Grow Your Business By Outsourcing · 2017-09-09 · projects can be very expensive, and temporary employees don't always live up to your expectations. Outsourcing lets you focus your

HowtoWorkLess&MakeMoreMoney?

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www.outsourcingInsight.com

GrowYourBusinessByOutsourcing

2 www.outsourcingInsight.com

TableofContents

Introduction 3

Chapter1:WhatisOutsourcingandHowDoesitWork 4

Chapter2:TheBenefitsofOutsourcing 5

Chapter3:Whatyoushould lookforinanOutsourcingPartner 7

Chapter4:ChoosingTheRightOutsourcingDestination 8

Chapter5:TasksThatCanBeOutsourced 10

Chapter6:HowtoGetStartedonyourOutsourcingLifestyle 11

Chapter7:OutsourceandGain,MakeProfits 12

About theAuthor 13

3 www.outsourcingInsight.com

AsEntrepreneursorasdecisionmakers,wealllook howcanweincreaserevenuesanddecreasecosts.Jobscaneitherbedone in-house, whicharetimeconsuming, morepersonnel andalotofotherparameterswhichaffectcostswithinthecompany.

Whenwebegin,wewishtogetourhands dirtyintoeverytaskoftheBusiness,nomatterhowbigorsmall.Butasthingsbegintoshapeup,westarttodwellintoaspectssuchaswheredoes itmakemoresense toinvestthefunds intheBusiness? Compromising ontimewithfamily,nearanddearoneswhilesettingupfromthescratchandnowwewishtorepaybacktofamilywithqualitytime.Thisiswhenwebegintothinktogetthetaskdonebysomeone.

Thinkaboutit,youhiresomeonewithinyourcompanyandassignatask,isbasicallyoutsourcing andassigningthatpersontoaccountabilitytogetitfinished.However,thistoprovestobeacostlyaffairforBusiness functionsnowsinceyoucanleveragefromothercompaniesexpertiseandgetthetaskdonebythem.

Introduction

4

Sowhatreallyisoutsourcing?Wantingtogeneratemoreleadsbuthands arefull? Lookingforpartnerstohelpinthegrowthofyourentity?Notwantingtotakecareofstuffwhichdoes nothavetoomuchofanimpactonrevenuestreams?

Simply put,outsourcing istheactivityorprocessofassigningthetasktoanothercompanyorperson, lettingyoufocusonyourcoreresponsibilities.Theseoutsourced companiescomewiththeexpertiseandexperienceofgettingtheworkdone,withpossibly moreexpertiseandlessercostsforyourBusiness process.

OutsourcingalsogoesbyBusinessProcessOutsourcing.

Indoingso,whilstgettingthejobdone, companiesalsoavoidotherprocessessuchas:

• Avoiding givingbenefits totheiremployees

• Statutorylegalrequirementsforeachpersonnel

• Havingtomanageateambythemselves

Business ProcessOutsourcingletsyoufocusonwhatyoufeelareyourcorejobs andresponsibilities, whileholdingaccountablethejoboutsourced tothecompany.

Chapter1:WhatisOutsourcingandHowDoesitWork?


Outsourcing

Defineclearobjectives1

ChooseRightVendor 4

Haveaclearplan 3

Setrealisticexpectations2

5

While afewarementioned intheIntroductiontoOutsourcing, thebenefitsneedtobelookedatinalargerperspective.

Controlcapitalcosts- Cost-cuttingmaynotbetheonly reasontooutsource,butit'scertainlyamajorfactor.Outsourcing convertsfixedcostsintovariablecosts,releasescapitalforinvestmentelsewhereinyourbusiness, andallowsyoutoavoidlargeexpenditures atanystageofyourbusiness, earlyorlate.Outsourcing canalsomakeyourfirmmoreattractivetoinvestors, sinceyou'reabletopumpmorecapitaldirectlyintorevenue-producing activities.

