Outsourcing is a major decision for business owners to make and think of. It takes money, time, relationship and thorough planning. Knowing when to outsource and how to do it seems to be just simple questions but there are some complexities on it and are important to know the exact answers to utilize the process effectively.

One may consider if the decision to outsource will contribute to competitive success of the business. The nature of the job to outsource should be something that people does not enjoy doing, so it will be impractical to regularize staff doing the job. They may sooner or later get bored and lose their efficiency on their job. Some may think that it could be cheaper not to outsource but unknowingly, it’s already a waste of time and money for there are available service providers that can give full assurance of quality service because it is their line of expertise.

The first practical move is to do a survey. Ask friends, business owners and other companies you know if what good outsourcing firms they could recommend. You may also search through the internet and list the service providers which you think fit to provide the job that your company needs. Each outsourcing firms can be contacted via email or phone to have a clearer understanding if they are capable to provide quality service to their clients.

Service providers need to conduct a scoping of the outsourcing company for them to know the coverage of their service. From this scoping study, both parties will be able to determine the exact nature of service needed, time frames and other performance indicators in maintaining the project. They may come up with the full details of the plan including the budget needed to realize the process.

When you come up with your choice, prepare to do the contract. It may be a short term or long term depending on how you perceived the situation.

Make sure that the term of agreement allows you to make future changes to any future unforeseen events.  The agreement may be effective this day but not the following day. In other words be wise but fair enough for both parties.

When we say thorough planning, there have to be a detailed plan on how it will be conducted and monitored. The outsourcing company should keep in mind that they are outsourcing to improve the way they do business. Any unnecessary or not so important things should be eliminated and that they should focus on what kind of specialized skill/service are they going to offshore.

Understand that from the moment you sign up the contract, you also lose direct control to it. So, it is necessary that you check on them making sure that the job is being done promptly and correctly. Constant communication is very important to prevent potential problems.

Outsourcing already has a very wide coverage. You may outsource from computer services, property management, human resources and employee training, payroll, accounting, customer service. All of these can help to improve your way of doing business and generate greater profits.

Guest Contributor