Outsourcing: Forbes’ 5 Tips for Getting Results

Outsourcing allows companies to reduce operating costs, freeing up internal resources for optimal use while mitigating risk. However, many companies are concerned that by choosing this strategy, they will find themselves working double time to pick up the slack from their provider.

In the article “Five Tips To Set Up Effective Delivery With An Offshore Outsourcing Company”, Forbes discusses the best practices for the client company to effectively leverage the capabilities of its outsourcing provider. While the article focuses on IT outsourcing, the reasoning is ultimately applicable to other outsourced processes.

Outsourcing, a multi-billion-dollar market

In its article, Forbes points out that “With the increasing necessity to shorten software delivery times and stay profitable, organizations delegate some of their business operations to third-party vendors.”. The numbers bear this out, the U.S. business magazine reminds us, “According to Grand View Research, the worldwide business process outsourcing market volume was estimated at more than $230 billion in 2020 and will only grow in the future”.

Forbes’ answers to business concerns

Forbes recognizes that some companies “face challenges when engaging external partners”. Nonetheless, he explains that there are best practices for “productive collaboration and minimize business risks”

The most common concerns companies have about outsourcing

According to Forbes, “Unlike onshore or nearshore teams, offshore outsourcing involves sharing some or all (repetitive) processes with a remote company. In this way, companies reduce operational expenses, gain access to unique industry-related expertise, and quickly increase resources”.

Some companies struggle to make a decision for several reasons, outlined below, as Forbes so aptly reminds us:

Less control over operations: the inability to resolve issues that arise or manage processes in the here and now can negatively impact delivery quality and result in missed deadlines.

Security risks: protecting sensitive customer data from exposure or decreasing the likelihood of intellectual property breaches are certainly concerns of the utmost importance.

Time zone variations: introducing rapid changes to software can become a challenge, as it requires the offshore development team to be online. Lack of communication can affect the delivery of time-sensitive tasks.

Language barrier: with ProContact, you can access a multi-skilled, multi-lingual, multi-channel power team!

Cultural variations: every culture has a way of doing things that you need to be aware of. For example, there are multiple norms regarding working hours or personal space that can impact how quickly and how well decisions are made or a project evolves.

The 5 best practices to implement for a successful outsourcing

Outsourcing concerns several million companies, across the globe, who have chosen this solution to gain efficiency. To achieve this, here are the tips from Forbes:

Choose your provider wisely

Finding the right provider takes a little preparation. Knowing exactly what your requirements are, the provider’s experience, the relevance of their corporate culture, portfolio and industry expertise will actually help you find a partner.

Even if you try several different providers, the idea is to find a partner who can meet your needs in the long term. The outsourcing specialist should be able to perform several tasks in a short period of time (a few weeks) to demonstrate their skills.

Build trust

To be able to trust the company in the future, make sure your outsourcing provider complies with your country’s legal, intellectual property and regulatory standards. Of course, put in place a non-disclosure agreement (NDA) to protect your ideas before revealing any confidential information about your project, clients, etc.

Maintain high transparency

Clear and transparent operations in addition to smooth and open communication between all parties helps to make each milestone a reality, improve team productivity and achieve set business goals. Thus, by sharing the KPI system with an outsourcing partner, the company gets real-time visibility into operations and can track progress.

Establish effective communication

When setting up outsourcing, it is essential to agree on the format, communication channels and timing to effectively manage different time zones and national holidays.

Pay special attention to management

Whenever possible, hire a local manager who will smoothly delegate tasks, oversee development or testing activities, report on progress or problems encountered, and motivate the team. He or she will also act as a liaison between the company and the offshore talent.

Be careful, this is not about micro-management, which could be seen as a form of mistrust by the outsourcing provider, which is not the goal!

Contact us!

Outsourcing can be a daunting project, but when entrusted to a reliable service provider recognized for the quality of its services, your company will gain a partner it can rely on to grow and survive in a highly competitive environment.

ProContact is more than a contact centre. Thanks to our trained, qualified, hand-picked and multilingual agents, we enable companies that choose us to gain flexibility and reduce their operating costs, which are currently important in the midst of an economic recession. To find out more about our services, click on our contact form, send us an e-mail or call us at (+33) 1 77 75 04 50.