What Is Outsourcing? Business Process & Its AdvantagesSeptember 6, 2022
Outsourcing is a term that many people know in recent times. Perhaps because of the popularity and obvious effectiveness that it brings to businesses. This is the reason why today a lot of businesses use this kind of service to speed up the process. To have a clearer view of Outsourcing and its benefits, let’s find out in this article below!
What is outsourcing?
Outsourcing is when you hire a 3rd party to perform the work that the business cannot afford or does not have a specialized department to do. Usually, businesses will entrust specific tasks to 3rd parties for a certain period of time for a negotiated fee.
Outsourcing brings businesses a lot of benefits. For businesses that do not have much time and budget to build a new department, outsourcing is really a suitable solution.
We can take a look at this example to better understand: Your company is trading in the travel industry and you have to attract customers through the website. This is the time when you need to hire an Agency to build the web and provide content for you instead of building a whole team that costs a lot of money.
The most common industries that are suitable for outsourcing are marketing, IT, headhunt, consulting, design, etc.
The advantages of outsourcing
As mentioned above, outsourcing has many benefits whether it is a large or small business. Here are a few outstanding benefits that you can consider for your business
Outsourcing service providers are agencies with expertise in the field you need. In addition, they also have systems to monitor the quality of employees’ work. And ensure the quality of output as committed to customers in contracts. This is the reason that the services they provide are often very professional.
Save on costs
Of course, besides product quality, cost optimization is the reason that businesses choose outsourcing services. To hire an employee, besides the high salary, your business also has to pay other fees such as devices, T&D, insurance and other benefits. The cost businesses spend to hire outsourcing services is much lower than the cost of building a team. On the other hand, agencies that are experts in their fields will apply advanced technologies to increase product quality. Therefore, your product will be developed with modern technologies without having to spend a lot of investment.
Outsourcing services will help you to reduce the time it takes to find human resources. At the same time, the outsourced human resources already have expertise in the field you need, so the job deployment will be faster and more efficient. If you build a new team, you will have to spend a lot of time training new employees. Not only that, these employees need to have time to integrate into the company’s culture and environment before performing tasks.
Focus on core values
Outsourcing short-term projects or projects that you don’t have the resources to do will help you focus more on your main work. By being able to spend more time and resources on key activities, you can improve your company’s revenue, and can grow your business better.
BPO & Process Outsourcing
BPO is the term attracting a lot of attention in the Outsourcing topic.
BPO stands for Business Process Outsourcing. Accordingly, businesses will hire a third party to help them carry out activities outside the core business such as Marketing, Recruitment,…
Below is the process of finding a suitable outsourcing partner:
Looking for partners
First, you need to find outsourcing companies and make a list of potential partners. This is an important step that can determine the success or failure of the project. You need to carefully research these companies, capture their information and decide to choose a suitable company to cooperate with.
Make a request
After you have found your partner, now is the time to give your requirements. Make sure that your requirements are clear, and attached with the deadline and specific outcome standards so the partner company can understand them in the most detail.
Follow up on the implementation
Although you won’t be the main executor, you need to keep track of the progress of the work. Ideally, you should ask your partner to list the to-dos and report the results periodically. Periodic reports are very important, these are the bases for you to review the effectiveness and implementation of your partners.
After completing the project, the partner will hand over the results to you. This is the time to check all the results. Make sure all your requests have been addressed. If there are some unsatisfactions, please ask the partner to edit and supplement before officially handing over.
After project handover, outsourcing agencies will support you to maintain or fix problems when they arise within a certain period of time based on the contract. Try to keep this point in mind in the contract. This is very important if you do not want to have to spend extra money to fix problems that arise after the contract ends.
How to optimize the outsourcing process?
We have already seen the greatest benefits of outsourcing. So how to optimize business process outsourcing? Here are 3 tips you need to keep in mind:
The first thing you need to do is to research your potential partners. With the development of the internet today, you will easily find information about these service providers. You can consult on platforms like Clutch, GoodFirms or Upwork. These are the platforms that will list partners with whom you can outsource with real ratings. Of course, you also need to find out information from social media, blogs, news or their previous partners (if any). Find out carefully about the agency you intend to contract with.
Clarity in communication
Transparency and comfort in communication between the two sides are important factors when choosing an outsourcing agency to work with. A few questions that you should keep in mind to ask your partner are:
- Are the requirements clear?
- Is there a language or cultural barrier?
- Is there a time zone difference?
- How long does it take to update a partner’s work?
Binding in the contract
To have cooperative relationships in the long term we need a contract. Outsourcing Agencies will always focus on signing contracts to legalize agreements. Pay attention to some elements of the contract such as:
- Project Terms
- Estimated budget
- Rights and responsibilities of both parties
- Nature of the work.
In addition, the terms and information in the contract also need to be respected and kept confidential by both parties.
Why should you choose Enosta?
You’ve just read through the outsourcing process. You must have seen the great benefits of outsourcing services.
As a companion for many years with SMEs, Enosta understands the problems that businesses are facing. Therefore, we provide you with a comprehensive solution including services: Branding, Product Design, Web Development and Product Launch.
These are the basic and necessary services for you to bring your idea to market.