As new technologies hit the market, any successful business needs to stay flexible and responsive to meet the latest market demands and also maintain a competitive advantage. One of the clear signs that your business is successful is reaching a point where you can’t do all things by yourself. Today, many are relying on offshore outsourcing while implementing various innovative approaches.
However, hiring an offshore outsourcing company can be a daunting task as there are a number of factors that you have to consider to ensure you get the desired results for your business. A good outsourcing partner will play a key role in enabling your business to hit your financial targets and generate your desired revenue.
In this article, we look at the seven lessons on offshore outsourcing for your successful business.
Why Is Offshore Outsourcing Good?
Offshore outsourcing offers many benefits to businesses, including providing access to high-quality tools and resources, enhanced productivity, and lower cost. When it is done right, outsourcing provides an excellent way to run your business by allowing it to maintain its competitive edge and the operations to run efficiently.
When Is the Right Time to Outsource?
The success of any business depends on the decisions that you make along the way. Consequently, understanding when is the right time to outsource the services of others to boost your business is essential. If your business is handling any of the following challenges, it is the best time to consider outsourcing.
- It wastes valuable energy and time
- The task is not the main source of competitive success or generating profits
- It lacks competitive success or generating profits
- The job is a temporary need or one that recurs with time
- The task can be done in-house at a lower cost but drains your resources and would be better if used elsewhere
- The job requires specialized skills that make it impractical for you to hire a regular person to handle it
- The task is less expensive when done by your outsourcing partner
- It is a task that most employees do not enjoy doing
However, there are many reasons why you should not outsource your business operations in a given period since the process is aimed at only making your business more profitable and productive. You should not outsource if the task involved is a primary activity in your organization or it’s the center of its business operations. For instance, if your company specializes in web development, you should avoid outsourcing on web development since it is the foundation of the business.
What are the Ideal Tasks to Outsource?
Today, it is possible to outsource almost any task, but there are some that offer more benefits and come with fewer risks when done elsewhere. There are some outsource you can use:
- Customer Support
Customer support is among the ideal tasks to outsource in any business these days. While the cost of providing office space, employing and training in-house, and paying taxes could be quite high, outsourcing a call center in developing countries like China, India, the Philippines, and Brazil can be relatively affordable.
- Data Entry
Data entry is another ideal task to outsource, as long as you give clear accuracy, instructions, and deadlines. Routine tasks on data entry like cataloging, scanning, indexing, and order processing would be better if done elsewhere to create more time for the in-house team to focus on primary tasks.
- Web Design
Web design is not a simple task as it involves creativity, but some of the functions in this field are frequently outsourced. However, if the tasks on web design require significant innovation and creativity, it is advisable to assign them to an in-house expert.
- Email Support
When it comes to any successful business, responding to emails from customers and other business partners can be time-consuming and exhausting. Therefore, email support is one of the ideal tasks to outsource if you want to free up more time for your team to handle other business functions.
This is another ideal task to outsource since it’s a well-adapted function that involves standardized methodology across the world. However, we can’t ignore the sensitive nature of the details you have to share with an outsider, which means that you have to find a qualified and competent accounting professional team.
- Social Media Management
With more and more people in society embracing the benefits of social media in promoting businesses and shopping online, creating a strong presence on these outlets can greatly boost your business operations. However, social media management can be time-consuming and also may fall away from your area of expertise. Hiring the services of a competent individual to create a profile, set up guidelines, plan content, constantly moderate, monitor, and moderate your business while building its image is extremely important.
- Virtual Assistant
Virtual assistants play a key role in ensuring that your business hits its target in quarterly revenues. A reliable virtual assistant will help maintain your schedule, set up an interview, and other aspects if you find these tasks challenging or time-consuming.
Facing Common Challenges in Offshore Outsourcing
Just like other tasks, trying out any process for the first time can be quite a challenge. Offshore outsourcing offers many benefits, but it is important to understand that it also comes with its own share of challenges that may not be obvious to solve. If you choose the right outsourcing partner and take time to study the possible drawbacks carefully.
Post-contract process challenges
The challenge often happens when you fail to discuss the entire process clearly and properly. Remember, when outsourcing, you should not overlook or miss many factors if you want the whole process to be a success. To solve this issue, you should observe and discuss contractual, financial, and service delivery issues with the clients and service providers.
Poor Knowledge Transfer and Loss of Valuable Talent
Outsourcing is a huge step in the right direction for any business, but if not done in the right way, it might create uncertainty for existing employees and make them consider seeking job opportunities elsewhere. Moreover, it might also cause the staff to feel demotivated, lowering efficiency in their service delivery.
To get over this hurdle, you should ensure that you address your contractors and employees before implementing any task on offshore outsourcing. Besides, it is also wise to come up with retention policies that address their concerns.
Misunderstanding among the Parties Involved
When it comes to managing the implementation of the activities and ongoing business operations, you should ensure that all the teams (including teams from both service providers and clients) are working for the common goals. In some cases, both parties will interpret the engagement differently, which could put you and your business in a hard position. Nevertheless, this challenge can be addressed if you and your service provider choose to be proactive in communicating what is contained in the contract.
Resistance to Change and New Methods
For any business to be successful and also remain at the top in the competitive market, it has to embrace change in various areas, including staffing, process, behavior, and technology. The service provider does not always hold the key to the end result of many outsourcing services.
Therefore, the end-users can be the obstacle to achieving successful business by delaying their responsibilities and failing to comply with the set goals and requirements. To avoid this, you can remind your service provider that providing quality services remains their responsibility if you encounter a resistant end-user.
Offshore outsourcing offers a cost-effective and efficient way to relieve your in-house staff the burden of handling repetitive tasks. Moreover, it also helps in risk distribution and increasing your business productivity by tapping into the best talent in the job market in other locations. We believe that these lessons will help you to find a reliable outsourcing company and undergo the entire process with little or no risks or challenges.