Increaseefficiency- Companies thatdoeverythingthemselveshavemuchhigherresearch,development,marketing,anddistribution expenses, allofwhichmustbepassedontocustomers.Anoutside provider's coststructureandeconomyofscalecangiveyourfirmanimportantcompetitiveadvantage.

Reducelaborcosts- Hiringandtrainingstaffforshort-termorperipheralprojectscanbeveryexpensive, andtemporaryemployees don'talwaysliveuptoyourexpectations.Outsourcing letsyou focusyourhumanresourceswhereyouneedthemmost.

Startnewprojectsquickly- Agoodoutsourcing firmhastheresourcestostartaprojectrightaway.Handlingthesameprojectin-housemightinvolve takingweeksormonths tohiretherightpeople, trainthem,andprovidethesupporttheyneed.Andifaprojectrequiresmajorcapitalinvestments (suchasbuildingaseriesofdistribution centers),thestartupprocesscanbeevenmoredifficult.

Focusonyourcorebusiness- Everybusiness haslimitedresources, nomatterhowsmallorbig,andeverymanagerhaslimitedtimeandattention.Outsourcing canhelpyourbusiness toshiftitsfocusfromperipheralactivitiestowardworkthatservesthecustomer,anditcanhelpmanagerssettheirprioritiesmoreclearly.

Leveltheplayingfield- Mostsmallfirms simply can'taffordtomatchthein-house support servicesthatlargercompaniesmaintain.Outsourcingcanhelpsmallfirmsact"big"bygivingthemaccesstothesameeconomiesofscale,efficiency, andexpertisethatlargecompanies enjoy.

Reducerisk- Everybusiness investmentcarriesacertainamountofrisk.Markets,competition, governmentregulations,financial conditions, andtechnologies allchangeveryquickly.Outsourcing providers assumeandmanagethisriskforyou, andtheygenerallyaremuchbetteratdecidinghowtoavoidriskintheirareasofexpertise.

Chapter2:TheBenefitsofOutsourcing


6

Since you don't have to invest ininfrastructure, you can also save onmaking unnecessary fixedinvestments.

Savingsof60%

Benefits Outsourcing can help you see anincrease in almost every aspect ofyour business, and I’m talking acrossthe board.

IncreaseinyourBusiness

Outsourcing to countries such as thePhilippines can give you access tocost-effective services.

CostAdvantages

Outsourcing enables you to create anabundance of extra time for you towork on other things that willultimately make you more money.

SaveTime

Your organization will be free toconcentrate on your core money-making activities.

ConcentrateonyourCoreBusiness

With timely del iveries and high-quality services you can impress yourcustomers.

ImprovedCustomerSatisfaction


7

Its one thing to decide that outsourcing is good for your company, but anotherto find the right partner to get the job done.

Defining what you want: This is like a client-vendor relationship. Its importantto let your outsourcing partner know what you intend to draw out of therelationship. Defining the scope of tasks to be outsourced and their intendedbenefits is extremely critical, and organizations that do not understand thedifference between the two – and focus only on scope & cost – are more likelyto end up having unhappy outsourcing experiences.

Experience : While getting tasks done from your outsourced partner, itsimportant to understand the experience and expertise they come with. Thiscan be taken as an interview, a review for the company you intend to outsourceto. Understanding how long they have been around in the Business, analyzingwhile holding preliminary conversations whether they speak the language youwant to hear and reading a bit about them will help your decisions get easier,by leaps and bounds.

Ask for work samples : Its okay to ask for references or work samples of tasksperformed by them earlier. This gives you confidence that you are dealing withthe right company. In doing so, while speaking with them, if they are able tohelp you understand how they achieved the result they show on the worksample, you have you had made the right decision.

