Outsourcing is a great way to help your business as it progresses through its various growth stages. Indeed, many of the biggest global businesses outsource their work.

Successful outsourcing is built on establishing a healthy balance between internal staff and external resources. The strategy can be cost-effective, help scale your business and, when it’s done right, drive consistent growth and productivity.

However, so many businesses forget the basics when looking to outsource. Here are seven factors you need to consider when outsourcing:

  1. Select the right Management Team – You need a manager to supervise and take care of your outsourced team, so selecting the right person is extremely important. The ideal person will be reliable, have leadership and people skills, be familiar with company operations and the appropriate experience. Taking the time to assess who that will be is one of the best business decisions you ever make!

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  1. Consider the Pricing – Of course, pricing is a vital factor to consider when outsourcing. Businesses want to get the best value for money, but choosing the cheapest vendor isn’t always the right decision. Compare prices offered by different vendors and fully assess their services – do they have the sector experience you’re looking for, for example? Don’t forget, the aim is to reduce your capital spend in hiring staff and equipment while seamlessly adding to the high quality and quantity of work undertaken by your existing teams.
  2. Technology and Resources – Get to know the technology and resources the vendor will use for the project. Ask questions to evaluate their competencies and management skills. Is their technical infrastructure fit for purpose, and a good fit for how you operate? The one that can handle your business processes will be the one which invests in the latest technology and supporting resources.

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  1. Scalability – When outsourcing, flexibility is a vital factor to consider. The provider should be able to grow the project for you in accordance with your company’s needs. Do they have the capacity to meet your needs now and in the future? As the volume of work increases, are they positioned to adapt and resource in the right areas?
  2. Ability to Meet Deadlines – Timesaving is so important, as is the ability to meet deadlines. Delays can make or break partnerships and relationships. Find out as much as you can about the vendor’s history regarding commitment to meeting deadlines on similar projects. They should be able to meet deadlines while maintaining the highest levels of quality and consistency.
  3. Location – Location is something many businesses tend to overlook. Think about the region where you want to outsource and how time zone differences, for example, can benefit your traditional operating hours. Will you ‘follow the sun’ or adopt a different approach? Also consider how the local laws, cultural traditions, and language can affect output.
  4. Communication – To be able to comprehend and respond to your business requirements, the vendor must have excellent communication and language skills. If you are collaborating with an offshore team which communicates in multiple languages, make sure your vendor can respond to enquiries and issues quickly and clearly. This also helps develop a culture of trust and openness for the company and its stakeholders.

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Outsourcing enables companies to focus on the primary functions while ensuring that the ‘less important’ tasks in the company can get done. In line with that, selecting the right outsourcing provider is one of the significant decisions that you will make for your business. Choosing one that not only meets but exceeds your needs will have a tremendous impact on the productivity, and profitability of the business.


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