Outsourcing is always a great way to get extra help for your startup company. However, it can also be a challenging endeavor to undertake. After all, there are a lot of things that you have to do. And then, there are a lot of things that can go wrong.
So, you might wonder. Is there any way to ensure that you are doing everything correctly? Luckily, the answer is yes. Let’s explore how you can be smart when outsourcing and achieve better results.
The Pitfalls During Outsourcing
To begin your journey towards smart outsourcing, you should understand first the pitfalls you might encounter. As mentioned earlier, outsourcing can sometimes be a complex undertaking. And because of that, you can encounter these pitfalls. When you are not able to properly navigate around them. They can make the effort harder.
Unclear Expectations
Proponents often tout outsourcing as a great solution to different business problems. However, that hype can sometimes make its actual value overblown. Because of that, you might come up with unrealistic expectations about it.
Such high expectations can affect a lot of your outsourcing decisions. For instance, you might be tempted to send out far more work than you should. That can pressure the outsourced team, resulting in various issues like inefficiencies and errors.
Not Providing Proper Guidance
Another common pitfall because of the above is thinking that outsourcing is a “fire and forget” weapon. While outsourced teams can indeed work independently, they still need to hear from you. Not properly guiding them about the work they have to do can lead to various errors. That can also result in longer completion times, as they struggle to accomplish the tasks.
Not Anticipating Additional Expenditures
Sure, outsourcing is well known as being a cost-effective solution. But that doesn’t mean that it will be cost-free. Not being able to anticipate these additional expenditures can result in more costs than you might want to incur.
That matter will require you to have more foresight about your outsourcing expenditures. Here, you should know what potential expenses can arise and how much they would be. But you should also be readily adaptable in case of unexpected costs.
Not Having A Proper Outsourcing Growth Plan
Often, you will be outsourcing only to fill in current needs. However, that doesn’t mean you should disregard a potential growth plan for your effort altogether. Not doing so can result in you not getting more out of your outsourcing strategy.
In particular, a usual result of not having such a plan is being unable to work around changes in your outsourcing providers. These companies can sometimes have a high rate of employee turnover. When such situations arise, you might be at a loss about what to do next to continue your work.
The Keys To Smarter Outsourcing
Smart outsourcing is all about planning your effort well. That ensures that your startup company can get more from it. With that, you need to know the keys to help you better build your strategy and make smarter outsourcing decisions.
The Right Set Of Tasks To Outsource
With outsourcing being a popular solution, there is the common notion that you can use it to run the entirety of your operations. While this is theoretically possible, it would often be an unwise move.
Instead, you need to be selective in the tasks you outsource. The idea is to choose the ones that would most benefit from outsourcing. That largely depends on the goals that you have for the effort. By establishing clear goals, you can better see which tasks to send out.
The Right Price Point For Outsourcing
Okay, so cost savings is one of the factors you often consider when outsourcing. But that doesn’t mean you should jump to those with the lowest prices quickly. On the contrary, you might want to consider ruling them out during the initial decision-making.
That is because what they offer at that price point might not always match your needs. While they might be able to cover your major requirements, they might not be able to take in the more specific ones. That is often due to these specifics being costlier to undertake.
The smart way to go here is to set your outsourcing budget according to the current market value for your chosen services. Look at the prices at which the highest quality services are offered. That will give you the best range to suit your needs.
Proper Risk Sharing
Another area that you should be smart about when outsourcing is sharing risks. You and your outsourcing provider should anticipate what kinds of risks you will encounter. From there, you can determine how to best share these risks.
Here, be clear about the thresholds. Tell your provider up to which point you are willing to carry the risk of failure. On the other hand, you would also want to be clear about the remunerations should your partner surpass expectations. These clear goalposts will encourage your partner to cooperate more closely.
Preparing For Scalability
Businesses might often use outsourcing as a temporary measure, but a smart leader should look beyond that. Think about your provider’s potential scalability. A good provider should be ready for this even if they are not fully capable yet.
When you have assessed that your partner is committed to scalability, both sides can begin planning how to make it happen. Here, you should consider how your business goals will align. For instance, think about what future services you might need from them. That will help them realign their business strategies to not just meet those future demands but also use them to improve their other businesses.
Delivering The Smart Outsourcing Solutions Your Startup Company Needs
Virtua Solutions understands well how vital outsourcing is for a startup company. As such, we offer the best solutions for your needs. Our team is ready to meet your current needs abd any plans you have. When you partner with us, you will get truly adaptable solutions that will take your business to the next level. Contact us today to discover more.