How Businesses Should Choose an Outsourcing Service Provider

1. 2019 How Businesses Should Choose an Outsourcing Service Provider Back office outsourcing provides access to highly skilled professionals who can assure quality work within the given time period. Managed Outsource Solutions 8596 E. 101st Street, Suite H Tulsa, OK 74133

2. Lately almost all companies, big, medium or small, are investing hugely in back office outsourcing hugely with the objective of cutting cost in every areas, to take new initiatives and manage workflow efficiently.Outsourcing has grown to become a common business practice that helps businesses gain skills and services that are normally difficult to develop in-house because the organization may either be financially weak or have some sort of manpower restrictions. Outsourcing is the process of delegating a company’s business processes to third parties or external agencies, leveraging benefits ranging from possible low cost labour and improved quality to product and service innovation. It uses skilled workforce to perform tasks efficiently and also enables more focus on the core competencies of the business. Other benefits include access to a wide pool of talent, flexibility to hire staff, and round-the-clock service. According to various surveys: •In 2018, the global outsourcing market size in 2018 was $85.6 billion (Statista). •Around 84.2 percent of outsourcing originates from the USA, followed by the UK, Spain, and Australia (KPMG, 2017). •65% of the firms that have outsourced in 2017 would likely continue to do so (Outsourcing Insight). •37% of organizations are planning to increase the amount of work to outsource for application development (IT Outsourcing Statistics 2017/2018) From the above statistics we can understand that outsourcing is beneficial for businesses and it helps you expand your business. However, it is important to choose the right vendor for outsourcing. Moreover, there are certain things to keep in mind when considering the outsourcing model. •Understand what you need from outsourcing: Only if you can define what you need you can form an idea about who you need. Take the case of business development, as highlighted in a recent thedrum.com post. If a new business process falls short of a good business development strategy, you will need someone senior and experienced for the job whether you choose to in-house or outsource. On the other hand, if your requirement is a big thrust on outbound communications, you would need an energetic younger business development person for the job. If you need both strategy and lead generation you would either have to recruit two persons in-house, or go for an outsourced specialist business development partner. Outsourcing is beneficial because you gain access to a dedicated team comprising both senior and junior people with the required capabilities and experience. You will find it difficult to achieve this combination in-house. •Investment involved in tools and personal development: This could prove costly considering that you have to invest in your in-house business development manager’s personal development and tools including trade press subscriptions, a CRM, data, and so on. Outsourcing partners will already have access to the best tools needed, and have a clear understanding of the most effective way to use those to create excellent quality new business opportunities. •Over-burdening the business development manager: Many businesses make the mistake of tasking their business development manager with outbound development tasks as well as screening inbounds, RFPs, marketing, pitches, and so on. This will result in the new business www.managedoutsource.com (800) 670 2809

3. being given full attention only when there is no other task at hand. If outsourced, lead generation will be separated from other aspects of the business and enable more focus on new business success. Businesses choosing to outsource their business processes could consider the following. •Understand your requirements and communicate it to the vendor: Before outsourcing, make sure to have a quick 15-minute video call with the vendor. This quick video call serves as an introduction and sets the stage for working together. Make sure to convey all instructions and changes in writing. Communication plays a crucial role in outsourcing and it helps the vendor understand your requirements. •Give feedback constructively: It is always good to appreciate good work. If you are not satisfied with your vendor’s work then provide a detailed comment for the job and tell them about the issue politely, pointing out the mistakes. Instead of starting with criticism, begin with all the good work, give them a compliment and then slowly move on to all the small tweaks necessary. •Don’t go for the lowest priced option: Although the main objective of outsourcing is to minimize cost, make sure to avoid low-priced options. Choosing the least expensive vendor can lead to inaccurate work or poor creative service that may not meet your standards. •Be careful about what you choose: There are many vendors available around the world and there are many platforms too like Upwork, Guru, freelancer.com etc that lets you outsource your work to freelancers. However, it is better to choose a service provider who has trained professionals with varied skills. To ensure that you choose the right vendor, consider the following: ▪Experience of the vendor; ask for references and the work they have done for earlier clients. ▪Ensure that the vendor has access to proper communication tools in your language or any language that you understand. ▪If the vendor is located in a different location with a different time zone, then arrange a fixed time convenient for both parties to hold discussions or meetings without any hindrance. ▪Verify whether vendor has the ability to commit to the project in case of tight deadlines. You can take references form their former clients to know how they perform under pressure. Back office outsourcing provides access to highly skilled professionals who can assure quality work within the given time period. Businesses that outsource have benefited considerably and many of them have openly endorsed outsourcing. Nowadays, outsourcing firms enjoy excellent reputation as partners in the business, working to help their clients achieve their business objectives. www.managedoutsource.com (800) 670 2809