Outsourcing means getting someone to take part of the work
you need to do to get your business running smoothly out of your hands.
Outsourcing works best in many cases when you consider the relationship as some
form of partnership. Thus you stand a good chance of getting the most out of
outsourcing when both parties have very similar vision and similar work commitmentand ethics.
To get this right therefore, certain factors need to be
taken into serious consideration when trying to identify the right company to
outsource to. Such factors should include among others
Goals
You should have clearly defined goals spelling clearly what
you are looking for and what you aim to achieve through outsourcing. These
goals should clearly fit into your current and future plans for the business
Identify your principal and peripheral activities
To get the best out of outsourcing, it is necessary to
identify what your core activities are. For example, as a car dealership, your
core activities will probably be selling cars, maintenance of cars and possibly
offering car spares for sale in addition. These are the activities within which
your strength lie and these are what you should concentrate your efforts on
With such a company, cleaning and valeting of cars, cleaningand maintenance of your premises, ordering and supplying of such sundries,
collecting of cars from customers and delivering of cars to customers may all
be regarded as peripheral activities. These could be your weaknesses and
therefore are the activities that you should aim to outsource.
Clearly stated objectives
To enable both parties to get the best out of the
relationship, it is very vital to have your objectives stated clearly. This
could be achieved by creating a detailed proposal for outsourcing. The proposal
should clearly identify your aims and also your requirements. It should alsoidentify your expectations, your timelines and also your budget
Background information and checks
Outsourcing implies opening up part of your business activities
to an outside company. Trust is a very important factor for success. It is
therefore very necessary to ensure that you are not outsourcing to a dodgy
company. An initial thorough background check of prospective companies is
therefore very necessary. This will help you to weed out the bad ones.
In some cases, it might be necessary to use the services of
a consultant to do this if you are not confident of carrying these checks out yourself.
This is very necessary in situation where you are looking to outsource over aconsiderably long period, when there is some sensitive information or
activities involved or when the project value is quite high
To get the most from outsourcing, it might be best to
interview at least 3 companies, unless you have a very reason to do otherwise.
For example, if you decide to outsource to a company you have worked with
before or have been strongly recommended by a partner, associate, etc. Ensure you
run checks on all references and crosscheck any materials they present. Where
necessary arrange to meet some of their key personnel. These will all help to
establish credibility and competence
Cost benefit analysis
Outsourcing means getting the best talent at a cost lower
than what it will cost you to employ. Thus it is very necessary to analyse the
cost and benefits into detail to ensure that it is the best route to take. The
analysis should not only look at the financial implications, but should also
look at the non-financial cost as well.
Ask questions … and many questions
- How well established is the company?
- What is their status?
- What are their work ethics?
- Who are some of their past clients?
- What does the future hold for them?
- Can they deliver? Etc.
These questions and many others
are very necessary depending on the nature and value of the contract
The success of any outsourcing venture is the ability toidentify the right company that will help your company to achieve its goals and
objectives, work alongside with you and contribute positively to your growth
and achievements. Identifying such a company could be tricky, but could be done
when the right procedures are followed.
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