Outsourcing for Better Business 
Maybe you have regular writing projects…but not quite enough to hire a copywriter. Or perhaps you don’t feel entirely qualified to manage all your business’ HR needs. Or maybe you need IT help, but can’t afford the hefty price tag of a full-time techie. Sounds like it’s time to consider outsourcing.
Outsourcing is delegating a business process to an external source that is then responsible for running and maintaining the process, for a fee.
In official terms, outsourcing is delegating a business process to an external source that is then responsible for running and maintaining the process, for a fee. In layman’s terms, it’s sending work out of the company rather than hiring someone internally. It is also rapidly becoming the small business owner’s first choice in better management.
Advantages and Disadvantages of Sending Work out
By allocating work out of the company, you and your employees can fine tune and streamline your focus on core activities. As an added benefit, the service you outsource will likely improve, because you’ll hire an expert in that particular field and not overextend internal resources.
Two of the biggest benefits of outsourcing, however, are flexibility and cost-savings. If you give specific tasks or projects to a vendor, you have little commitment for the future—unlike if you were to hire a new employee and then had to pare down their hours. And because you are hiring on a per-project or per-hour basis, you save money, compared to hiring a new employee.
When done poorly, outsourcing can have its disadvantages, most of which are caused by weak communication. Rather than gaining control of the process through giving adequate direction and proper management, you may lose some control. Your in-house employees may not respond well to having some work outsourced and the quality or their work may suffer. Often, this becomes a risk when outsourcing HR work, positions that in some businesses require relationships and regular interactions with the employees.
You need to build trust in your vendor and communicate your needs and goals clearly.
The biggest hurtle for business owners in outsourcing is putting their business in someone else’s hands. To do so, you need to build trust in your vendor and communicate your needs and goals clearly. Your vendor may not share your focus on the customer and may instead concentrate on the product or process. When handled appropriately, this could be managed in a discussion. Handled poorly, it could result in disaster.
What to Outsource
Although, conceivably, there aren’t limits on what services and processes you can outsource, the typical ones include:
- Payroll (Handle taxes and employee checks)
- HR management (Recruiting, hiring, reviews, and firing)
- Marketing
- Web design & maintenance
- IT maintenance
- Manufacturing
- Accounts
- Switch board (telephone answering)
- Writing or editing
Finding an Outsource Partner
The two most important factors in a successful outsourcing relationship are trust and security.
The two most important factors in a successful outsourcing relationship are trust and security. Without them, the relationship is destined for failure. With that said, it’s crucial that you take the time and energy to find the perfect partner. Find out who their current/past clients are so that you can obtain references on the quality of service. Don’t be afraid to ask hard questions and, without question, check their references. Finally, ensure that the service provider has long-term financial stability by reviewing a company report or bank reference.
Once you’ve found that perfect partner, negotiate any and all issues. Determine how much control they will have over their designated processes. Map out expectations of both parties and draw up a contract that ensures that they are responsible for providing service quality.
The Long Haul
To truly be effective, businesses should consider outsourcing as a long-term solution. Together, you can build a continued business relationship that will offer long-term benefits to your customers. For your business, it can mean long-term savings and a source of potential growth.
