It is sometimes the case where the growth of your business outpaces the growth of your workforce. While your business may try to compensate by tackling the extra workload with existing resources, this could be detrimental to other areas of the business that may get neglected as a result.
Working extra hours to navigate the added workload can become counterproductive and lead to stagnancy. Businesses that realise this will explore solutions to keep it on its trajectory of growth while maintaining its key elements. Companies that experience overwhelming growth often turn to outsourcing to handle key elements of their operational model.
What is Outsourcing?
Outsourcing is a common practice that businesses use to help them with operational challenges that they may be facing. This is done by engaging in the skills and expertise of people outside of the business structure. A company may decide to outsource a specific task, project, or section of its operational model to an external party.
By doing so, the company can focus their effort, time and attention on core business requirements with their existing staff. Moreover, the company can save costs as no recruitment and onboarding processes are required. When a company is thinking about outsourcing, they typically assess their current skill set to determine which tasks need to be outsourced.
Core competencies are usually kept in-house while specific tasks are outsourced to specialists in that field. Businesses are only as strong as their weakest link, so it is vital to outsource to an expert that will meaningfully contribute to your company’s goals.
How to approach outsourcing?
When thinking about outsourcing some elements of your business, you must consider the following.
Understand your motive
Before diving into the actual outsourcing process, you need to identify your approach. You need to determine if you are looking to get straightforward tasks off your hands, save on costs, or hire an expert to assist with a specific part of your business. This will help you to understand what your goals actually are and how much you are willing to invest in them.
Whilst outsourcing is an excellent means to achieve specific goals, wasting money on undefined expectations can lead to more confusion. A good idea is to decide on a project or hourly rate, or a fixed price that fits within your budget. If you are having trouble reaching this figure, you can break down the required tasks into hours and calculate the hourly rate to estimate your fixed budget. Both fixed prices for projects and hourly rates are great options as long as there is an understanding between you and the outsourced party.
Get clarity on project specifications
Once you understand why you want to outsource, the next step is to get clarity on the project specifications. Some elements to consider are the length of the project, whether it is a once-off or ongoing commitment, the scope of the work required, and what type of deadlines will be given.
Although some projects may not be as urgent and without any time pressure, it is a good idea to set deadlines for those as well. This will avoid the project rolling along for extended periods and also ensure that the outsourced party does not get complacent. With deadlines in place, you can then move on to your expectations.
It is critical for you to define your expectations with the outsourced party at the beginning of your interaction. You must be clear and specific about what you expect from the outsourced party. There may be instances where you will want to outsource an entire project as you don’t have the time or resources to be involved in that specific project.
In other instances, however, you may want to be involved in some capacity with that project to provide feedback and insight as the work progresses. In these circumstances, you must specify that you would like to keep track of progress and ensure that revisions will be adhered to, as per your feedback and insight.
In terms of fixed-cost projects, it is very important to be specific on exact deliverables. You must specify exactly what you are paying for and what you expect the outsourced party to deliver in return for that payment. With clear expectations spelt out, the job of the outsourced party has direction and purpose from which to work.
Benefits of outsourcing
Access to quality resources:
When businesses experience growth, they usually require more resources to accommodate them. Key components of your business may already be stretched to the limit by other critical responsibilities and this may pose a challenge. By choosing to outsource vital elements of your operational model, you relieve your in-house staff of an unwelcomed burden.
Moreover, you have access to quality resources with a specific skill set that your team may be lacking. Overall, outsourcing will help to better allocate resources and helps with the growth transition without compromising other parts of your business.
Expertise and experience:
Usually, the need for outsourcing is due to a lack of expertise and experience in specific domains and technologies. Acquiring such skills at your company can be a costly affair, especially if those skills are only required for a limited period of time. By using an outsourced party, you can tap into specialised resources with the exact skills that your company lacks for a flexible amount of time. With these outsourced parties equipped to address critical elements of your business, you will be able to see results quickly as implementation is accelerated.
By choosing a skilled outsourcing provider like PrimePixels who have experience with multiple companies, you will be more confident in getting effective results. Such outsourcing providers understand industry-specific problems, challenges that lie ahead, and practical ways to overcome these challenges. Not only will you save time and money, but you will avoid risks that follow unforeseen complications or missteps.
Flexibility and scalability:
By employing an outsourcing provider, you can control the cost of your transformation by upsizing or downsizing your outsourced team at any time, depending on your business needs. You only need to use specific skill sets when necessary and you can take advantage of a dedicated outsourced team during the most demanding phases of your operations.
You can be assured that outsourcing providers use the most stringent security practices to safeguard companies like yours from risks such as cybercrime. This is particularly useful when the outsourcing provider launches projects from their end on behalf of your company.
Outsourcing is an excellent way for companies to manage their growth by engaging in specialised skills from experts in their field. Where companies lack the skills, experience and resources to perform specific tasks, outsourcing providers can offer trained capabilities that give the best solutions for an organisation. Moreover, companies can benefit from access to the best talent, cutting-edge technologies, and unique expertise that all contribute to an effective strategy. Choose wisely and take your business to the next level!