These days, more and more small businesses are outsourcing their business operations due to technology advancements. Now, professionals are able to work virtually from anywhere in the world. Talent has never been so accessible. At first, outsourcing business operations may be daunting, but determining how to build the company with help from outsourcing pros could provide increased efficiencies.
Businessmen have long seen sourcing as a strategy reserved for large firms, but technology has made it more accessible to small organizations. Furthermore, for small firms, it has made a powerful impact on their productivity, growth and bottom lines. The right time to outsource varies from one company to the other. Some organizations have in-house staff that would handle daily tasks, but may require outside help for new projects which do not warrant another full-time staff.
Nowadays, nearly any task could be outsourced, with a lot of qualified professionals leaving the corporate world to work as contractors or freelancers. Nevertheless, it does not mean that just because a task could be outsourced, one should. It is not a good idea to outsource something one does not want to do. At times, there are things that one does not want to do, but are important the organization's core. Before choosing which tasks to transfer to a third party vendor, take a closer look at the business and determine its values and strengths.
The kinds of jobs which are best outsourced fall into three general categories. These include highly skilled or executive expertise, extremely repetitive tasks and specialized knowledge. An example of a highly skilled/executive expertise is requiring to pay a CFO's salary but could have a CFO-level person to come in a few times every month to provide financial analysis and make sure the bookkeeper is handling the books well. Tasks that are extremely repetitive include data entry, accounts payable and shipping inventory. Specialized knowledge could be IT support for the accounting system of the company. A firm may be unable to afford or require a full-time IT person, thus it is easier to opt for an outsourced vendor with the right set of skills.
Finding the right vendor is highly important. Recommendations from friends or acquaintances are preferable, but in the absence of these, placing ads on a work-at-home site and submitting for proposals would suffice. After finding the right provider, it is good to put a little bit of time creating a specific contract which exactly outlines the performance expected. Incentives could be used for motivating an outsourcer to focus on what is most important instead of their own preferences or assumptions.
Communicating the expectations and the steps included in the job should be done in a clear manner. Do not assume that contractors are thinking what the company may be thinking. Even if expectations are stated clearly, there would be a learning curve on the side of the provider. However, it would get better and one could have the freedom to focus on more vital tasks. One final responsibility would be to step back, relinquish control and allow the team to do their job they are hired to do. There must be a measure of trust in order to succeed in the endeavor.
Businessmen have long seen sourcing as a strategy reserved for large firms, but technology has made it more accessible to small organizations. Furthermore, for small firms, it has made a powerful impact on their productivity, growth and bottom lines. The right time to outsource varies from one company to the other. Some organizations have in-house staff that would handle daily tasks, but may require outside help for new projects which do not warrant another full-time staff.
Nowadays, nearly any task could be outsourced, with a lot of qualified professionals leaving the corporate world to work as contractors or freelancers. Nevertheless, it does not mean that just because a task could be outsourced, one should. It is not a good idea to outsource something one does not want to do. At times, there are things that one does not want to do, but are important the organization's core. Before choosing which tasks to transfer to a third party vendor, take a closer look at the business and determine its values and strengths.
The kinds of jobs which are best outsourced fall into three general categories. These include highly skilled or executive expertise, extremely repetitive tasks and specialized knowledge. An example of a highly skilled/executive expertise is requiring to pay a CFO's salary but could have a CFO-level person to come in a few times every month to provide financial analysis and make sure the bookkeeper is handling the books well. Tasks that are extremely repetitive include data entry, accounts payable and shipping inventory. Specialized knowledge could be IT support for the accounting system of the company. A firm may be unable to afford or require a full-time IT person, thus it is easier to opt for an outsourced vendor with the right set of skills.
Finding the right vendor is highly important. Recommendations from friends or acquaintances are preferable, but in the absence of these, placing ads on a work-at-home site and submitting for proposals would suffice. After finding the right provider, it is good to put a little bit of time creating a specific contract which exactly outlines the performance expected. Incentives could be used for motivating an outsourcer to focus on what is most important instead of their own preferences or assumptions.
Communicating the expectations and the steps included in the job should be done in a clear manner. Do not assume that contractors are thinking what the company may be thinking. Even if expectations are stated clearly, there would be a learning curve on the side of the provider. However, it would get better and one could have the freedom to focus on more vital tasks. One final responsibility would be to step back, relinquish control and allow the team to do their job they are hired to do. There must be a measure of trust in order to succeed in the endeavor.