The Key to Outsourcing

There is no doubt that outsourcing is gaining popularity in the small business world.

Once upon a time it was just the big corporations who took the plunge to outsource, as a way to manage their costs, become more efficient as well as fulfil their staffing needs.

There’s a reason why it has become so popular throughout the business world, and not just for the reasons stated above but for the simple fact that small company owners know that to grow they cannot manage all of the business activities themselves. Notwithstanding, they know they can access specialized assistance if they outsource particular activities.

Outsourcing, as a term, has been around since the 1970s, but the actual practice of hiring people outside the company to work on non-core business activities has probably been around a bit longer than that.

The perception of outsourcing has had its ups and downs but as businesses have become clear about the concept of outsourcing and what it can be useful for, coupled with major technological advances, its popularity has increased.

The key is to be smart about outsourcing.

Which means…

• Developing an outsourcing strategy. Know if outsourcing is going to be a good fit for the business and what the intentions are behind using this strategy.

• Understanding what is the core and non-core activities of the business and outsource the non-core. Often it includes the tasks that business owners don’t want to handle such as:

• Content development

• Financial services

• Scheduling and administrative tasks

• IT Support

• Data Entry

• Finding the right partner to outsource to. Look for recommendations and be clear about the type of outsourcing work that needs to be done and that it is going to someone who specializes in that type of work.

• Making sure all communication channels are wide open and expectations are clear between both parties.

There are many benefits of outsourcing thanks to the global world we live in, but it’s not without its challenges, especially when working internationally. Be mindful of the potential pitfalls and know how to work through them and outsourcing will bring massive returns to the business.