More and more businesses are starting to recognise the value of outsourcing. By calling in the experts to deliver on your non-core functions and services, you're able to lower the costs associated with these services, as well as ensure they're not only delivered, but delivered more efficiently than if they were kept in-house.
Any non-core area can essentially be outsourced. While the more traditional payroll and financial services (debtors and collectors) have been outsourcing candidates for some time now, IT, marketing and communication are starting to play more significantly in this space.
When it comes to deciding what can successfully be outsourced and what can't, potentially the only thing you cannot outsource is your core business. All supporting areas can arguably be outsourced. Crucial to the decision whether to go ahead with this or not, however, is your selection of the right outsourcing partner.
When you outsource a function, you essentially entrust someone else with one of your business areas. While they will be bound by a service level agreement, with penalty clauses in place to safeguard your investment, beyond doing your homework and researching the outsourcer and its ability to perform, you are ultimately going to have to trust the company to deliver. A track record and reputation can form the basis of this trust. Insist on speaking to other clients - ask about handover and delivery; ask if they upgrade their equipment and implement the latest business processes. Ensure you have peace of mind about the contract before signing it.
In terms of the actual contract itself, set KPIs (key performance indicators) according to the industry standards available. And, if you need convincing, ask for proof of concept, where they come and run the system in-house for a period of time before outsourcing. That being said, when all is signed and sealed, hold your outsourcer responsible - keep measuring delivery against the KPIs; don't become complacent about these.
Perhaps the best indicator of a "good" outsourcer, however, is how proactive the company is in suggesting how you use the data it is collecting on your behalf. Remember, that is ultimately what they are doing - something far more valuable than dealing with customer complaints and queries, and selling stock on your behalf. Ensure it makes this available to you on a regular basis, in order for you to track trends and identify marketing opportunities based upon this. Look beyond your outsourced call centre or service desk's "bums on seats" cost reducing function, and ask yourself how you can ensure it adds value and makes a difference to your core functions.
When it comes to outsourcing any part of your business, look at what you can afford to trust others with, and if they have a track record that proves they're not only capable of doing the job, but can be trusted to deliver. That way, you'll ensure you not only find the right outsourcer, but someone who will come on board as a partner - and be as committed to your company and building your business as you are.
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