Do’s and Don’ts of Outsourcing

Industry News
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Many businesses, regardless of size, are now going into outsourcing due to the benefits it brings to them. For example, cost-cutting and more time to focus on core business functions

Aside from that, outsourcing helps in streamlining a business’ tasks and help facilitate growth. 

Moreover, if you’re thinking of outsourcing your business’ functions, here are some tips for businesses and company owners.

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Do Communicate

Create an effective communication system between your company and the outsourcing firm you’ve employed. When you outsource your business’ tasks to another company, you’re already delegating them and hope they will do well. However, it does not mean you’ll let them fully do everything. 

Just like in any kind of relationship, there should be two-way communication between you and the outsourcing firm. The reason is to be in the know, what are the updates, challenges, areas that resulted in opportunities so you can include them in your whole business strategy. 

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Do Research About the Outsourcing Company You Want to Work With

The outsourcing industry is so huge. In fact, last year, it already reached $92.5 billion. 

However, not all outsourcing companies are the same. As a business, you don’t want to delegate your company’s tasks to a company that produces subpar or weak products. 

That is why, as a company, it is your responsibility to research the company you want to work with. 

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Do Outsource Non-Core Tasks

You should outsource your company’s non-core tasks. Non- core tasks such as human resources, logistics, data processing can be tasking for a company. In addition, it uses a lot of resources and time, despite not generating income. Moreover, outsourcing them would be cheaper than keeping a department or team dedicated to those tasks. The main reason is that you lessen the overhead costs needed to sustain those tasks and positions. 

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Do Not Get the Cheapest Outsourcing Deal

Even if your main reason for outsourcing is to cut costs, don’t take the cheapest deal out there. Do not compromise quality for a lower price. When choosing a company, check first the quality of their work before going through its price. You outsource to make your business life easier, and in the process, you become more competitive in the market. However, getting subpar services won’t help in boosting your competitiveness in the long run. 

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Do Not Micromanage

Open your communication with the outsourcing firm and discuss better ways to make your business better. However, don’t micromanage. Once you micromanage, you’re already defeating the purpose of why you have outsourced your company’s functions. That is why creating a good plan and a high-level contract is crucial once you’ve decided to work with another company.