As a business owner, you always look for ways to scale and grow your business. As your business grows, so are the demands. Make sure that you have enough resources to keep up with the demand. The last thing you would want to be is in a situation where you need to turn down clients because you can’t keep up.
This is where outsourcing comes in. It is a solution for non-core functions that a company couldn’t or doesn’t want to handle itself. If you’re interested in getting these solutions for your business, these factors to consider when outsourcing will guide you.
What is outsourcing?
By definition, it is a practice of hiring a party, be it an individual or a team, outside a company to perform services that your in-house employees are traditionally doing.
Outsourcing was first known as a business strategy in 1989, and since then, it has become an integral part of business economics and management.
In 2021, the global business process outsourcing market is valued at $268 billion and is estimated to grow and be worth around $577 billion by 2030.
Advantages of outsourcing
So why do we have this astronomical market size of outsourcing?
Why do businesses outsource instead of hiring in-house employees? Here are some of the reasons:
- Cost efficiency
- Access to global talents
- Ability to focus on core functions
- Gain overall efficiency
- Save on technology and infrastructure costs
What are the factors to consider when outsourcing?
Do not start to outsource without considering these factors:
Compute Your Overall Savings
If your primary reason for outsourcing is cost efficiency, you must take a look at this item first. The project must reduce the overall operational costs, hence improving your net profit. Keep in mind that you are not only paying for the workforce but also the infrastructure and systems.
Make sure you are working with experts. Spend time sitting on a discovery call with your outsourcing partner before closing a deal. Make your research and look for their social proof if you are hiring the company for the first time.
Find a partner that is cheaper than your in-house teams.
Aside from finding an outsourcing partner that can respond promptly to any concerns, it’s also important to set a clear implementation plan. Take time to understand how your outsourcing partner will work alongside your own company’s visions.
Technology and Resources
Let your outsourcing partner know your goals and limitations. Technology and resources must be on top of your considerations to get the best outsourcing partner for your business. Take time to know the tools and processes they’ll use and how they plan to help you achieve your business needs. Make sure that they have the most up-to-date systems and applications to support your business as you scale.
In a Nutshell
Figuring out the best option for your business is all about weighing the benefits against the possible challenges. Once you’re ready, find a potential outsourcing partner with whom you share the same values. That would be enough for a great start.
Voice Ignite is equipped with more than 25 years of experience and can help you along the way.
Schedule a free discovery call today.