The global trend of outsourcing is not set to change any time soon. A total of 40% of the world businesses are either outsourced or were planning to, according to the Grant Thornton survey from 2014. Offshore outsourcing is thriving.
As the IT industry advances, so does the world of business. Systems are improving and service outputs are becoming more sophisticated and companies in similar fields are now working together to become even more streamlined.
This article is going to discuss the importance of Efficiency, Economy, Experience, and Engagement of outsourcing.
Efficiency
If you are looking for a way to cut costs while improving efficiency, you are not alone. This is the main reason for 53% of manufacturing companies to offshore outsourcing. Efficiency is not just about reducing expenditure. It’s about doing things more quickly and allowing other staff to focus on core business capacities
The same Grant Thornton survey showed that 64% of southern European countries outsourced or were planning to, compared with just 26% in UAE and another 26% in South-East Asia. 48% of businesses chose to outsource to maintain business output, whereas 58% wanted to reduce costs and improve efficiency
This might not always entail a massive jump in efficiency, but it may be enough to push you ahead of your competitors. Some of the most noticeable examples are in the data entry services, creative services, research and analytics, engineering, and transcription.
Economy
Something that is often overlooked is the positive effects on economies both at home and abroad. Home countries that choose to outsource are able to reduce costs and therefore increase profits. Those countries that provide outsourcing services create jobs and improve the standards of living.
A fine example of this win-win situation is when in 2015, leaders of the US and India met with the intention of making outsourcing more viable for all those involved. Since then we have constantly seen substantial growth in the US market size.
Experience
When looking for an outsourcing company, it’s crucial to find one with experience, more so if this is your first time. Most companies have listed security, quality, and risk as their concerns with outsourcing.
It is necessary to find an outsourcing company that has a solid reputation, whether that’s in their own country or globally. Research the company before signing any type of contract. Where possible, make sure your outsourcing company has experience in the desired industry.
Engagement
Outsourcing is not a case of “passing the buck” and letting them get on with your project. It is necessary to engage with your partner on a regular basis. This will require you to dedicate some time for effective business communication. That being said, your outsourcing partner should provide the simplest and most effective way to contact them
When engaging with your partner, you should continuously discuss the project objectives of each stage, the process and progress, what you require, and the exact expectations of your clients.
An Outsourcing company with all four Es
Each company’s outsourcing experience is going to be different. Projects may vary in length and complexity. When searching for an outsourcing company make sure you have a clear and well-defined plan. Both you and your outsourcing partner must be clear on the project, the steps and stages to complete the project, the timeframe, and the budget