Business growth with business outsourcing.......and its advantages....!!

In today's recessionary world a business can survive....and be profitable only with the advent of outsourcing in your business.... So there will be always a doubt as to its profitability it's advantages....it's process ......

    Hence today I have provided details for business outsourcing...how to do business outsourcing, it's advantages also .....have a look upon it... 

Here you go.....

         "The other part of outsourcing is this: it simply says where the work can be done outside better than it can be done inside, we should do it.”

                                    - Alphonso Jackson

Now, How to start outsourcing?

8 outsourcing tips to help you get started

1. know your business objective of outsourcing-is it to reduce cost,generate more revenue or gain a competitive advantage?
2. Identify which of your functions or assignments need outsourcing and rethink why they are best outsourced?
3. Know and identify the current conditions of the area(s) you plan to outsource – costs, outputs, infrastructure etc
4. Ask your contacts as to where to look for an outsourcing partner for the service that you want to outsource – in a particular country / city
5. Identify and contact several outsourcing providers. Negotiate with any or all of them so that you can find the vendor who can perfectly match your requirements
6. Set deadlines to complete discussions and to start outsourcing your work
7. Get your outsourcing contract and other supporting documents and reviewed by a legal counsel. Additionally you can also review your vendors' contracts and other agreements for any discrepancies before you start outsourcing work
8. Review the progress regularly and maintain an open communication channel

          “…It’s in society’s best interests to have the most output produced with the least inputs.”

             -warren buffet.

Quick start outsourcing – 5 questions you can ask potential outsourcing vendors at your first meeting

So you've decided to outsource and are ready to take the plunge. These 5 questions will help you jumpstart your move to making outsourcing work for you:

1. Can you actually do the service? or what service(s) do you provide?

Many a time vendors promise to provide all kinds of services but often lack the necessary expertise in the service that you want to outsource. It becomes therefore important that you verify that the vendors you have chosen have the necessary skills and expertise to carry out your services efficiently.

2. Can you tell me something about your infrastructure – internet and communication systems

While working in a remote environment, communicating quickly and flawlessly can help speed up the project and resolve issues quickly. Check if your vendor has quick and efficient communication lines and has many options to get in touch with them quickly. The last thing you want to happen is your project getting delayed because of a slow internet line.

3. How much do you charge for the service?

Though a basic question, this one will help you know what to expect to pay – if there are a large number of providers. It can also help you tell if there is sense in outsourcing if the cost of doing so is comparable to local conditions.

4. What security measures do you have in place?

Security is perhaps one aspect that many first time outsourcers overlook. However many outsourcing deals have gone bad because security was not given its due. If you are dealing with sensitive information in your outsourcing assignment then it becomes necessary to safeguard them lest they fall in wrong hands. Typically an outsourcing vendor will have security measures such as systems security, firewalls, and confidentiality agreements with staff, among others. It is always good to insist the safeguards an outsourcing company has in place.

5. Do you have happy customers and references?

Often one of the easiest ways to judge a vendor is to know their track record with providing outsourced services. If they have a good record with keeping their customers happy then you can add them to your shortlist while compromising other drawbacks they may be having.

For the last couple of years we have seen start-up companies that go from scratch to major leagues in less time than it used to take. Besides the big changes in capital investments rules, it seems they are using the money smarter to growth their business; not only by focusing on their main tasks, which is what they do best, but also by hiring specialized outsourcing services to make the best out of all the other business components that they are not part of their core business.

These are some of the common services that a modern company can outsource:

• IT services
• Legal services
• Recruitment
• Customer support
• Manufacturing

Outsourcing delicate parts of your business components urges the companies to require special contracts for intellectual property and confidential agreements considerations (NDA). A trustworthy service provider will probably present those documents beforehand as well as a service level agreement (SLA). So the client company will get to know their policies and terms to play safe.

Besides all the common legal cares, the service provider location is highly important to the success of the outsourcing practice. Throughout the last 9 years, I have had the chance to work with IT services providers among many countries, and one of the best cost-effective approaches I had is with the nearshore outsourcing. The nearshore outsourcing is when the service provider is located in a nearby country, maybe sharing a border line or in a similar time zone.

 One more important thing to consider when taking the step of outsourcing part of your business is the language affinity; communication is indispensable to interact efficiently and effectively. More than that, I also think that it is some sort of communication synergy that happens when the outsourced crew has the talent and the right attitude to communicate and commit to the overall goals beyond the expectations and in many cases leading those efforts.

 Then you wonder what would be the actual benefits to rely on outsourcing and externalize part of your business components. Here is the list of what I consider the most relevant advantages of nearshore outsourcing that help you grow your business with ease:

Advantages ofbusiness outsourcing:

• Expertise

Outsourcing service providers specialize in areas that maybe you don’t, or areas that maybe you want to improve or just lower the cost as their knowledge and experience often perform easier and faster. For new companies this is especially advantageous, because they will be exposed to that component provider knowledge where your team can always learn from and internalize whenever you are ready to.

•  Concentrate on your core areas

Focusing on your strengths drives you to better results which have a significantly positive effect on the value that your customers perceive and the overall performance of your company. You will be noticed because of that. Reducing the time you invest in other areas that distract you from your main tasks may soon affect your company traction and growth.

•  Handle risk

Externalizing part of the operations will drag some of the risk out of your hands as you are transferring some of the responsibility in the shoulders of your service provider. This risk will probably be lower based on the provider expertise as well.

•  Reduce cost

Cost is always a key factor no matter if you are a big or small company. Big ones want to reduce cost and perform better to compete. New companies want to do their best with smaller budgets but great aspirations. Outsourcing has proven its point of reducing costs since the means of communication and Internet became widely accessible and more powerful every day. Talent acquisition can be defer or skip strategically lowering the operations costs.

•  More efficiency

Work faster and 24/7 if you want, outsourcing facilitate operations to be performed in parallel allowing the business components work concurrently. Besides the outsourcing vendors are specialists that generally perform better. You will only care about fiscalize and orchestrate the teams to avoid bottlenecks and bust the organization results.

• Location advantage

Getting your services from an adjacent time zone streamlines the management and synchronization of your business components as the interaction happens in real time. Today businesses care about every minute it takes to accomplish every action, so you might keep this in mind when you choose the right vendor for you.

• Flexibility

On demand growth, broader options and customized services are differentiators from old times when contract services used to be tied to long term and fixed agreements. A modern and flexible model of outsourcing services allows you to perform better in dynamic business and aggressive changing markets.

 

Outsourcing nowadays happens in many different levels of the organization’s components and willing to decentralize your operations could be the key to success.