How to Successfully Outsource your Small and Mid-sized Business

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Outsourcing is increasing in popularity with business owners, CEOs, and other executives realizing they can save time and money when they outsource the right tasks. These professionals also understand that outsourcing can help them improve service and accelerate the growth of their companies. If you want to get in on this trend, you need to learn what to outsource. You also must consider when to outsource and how to ensure that your outsourcing team delivers the results you want.

What Tasks Can Be Outsourced?

Companies can outsource almost anything, but most choose to outsource tasks that fall into three categories. These categories include tasks that are perfect for outsourcing.

First, some tasks are important to your company but are not part of your business strategy. Companies handle these types of tasks every day and often waste time and money on them. Tasks like shipping fall into this category.  

Second, companies often outsource commodity tasks. Jobs like bookkeeping and loan processing are considered commodity tasks, and companies tend to save time and money when they outsource.

Third, companies benefit from outsourcing specialized tasks such as marketing and software development. It is expensive to have entire teams of marketers, software developers, and other experts on staff. Many companies find that it is much more cost-effective to outsource specialized tasks.

How to Identify the Need for Support

You will know when it’s time to outsource by conducting a cost analysis. Outsourcing is the right choice when it will save your company money. Look at the cost of handling the task in-house and compare that to the cost of outsourcing. In-house costs include hiring, training, labor, materials, and more, and those costs add up. In many cases, you’ll save a large sum of money by outsourcing.

You should also consider outsourcing for one-time tasks. For instance, if your company needs to design a new logo, it does not make sense to hire a full-time designer. It makes much more sense to outsource this one-time project.  

How to Ensure Your Outsourcing Endeavours Are Successful

You’ve decided to outsource some tasks, and you want to be as successful as possible. Follow some tips to ensure that your outsourcing endeavours are successful.

Begin With an Interview

You will start by finding an outsourcing company to use. The company will have lots of candidates available. While some CEOs and business owners let the company choose the team, it’s a good idea to conduct some interviews. A quick phone conversation will let you know if the outsourcing team selected is a good fit for your business.

Treat Outsourced Team Members as a Part of the Team

Far too many companies make outsourced team members feel alienated. Instead, it’s important to treat these team members like real employees. They might work out of another location, but they are still part of the team and should be treated as such. Communicate with outsourced team members regularly, so they feel like they are a part of the company. During the communications, get briefings on the projects your outsourced team is working on to ensure they are on track.

Talk One-on-one

During the workday, you likely talk to lots of your employees one-on-one. During these conversations, employees can open up and discuss problems they might not feel comfortable bringing up around other employees. Your outsourced team members must have the same opportunity to discuss issues. Consider scheduling weekly phone calls or video chats with your outsourced team members.

Use Incentives

Just like regular employees, engaged outsourced team members are more productive. When people are engaged, they want to do their best for the company. You can keep outsourced team members engaged by showing your appreciation for their hard work. A simple thank you and virtual cards on special occasions go a long way in showing appreciation.

Don’t Micro-manage

You are outsourcing to save time and money. You will waste lots of time micro-managing your outsourced team. You know the team members have the experience necessary to do the task at hand, so let them get to work. You should check in from time to time, but resist the urge to micro-manage.

Save Time and Money With Outsourcing

You want your business to be a success, and outsourcing can help. Consider which tasks you can outsource and calculate your cost savings. Then you can bring on an outsourcing team to work for you. Once the team is in place, you will notice that you save time and money on important tasks.