Do you know what outsourcing is? Outsourcing definition in simple words is getting the work done by someone else with the objective of gaining some benefit. There are many benefits of outsourcing but it does not mean money all the time. Sure many people outsource work due to high labor costs in the local market but there is more. In this article we will try to understand some amazing outsourcing facts. You should only know how to outsource work and the basics of assigning the work. With little research you will find some of the best countries to outsource software development and more. We mentioned software development because almost every company uses it. Irrespective of the size and nature of work you can outsource software development services.
For example if you want to make a website then hiring an inhouse website developer is expensive. Because most businesses do not make software as their core job. Therefore, outsourcing IT services is the best solution. Additionally, you also save a lot of money.
Why is outsourcing important for business?
First of all you need to analyze the need for outsourcing. When we say need then it is related to the services you need. A company has many departments. Starting from the production department to facilities and IT services. Every department works together to make business successful. But cost analysis is also an important fact. Compare the cost of outsourcing with the cost of inhouse employees. If the difference is huge then this is one reason for outsourcing.
The next step is to check the expertise level you want. For example you need a team of experts to do a job. Your inhouse employees and you do not have enough knowledge about it. Hiring experts is always more fruitful than developing the expertise.
Once you identify the need for outsourcing business then the next step is to find outsourcing companies.
Outsourcing Facts
The positive side
- As per some of the internet reports more than 93% companies improve IT services via outsourcing.
- More than 90% of organizations use some kind of outsourcing.
- Outsourcing helps you save a lot of money. You can use this money to grow your business.
- If you do enough research, you can enjoy expert services without much effort.
The negative side
- One of the most interesting outsourcing facts is that 80% of Americans say that outsourcing is hurting employment opportunities.
- Most people find the easy way and as a result they do not develop inhouse capabilities.
Best countries to outsource
This also depends on the requirement. If you are looking for the best countries to outsource software development then the answer will be different. If you want the best countries to outsource customer support then there are other options. Do your research based on what you want.
Some of the best countries to outsource work are
- India
- China
- Philippines
- Taiwan
How to Outsource Work
Outsourcing the work is a simple and convenient process if you follow the right steps. But you also need to be very careful about the fraudsters. Just follow the steps mentioned below to find the right company to outsource.
Step 1 – Analyze the requirement
First of all the process starts with the need. For example you want to outsource customer service. All these outsourcing facts will define the overall result of what happens after you outsource the work. Ask yourself these questions:
- How many executives do you need to be available at one time to manage your customers?
- What should be the average response time? This means how fast you need to respond to queries.
- What is the average handling time (AHT)?
The above two requirements also change the number of executives you need. The faster AHT means more active employees at a time.
Step 2 – Compare the cost of outsourcing services with In House
Cost of outsourcing services depends on your needs. This cost also fluctuates with every requirement. Therefore, first of all you need to measure your in house cost. Keep this among top priorities. It is good if you know how to outsource the work but many fail in calculating cost. Irrespective of how good and new business ideas you have, without profit you cannot survive. Therefore, always keep cost in mind. Find low cost outsourcing solutions that also offer quality. You can also bargain with the top service providers. If everything fits well then we can think about hiring someone.
Step 3 – Check if the company is fake or real
This is very important. To protect your money you should know how to check if the company is fake or real. Starting from reading company reviews (customer feedback) to website data, check everything. You can also verify registration documents of a company to be double sure. This single step can reduce chances of getting cheated.
Step 4 – Make a Contract
This is from the basics of doing business. If you do not know how to make a contract then you should learn this skill. Making a contract is as important as doing business. If someone sends you a copy of the contract then read it word by word. This means every term mentioned in the contract is important. Add a few more terms or remove to ensure that it favors your business. Obviously every business wants to make profit but still make it the best possible at least.
Step 5 – Identify Performance Metrics is the most important among all Outsourcing Facts
This is the most important of all outsourcing facts. The entire exercise of outsourcing work will derail due to poor performance metrics. Performance metrics define failure or success or outsourcing business. Therefore, before signing the contract make sure you add required performance metrics.
Let us understand this via an example. You want to outsource marketing services. Performance of your business depends on the number of conversions and not on the leads. Imaging the marketing team is generating 1000 leads per day. But the conversions are not happening due to poor follow up. You not only lose potential business but also the brand image. Therefore, make sure you mention everything in the contract. Now it is time to sign up and kick start your outsourcing journey.