it. One of them are the hidden costs of outsourcing. In order to prevent them, you should clearly define a framework for cooperation, and all the detailed terms and conditions of outsourcing services along with their costs should be described in a separate agreement.
The contract between two companies should contain information about what services may involve additional fees that can’t be determined at the beginning of the cooperation, as well as how much they will be. Another risk associated with outsourcing may also be the quality of provided services. This risk can be significantly reduced by periodic control of their execution, as well as audits in the companies performing specific services for you. In this way you will have a greater control over the entire process.
Choose an outsourcing company
The last step is choosing a provider which will carry out outsourcing services for you. In order to select the right offer, you can read reviews on previous cooperation with other businesses. These reviews are very important as they might help you decide whether to sign the contract or look for a competing company. It is crucial to assess the work culture of the outsourcing company and how it will align with your company’s own culture. Getting to know how the company manages its teams will help you determine whether they will work well with your organization.
Outsourcing strategy – summary
If it’s well-prepared, an outsourcing strategy can open up several business opportunities and bring outstanding results. Before you choose the right company to provide you with their services, follow the above-listed outsourcing strategy steps. With thorough planning and guidance, the outsourcing team can really help you meet and exceed your customers’ expectations.