7 Things to Consider Before You Outsource Work As a Business
You’ve started to notice that your staff are flat out. They’re starting to get stressed and there just isn’t enough time in the day to get everything done.
Is there anything you can do to help?
Yes—why not outsource work? Make life easier for your employees by outsourcing certain projects, freeing up their time to focus on what they do best.
If you’ve been thinking about outsourcing, you’ll know it’s a great way to get expert help in areas where your company isn’t as strong. Outsourcing can save money too, compared to the cost of hiring in-house staff.
If you’re ready to get started, keep reading to learn the top seven things to think about before you outsource any tasks.
1. Should You Outsource Work or Do It In-House?
One of our top outsourcing tips is to have a clear plan of what tasks you want to outsource and what will be done by staff.
Generally, companies tend to outsource tasks that can be done more efficiently and more cost-effective by someone else. This is especially true for small businesses, who have small staffing numbers and limited time.
It’s best to let your staff focus on what they do best, and outsource other tasks. In many companies, it’s common to outsource human resources and payroll, IT, customer service, and marketing.
As a team, sit down and make a list of what you want to outsource, making a list of pros and cons for each project.
2. What Is Your Budget?
Before getting started, work out in detail what your budget is for each project that you want to outsource.
Budget will include not only the hourly or project rate you’ll pay the contractor but also the time invested by your staff to training, recruitment and advertising costs to find the contractor and any additional HR or insurance costs that may come from working with external suppliers.
It can be easy to overspend when hiring contractors, so make it easier by knowing exactly how much you have to work with.
3. Always Consider Multiple Suppliers
It can seem easier to hire a supplier based on a recommendation from a colleague or friend or to just hire the person with the lowest bid.
However, this is not only bad practice, but it can come to cost your company more in the long run.
You always want to consider multiple contractors before hiring. This gives you the best chance of finding the right person for the job.
Consider now only their pricing, but also their experience, availability, and whether or not they seem to be a good match for your company. Can you see yourself, or your staff, working with them regularly?
Taking the time to find the right contractor means you won’t rush into anything or waste money on the wrong person for the job. When you want to hire a professional, it pays to take your time.
4. Set Clear Goals
Outsourcing can save your business time, money, and allow you to get more done. However, external suppliers aren’t miracle workers—for the best results, you need to have clear goals and timelines from day one.
You’ll need to make it clear to the contractor what tasks are assigned to them, who to contact for support, due dates, and where to access the resources they need.
If you know just what you want to achieve when outsourcing, you’ll get better results. Plus, it will make life much easier for the contractor, as they’ll know what to focus on and how to best spend their time.
5. Have the Suppliers Worked With Companies Similar to Yours?
When selecting a contractor, it can be helpful to look for suppliers who have experience with businesses similar to yours.
For example, if you’re a law firm hiring a courier service, has that courier worked with legal documents before? Do they understand the importance of confidentiality and speed when it comes to delivering the documents?
Finding someone who understands the intricacies and complexities of your business can be a big help, as they’re already comfortable working in that setting.
For tech or IT outsourcing, always check that the company has experience in the databases or systems used by your business.
6. Have an Airtight Contract
When it comes to officially hire a contractor, you’ll need to develop a contract that clearly outlines what is expected from both parties and the agreed payment.
This will protect your business, both legally and financially, in case something goes wrong.
It’s also a good idea to get help from a business lawyer before drafting a contract. However, at minimum, be sure to include start and end dates, full names, payment terms, any special conditions, and dispute resolution guidelines.
The contract should be signed by all parties, with copies given to all.
7. Does Your Business Need Fresh, New Ideas?
If your business needs to outsource on a larger scale, you may want to bring in an entrepreneur or consultancy company that can create large-scale change.
Sometimes, companies become stale, unproductive, or need an influx of new, innovative ideas to change marketing or the company’s culture.
This can bring in fresh ideas and kickstart the company into a more productive way of working. So, if you’re thinking about outsourcing, remember it can be used not just for tasks like IT or payroll, but it can play a bigger role in changing your business for the better.
Improve Your Business With Outsourcing Today
Now that you know what to think about when you want to outsource work, use the tips above to ensure that you find the right contractors for your needs and budget.
Yes, it can seem like a lot of work when you’re first getting started. But once you’ve found the right suppliers, you can focus on your own tasks and rest assured that your company is in good hands.
Get started today and see how outsourcing can help your company achieve more and save funds, compared to the cost of hiring new staff.
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