Building a successful business with outsourcing

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Business process outsourcing continues to be a great solution for companies to enhance their operations and slash costs. It’s not just big firms that outsource these days – even small businesses are reaping the benefits of hiring outsiders to handle non-core tasks that they cannot manage due to time and budget constraints.

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Building a successful business with outsourcing

  1. 1. Building a Better Business with Outsourcing
  2. 2. Building a Successful Business with Outsourcing Organizations should have an idea on what and when to outsource to gain the many benefits that this strategy offers. Business process outsourcing continues to be a great solution for companies to enhance their operations and slash costs. It’s not just big firms that outsource these days – even small businesses are reaping the benefits of hiring outsiders to handle non-core tasks that they cannot manage due to time and budget constraints. Technology has advanced to such an extent that there is a ready pool of skilled professionals able to work from anywhere in the world to carry out tasks such as transcription, web designing, HR, medical billing and coding, book-keeping, and much more. BPO companies offer such services, allowing their clients improve productivity and revenue without the overhead expenses associated with payroll taxes, health insurance, and worker's compensation. The outsourcing company enjoys economies of scale which are passed on to their clients through affordable pricing. In fact, small businesses that rely on such service providers are even in a position to compete effectively with bigger competitors. To succeed, entrepreneurs should know when and what to outsource, and how to find the right service provider. When to Outsource After working as the manager of a law firm for a few years, Laura Smith decided to start off on her own. At first, she thought she could manage day-to-day tasks by herself, but soon found this unrealistic as she needed to focus on her core operations. She began delegating tasks such as book-keeping and hired a virtual assistant to manage her legal transcription, data entry and document management tasks. Within just six months, Smith saw her revenue double. www.managedoutsource.com 1-800-670-2809
  3. 3. The right time to outsource can be different for different businesses. If you get a new project and find that it may not be worthwhile to hire more in-house staff, the best solution is to outsource. Small businesses would do well to outsource from the start. Smith grew her business with outside help from a book-keeper and virtual assistant, transcriptionist, web designer, ghost writer, and project manager. What to Outsource You should outsource non-core activities that support the functioning of your core activities. For example, a small business that focuses on product design should not outsource anything related to the developing of internal design or design activities, but rely on assigning routine office tasks such as payroll, IT and so on. A legal firm looking to digitize its paper documents can assign the task to a document scanning company. The type of tasks to be outsourced can be categorized into three headings. • Highly skilled expertise - hiring outside help for periodic financial analysis and book-keeping checks is more cost-effective than hiring a full-time expert to handle these tasks. • Highly repetitive tasks - Accounts payable, transcription, data entry and document conversion fall I this category. • Specialized knowledge – If you don’t need or can’t afford IT support on a full-time basis to manage your accounting system, rely on an external service provider. Selecting the right BPO Company Selecting the right outsourcing company is one of the most difficult tasks firms face today. Thorough research is required to identify a service provider, specialized in a particular domain. • Start research from your own network by collecting recommendations from business owners, coworkers, or any one experienced in this field. Online platforms www.managedoutsource.com 1-800-670-2809
  4. 4. like LinkedIn and Twitter make it easy to expand your search and ask for recommendations. • Placing advertisements on your website and submitting requests for proposals to professional trade organizations is another option. • Online services such as oDesk, BidModo and eLance serve as virtual marketplaces for contractors and business owners to trace outsourcing partners. Pay attention to the feedback of other employers before recruiting freelancers. • Outsourcing sites helps to identify how previous clients rate the services BPO companies. • Make sure the firm you are contracting with has experience in the particular task you are looking to delegate. • Identify the performance metrics for each task you want to outsource such as speed, accuracy, confidentiality, and so on. Forging a Successful Relationship Selecting the right service provider is not enough for successful outsourcing. Create and submit a specific contract that outlines your specific expectations. It is very important to be clear about requirements and expectations at the very start. Negotiate the cost. This would depend on the type of services you are buying, the skill level and location of your provider, and your own preferences. Then relinquish control and allow your hired team members to carry out their job efficiently. Micromanaging outsourced task is not healthy as it would destroy the very purpose of contracted help. www.managedoutsource.com 1-800-670-2809
  5. 5. Overcoming Challenges Language barriers and time zones are the major challenges with offshore services. Language barriers can pose problems in effective communication whereas time zones can cause inconvenience as productive hours are different for clients and service providers. Security of customer and business data is another major challenge. To overcome such challenges partner with a reputable Business process outsourcing company that offers adequate security measures. For example, if you are a healthcare provider, make sure you contract with a HIPAA compliant medical transcription company to handle medical transcription. BPO is an affordable, proven strategy that allows you to focus on your core tasks and boost your productivity by saving payroll and infrastructure expenses. Making the right outsourcing decision can help you plan for the future and make the right decisions to attain your goals. www.managedoutsource.com 1-800-670-2809

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