9 ways to effectively outsource business processes
People have different reasons why they choose to outsource. Some companies outsource to reduce operational costs while other outsource operations that are too complex for their employees. Getting a third party to tackle some of your operations is simple since they are available all over.
However, before getting someone to run some of your operations remember that you have to handover some confidential information to them. If your confidential information is leaked it could have a massive impact on your competitors, clients, and even shareholders. It’s therefore important that your business processes are handled well if they are outsourced. Here are some methods you should use to improve the effectiveness of your outsourcing.
Here are some methods you should use to improve the effectiveness of your outsourcing.
Make a list of all the services you want to outsource
Start by deciding the services you want to outsource. This could be your call center services, invoicing, digital marketing, IT support, payroll, and many more. Having a list makes things clear since it helps you consult more on the items you need to outsource and the ones that should be managed by you. A list also makes you identify the best company to offer such services. This way you can decide whether to outsource one company for all the services or different companies for each service.
Consider the relevant providers
Have a list of all providers of the services you want to outsource. This way you will find it easy to check their track record. You will be able to see their reviews and a list of clients they have worked with before. This is a very important step. Do not ignore any potential company, After considering all, choose the best three. In comparing you also need to consider the cost aspect. In addition, go through the terms and conditions of all the companies you are considering working with.
Have a trial run - Don’t settle on a company simply because their terms are so good on paper. Therefore have a train run with the companies you have settled on. In the trial run, you will be able to see whether the company you have outsourced has the capability to complete what you are hiring them to do. In addition, you will also see whether they will beat the deadlines. At the end of the trial period, you will see whether there are any potential problems. If you find any problems iron them out with the company or decide to go with a different one. If the company completes the trial run then choose them to offer the services for a while.
Have a monitoring team
After outsourcing a company doesn't relax and leave everything to them. Set have a team to monitor their operations and liaise with them on any improvements or problems. The team will be responsible for all reports submitted by the outsourced company, the team will also follow up on missed deadlines and deal with all issues relating to the outsourced company. When choosing a monitoring team, have some members of the senior management in the team.
Plan for transition early enough
Before outsourcing ensure that all transition processes are ready. It would make no sense to hire a service provider and then keep them waiting for several months as you prepare to handover the services to them. Planning for transition early gives you time to know which employees will be moved to new departments, and which employees will become redundant. Early transition preparation also paves the way for training. You will plan to train employees of the outsourced company early enough to be aware of the company practices and also the company culture.
Have proper documentation
All agreements between you and the company you are outsourcing must be in writing. Document everything even things you consider minor. The agreement should have clear lines on who is responsible for which services and when. You must know that outsourcing can at times lead to legal conflicts. Documentation will help you solve legal problems easier since all agreements are in place and both parties know their role and mandate.
Track all performance reviews
Have Key Performance Indicators or even metrics to help you with an assessment. This will make your work easier when reviewing the performance of the outsourced company. If you find any problem during the review conduct the service provider for it to be solved immediately. Do not allow friendship to come in between you and your service provider.
Transfer accountability and responsibility of the outsourced services to the service provider. Let the service provider handle all the duties you hired them to do. Your work should remain evaluation and not helping them in completing their tasks. Transferring accountability is important because it makes the incoming company more responsible. It also gives them confidence in providing the services since you are not interfering with their work.
Have regular communication with your service provider. Do not wait until there are serious issues to communicate with them. Regular communication minimizes interruptions and helps in the solving of issues early enough.
Outsourcing an experienced ad dedicated service provider can be a game-changer for your company. It helps you in minimizing costs while maximizing output. Outsourcing however requires a lot of monitoring and oversight.
Having clear duties spelled out to the company you are outsourcing is important since it helps both parties to be responsible for their actions. While outsourcing a company, go for one that you believe will deliver the best service.