How to Create an Outsourcing Strategy

A carefully and result-oriented crafted outsourcing strategy will help any business, corporation, individual or company achieve the set objectives in a more effective manner. It starts by making a cost-benefit analysis that considers factors such as quality expectations, financial requirements and outsourcing relationship.

Here are step-by-step tips on how to create a success-prone outsourcing strategy;

Step #1: Assess the Needs of Your Business

For instance, if you’re just starting a business, your need may be to aid a successful start-up. For already established business, you may be concerned more about innovation and new products development. Whatever it is, you need to first identify your business’s needs before stepping out to look for an outsourcing service that would meet the need adequately.

Step #2: What Is Your Reason for Outsourcing?

In order to develop a success-oriented outsourcing strategy, you also need to pinpoint the reasons behind your decision to outsource. Typical examples may include the following;

  • To gain access to skills or tools that are not available within your business premises
  • To cut back operational costs and boost profit as a result
  • Access a larger pool of targeted skill set at an affordable manner
  • Speed up your entry time to market in order to gain a larger share of the market
  • …and so on.

Step #3: Create a Plan for Attaining Your Business Goals

For instance, let’s assume your business or company is in the process of creating a new line of service for its customers or creating multiple services to gain more customers. In this case, the things to feature in your plan may include the following;

  • Hiring external consultants
  • Hiring outside marketers for the product lunch campaign
  • … and so on

Step #4: Contact Potential Outsourcing Providers

The next phase is to contact potential contractors and probe their expertise, cost and other requirements. You probably know that one of the top benefits of outsourcing is to leverage the experience and expertise of the outsourcing vendor.

Step #5: Request for Cost Estimates

Start early to enquirer about the likely cost of your outsourcing project. This way, you are able to carry out a cost-benefit analysis, as well as competitive pricing studies. Subsequently, you will hire a provider in the light of the information you’ve gathered and analyzed.

Step #6: Check and Confirm References

Checking and confirming references is a great way to ascertain the quality of service to expect from the provider. Speak with the companies, individuals or businesses listed in the reference to confirm the claims.

Step #6: Calculate Both the Financial Costs and Savings

For instance, hiring and training employees in-house, plus funding office equipment and office space could be more cost-intensive compared to outsourcing the business functions in questions to external contractors.

The next step is to ahead and hire outsourcing provider that meets your requirements.

Daven Michaels is a New York Times Best Selling Author and CEO of the premier global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

3 comments on “How to Create an Outsourcing Strategy

A quite useful piece of information. Outsourcing has many different tasks and each has benefits for growing your business. Very interesting insights, good points.

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