How To Outsource Work Successfully
(+ 5 Tips For Success)
In this article we’ll layout the what and how of offshore outsourcing. The key points outlined below are tailor made for you by experts in the field of outsourcing. This means that you’re getting trusted advice from world class leaders that have learned the hard lesssons and are gifting you the knowledge of how to successfully outsource to the Phillipines and other countries, without making costly mistakes along the way.
Your business can save money and drive greater efficiency by learning how to outsource successfully. Here’s how:
What Is Outsourcing?
Outsourcing is when an organisation decides to contract an external firm or individual contractor to do a specific task or function. This can range from outsourcing an entire project team such as Customer Support, Web Development, and Software Development, or employing a single professional through a BPO(Business Process Outsourcing) firm such as Graphic Designer, Video Editor or a Network Engineer. These are just some examples of possible roles that could be outsourced.
The country of residence will have specific employment requirements that even foreign companies are required to comply with such as holiday leave, sick leave, and other employment benefits. This is where an outsourcing firm comes in handy.
What Jobs Can & Should You Outsource?
Now that you know more about outsourcing, let’s take a look at some examples of jobs that can be outsourced more easily. With the transition to digital work in full swing across the globe, many jobs in industries that are costly to employ and difficult to find employees for are great starting points for outsourcing.
These include:
- Accounting – Regulatory Compliance, Bookkeeping, Payroll Processing, Financial Analysis, Forecasting
- Customer Support Services
- Engineering – Research and Development, CAD, Drafting, Reverse Engineering, Product Lifecycle Management, Consulting services.
- Information Technology (IT) & Tech – IT Support, Web Developers, Software Developers, Network Engineers, Data Analysts
- Legal support – Back Office Functions, Memo Drafting, Contract Drafting
- Supply Chain & Logistics Management
Outsourcing is not limited to these categories & roles. Currently more technical jobs and hands on tasks are being outsourced, as well as project management roles in these industries. While it is possible to outsource other roles, the level of seniority in an organisation and core dependencies play a role in critical the role may be in your organisation.
Comparing Costs: In-House, Onshore, & Offshore Outsourcing
So you’ve decided that it’s time to try outsourcing and your first target is finding a software developer as they are difficult to get for under $100,000. If you decided to outsource your software development to an onshore software development agency, they would be charging contract rates at even higher than an annual salary typically by an order of 2x to 3x.
This is where outsourcing to the Phillipines, India or Vietnam come into play. The rates for the Phillipines below are average annual rates from outsourcing firms:
Related: Hiring Locally vs Offshore?
What To Look For In An Outsourcing Partner
There are a few key points to look into when hiring with a BPO:
Financial Standing: Are they going to be around in 2 or 3 years as your company grows? It’s important to choose an Outsourcing Partner that will enable your team to grow. Their financial position shouldn’t put your future scalability in question.
History of quality work: Use an aggregator platform like TalentVine to assess outsourcing companies on industries they cover, and see testimonials on their past work.
Portfolios: Take a look at the portfolios of their work. This will give you an idea of what type of roles they are good at, and if they meet your quality standards.
Team culture: Take a look at their rating on GlassDoor (provided in our Outsourcing Partners list). This will show you how satisfied employees of the BPO are and tell you if you can trust your new employee to stick around.
Tips For Success When Working With Outsourcing Companies (BPOs)
1. Dip your toes in before you jump:
Figure out what will work best by outsourcing a minor role in your workforce first before taking on more critical or core roles in your business.
2. Establish clear objectives & expectations:
Manage your new outsourced employee like you would a regular remote employee. They need to be managed like other team members, and not contractors just doing a job.
3. Communicate regularly and work together:
See them as part of your team, schedule regular checkins via video and not just audio calls. Make sure you avoid any miscommunications by having checklists and using other project management strategies for the projects they are working on.
4. Be Secure:
Keep company security in mind. Trust should be earned over time and access controls should be used on a right level access basis.
5. Plan for the future:
Does your outsourcing partner cover all areas of your business that you might want to outsource in the future? or is it limited to one industry. If you think you’ll want to outsource some software development now, and then customer service in a few months, make sure that you choose an outsourcing partner that will be able to handle both.
