Outsourcing for your business – the 4 factors of success

Outsourcing for your business can be daunting.  You want to get it right the first time.  Outsourcing can be a huge investment, but in the long run it can mean savings and even growth for your business.  Here are 4 tips to set yourself up for success when outsourcing.

Set clear objectives

In order to get the best when outsourcing you need to be clear about what you want to achieve.  This will enable you to:

• Find the best outsourcing solution for you

• Communicate clearly with the external provider to ensure you get the best outcome

• To measure how successful outsourcing has been.

Using the SMART criteria is a proven method for developing clear and attainable objectives and providing definite criteria against which to measure success.

Specific – be focused and identify the key outcome or deliverable

Measurable – define what success looks like for this objective

Attainable – be realistic, a goal should be challenging, but not impossible

Relevant – check that your objective aligns with your overall business strategy

Timely – setting a date provides focus and motivation and contributes to the measure of success

 Do your research

Learn as much as you can before you choose your outsourcing solution.  Start with Google or LinkedIn and follow the breadcrumbs.  Find out what options are available.  You can outsource just about anything these days, so it’s likely you’ll have a wide variety of providers available.  Things to think about:

• What type of provider would suit you best? 

• Would you feel more secure with a company providing the outsourcing or a freelancer?

• Does their location matter? 

• Can you work with them online, through videoconferencing and email, or would you prefer someone you can meet? 

• Are time zones an issue?

• How much experience do they have? 

• Have they worked with a similar business in the past? 

• Do they have testimonials or recommendations?

Once you have done the initial research get them on the phone, or meet them in person.  Pay attention to how they interact and communicate with you. This is a great indicator of the success of any future working relationship. Ask yourself:

• Are they easy to work with? 

• Do they know their stuff? 

• Do they care about your business objectives or are they just trying to sell to you? 

• Do they communicate in a timely manner?

• Are they proactive?

Crunch those numbers

Now that you’ve set clear objectives for outsourcing and selected a short list of providers, you can get some quotes.  The rule of thumb is to get 3 quotes to compare and make sure your quotes are comparative.  That means, each provider is quoting for the exact same or very similar thing.  Without this consistency, it will be hard to make a well-informed decision.

Now take a look at your inhouse costs.  How do they compare to what the providers have quoted?  Be honest about your in-house calculations, think about how long doing the tasks actually takes, not just what it should take.  And consider do you have the expertise to do as good a job as an external provider? Also, be honest about your hourly rate, don’t short change yourself.  Think about what those additional hours of in-house time could mean for the growth of your business.  Where is your time better spent?

Invest in communication

You’ve hired your outsourcing provider, now it’s time to invest in communications.  This will vary greatly depending on the type of provider, industry and nature of the outsourcing, however there are some best practice communication tips that will set you up for success:

Legal documentation

This applies to every situation.  No exceptions.  It doesn’t have to come from a lawyer for smaller arrangements, however there does need to be some written agreement that covers at minimum payment terms, timeline and job description. If you are unsure, contact a legal professional.   

Constant communication

This also applies to every outsourcing situation.  This is vital for gaining understanding, measuring progress, providing feedback and building a close working relationship.  Establish regular communication from the start through daily or weekly meetings, calls, emails or videoconferencing.   

Be open to advice

Providers of outsourcing solutions are subject matter experts.  They do this “one” thing, and they do it well.  They have a wealth of experience and knowledge and they know what they’re talking about.  Often, they’ll be able to provide insights or advice that’s beneficial to your business that you perhaps hadn’t previously considered.  You may not agree, or you may not be in a position to implement changes immediately, but DO listen.

Provide training and documentation

Some outsourcing solutions, administration in particular, require an investment in training and documentation.  When there are tasks that need to be done a specific way, the best way to replicate these is to provide one-on-one training and regular monitoring in the initial phase.  This needs to be backed up with detailed instructions and/or checklists.   This will ensure that your tasks are done correctly and efficiently from the start.

There is no guarantee of success when you choose outsource for your business.  But you can set yourself up for success, by setting clear objectives, doing thorough research, accurately crunching the numbers and investing in communication. 

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Shoot me an email.  Writing and marketing is my business.  I am a writer with a background in marketing and a passion for small business.  I specialise in marketing and communication strategies, business writing, and content creation.