How To Create Your Outsourcing Strategy
Outsourcing is not as complicated as we need to make it out to be. When we aren’t able to do a job or don’t have the time, we pay someone else to do it for us. This could be to paint out home, look after our children, do the ironing. The same theory is applied to companies. Outsourcing allows companies to access talent that they may not have in their in-house team or when there is not enough time to complete projects themselves. The only difference is there is often more factors to consider.
No one company is the same and therefore, outsourcing strategies can look completely different from one company to the next. Despite this, there are still certain things that decision-makers should consider while creating an outsourcing plan.
What Is Your Company Already Outsourcing?
Our modern idea of outsourcing may encourage us to miss the services that are already being outsourced within the company. Perhaps part of your IT networks like cloud solutions are outsourced, copy centers or mailrooms. Understanding what has been and is being outsourced will help you to decide what other business areas can be outsourced.
Defining Your Objectives
Your company objectives will have to be outlined as part of creating your strategy. Are you looking to reduce your operational costs, increase skills, speed up production? Knowing what your objectives are will help you to decide what to outsource and to who.
Input from Key Players
While you probably take pride in knowing everything about your company, it is almost impossible to know absolutely everything, that’s why we hire experts. Now is the time to discuss your outsourcing objectives with the experts in your team to gain their valuable input.
Deciding on the Projects to Be Outsourced
Again, there is no one set of rules for this because it will depend on the objectives you and your team have worked on. Key things to include in your decision will be:
- How your company has previously worked with outside workers, temporary staff, contractors. Along with your Project Manager, cover any issues that the company faced and how you can prevent them going forward.
- Does your team have the knowledge and expertise to carry out the project? Is your manager capable of running the project or do you not have a project manager?
- Is your team able to deliver the quality of product that you expect? You should be taking feedback from your customers regarding the quality of the product and the quality of the service and see how both can be enhanced.
- Costing is obviously going to play a key factor in your outsourcing strategy. You need to have accurate reports about your company’s operational costs, how they compare to your competition’s costs and where you might be able to reduce costs. Don’t forget that high costs don’t equate to a high-quality service.
- Scaling requires you to get an overview of your whole company and examine what projects you have and what new projects you will receive in the future. It is easier to outsource one large project than multiple smaller ones. The company you choose for your first project will set the tone for the rest.
- Security is absolutely essential. You must ensure that you are selecting an outsourcing provider who is able to match or even better the security you require. You have to consider the regulations and compliance that are required depending on your project. Industry standards may limit your outsourcing choices.
- With the above factors, you can prioritize projects based on their outsourcing value. Logically, this will depend on accurate information and the longer the decision takes, the more complex it may become due to updating the information for each factor.
- Communicate your decisions with our employees. When one department knows you are planning to outsource, others will soon find out. To make sure that employees at all levels are not just listening to rumors, decide on the best way to communicate your decisions with everyone involved in the company.
Implementing Your Outsourcing Strategy
Now that the planning stage is complete, you can begin the exciting stage of sourcing your outsourcing provider. Before any final decisions are made and a contract is signed, confirm your data and communicate the full plan with potential vendors. All of this will be made much easier when you know you can rely on your outsourcing strategy.
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