People, who are aware to the risks of business process outsourcing, understand outsourcing as a gamble. You must know that there are many pitfalls if you fail at making the right decision. Putting your business in right hands is necessary, else it can get pear shaped. If you are unaware of the risk of outsourcing, you must equip yourself with sufficient knowledge before taking any decision.
Here, we are going to provide you some tips about the outsourcing practices so that you can avoid the most common pitfalls. These tips will lead you to a better decision making process.
Which activities to outsource?
Identify your organization’s competitive advantage. Outline the activities and aspects of your business which makes you unique. Figure out the functions that define your company. Retain your control over things which your customers appreciate the most. Do not outsource the business process where you are a leader and can effectively manage. If you are having an increased demand or shortage of resources, outsourcing is not the solution every time. You can hire skilled staff, train new comers or do job rotation of old employees.
Avoid outsourcing those processes which impact your customers directly. Except that, if you find your employees moaning in office about work overload and you cannot hire more staff, outsourcing is a good option to consider.
Own your Website:
If you are a brand or a digital business, your online presence is everything. Your website and your social media platforms are the lifeline of your online presence. Many organization go for outsourcing their digital presence and commit a lifetime mistake by sharing the administration rights. Outsourcing your website and social media is not a bad thing, losing the ownership is. Keep control over your website by registering the domain on your own account. If you hand over the ownership to any designer, programmer or marketer; they can take it down anytime.
Even if you are already having a digital presence, do check its registrar control on www.whois.net. Never share the registry control with anyone. Even if your programmer asks for it, give him access through TeamViewer on your account and look after his actions.
Identify all outsourcing costs – Hidden costs as well:
People decide to outsource some of their functions because they want to get the expert services on lower cost. Many organizations outsource to cut down the costs. When you find the in-house expertise development cost is way higher than outsourcing costs, you decide to outsource. Make a draft of your projected savings for the whole next year so that you can evaluate the performance on regular intervals. In beginning, you will face a difference between projected savings and actual savings. This difference is caused by multiple factors like time loss, adjustments etc. But, if the difference continues more than 2 months, you have made a poor decision.
You must negotiate for all hidden charges, even if they are one time. You must consider contract fees, legal cost and travel cost while making calculations.
These are few tips which can help you taking right decision while outsourcing.