Pricing : While a decision in taken to outsource a particular task, this isprobably the most important factor on the minds of Management. Remember,companies who quote a lesser price are not necessarily the best ones to testwith. Similarly, companies who boast of a higher price and quality, are notnecessarily the best ones either. Determine the price internally at which youwish to get the task done. This needs to also factor in the price as acceptable tothe company you deal with. Negotiating too much on the price may lead to thecompany not picking up the project itself. Are they not an entity, bythemselves? Depending on various factors such as: Longevity of the companyin the domain, expertise you feel they have an advantage on, how comfortabledo their representatives make you feel when you speak with them on apossible partnership, are all factors that you need to consider before setting aprice.

Communication and turn around times : Outsourced companies should bebest at this. Communication is their mainstay and that is easily identifiable inthe way they respond to you. Such companies also are well aware that projectsare time bound. Each activity needs to be completed within certain timeframes. Even if it is say a sales process, or lead generation process, anaccounting or a managed healthcare program, they specialize in getting thetask done within the prescribed time frames.

Chapter3:WhatyoushouldlookforinanOutsourcingPartner


8

Onshorevs.Offshoreoutsourcing

While outsourcing, itsimportanttoknowwhetheryouwishtooutsource toacompanyonshore oroffshore.Thesetermsareeasytoidentifysinceonshoremeansgettingthetaskdonebyacompanyinthesamecountryvisavis.offshore, fromacompanysetupinadifferentcountry.

Outsourcing tooffshorecountries becamepredominantprimarily becauseofthecostfactor.Andatthesametime,youcanstillhold thesecompaniesaccountableforthetasksperformed.Indiaemergedasatopcountrytooutsourcetointhepastdecade,whichcreatedanewopportunity ofjobsforthem.

However,inrecenttimes,othercountriespickedupthistrendandwenowseeChina, Philippines, Thailandandafewothercountries.

Oneofthepre-requisites ofoutsourcingtoanothercountry,istheeasewithwhichtheycanspeaktheEnglishlanguage.Indiaruledtheoutsourcing spaceforoveradecade,beforeothercountriesrealizedtheimpactofrevenuegenerationandboosttoeconomyandhence,youseePhilippines whichbecamethemostfavoredcountrytooutsource.

Serenebeaches,almosteveryonespeakingaffluentintheEnglish languageandahistoryofperformingtaskswellthatareassigned tothem,heldthePhilippines ingoodsteadforquitesometime.

Indiatodaystillstandsattheperilofskilled jobswithPhilippines matchingitineveryaspect.

Chapter4:ChoosingTheRightOutsourcingDestination- [India/Philippines]


9

This south-east Asian country with 7,107 islands in total has now been at theforefront of the BPO industry for over a decade and is known by Fortune 500companies and other organizations to offer a top caliber labor force, especiallywhen it comes to voice-based campaigns. To prove this overall standpoint,research was performed by top North American universities, confirming thatPhilippine outsourcing employees work harder, with higher degrees of skill andwill factors, thus enabling them to exceed expectations and be dedicated inwhat they do, each and every day.

Without a doubt, the Philippines is the fastest growing country in theoutsourcing industry, and quickly becoming the destination of choice forindividuals and companies in the West that are looking to outsource parts of, ifnot the entirety of their customer service, admin support and sales workforce!

Chapter4:ChoosingTheRightOutsourcingDestination

2009

35%

90’s

30%


10

Thelistisincreasingbytheday.LetstakeanexampleofanHRfunction. Payrollmanagementsystems,legalandstatutorycompliances areoutsourced intimestoday.

Belowareafewsuchtasksthatcompanies prefertooutsourcesotheycanfocusontheircorecompetencies.

•ManagedHealthcare

•BookkeepingandTaxation

•Telesales

•Backoffice/Administrativework

•Content/Blogging

•Appointmentsetting

•Surveys

•Research

•Editingroles

•Graphicdesigning

•Transcription

•ManagingSocialMediaaccounts

Theabovestilldoes notcoveralltasks.Thissignifies theimportanceagainofoutsourcing sinceifoneoranyofsuchtasksareoutsourced, companiescanfocusonothercorecompetenciessuchascostsaving,increasedfocusonemployeeefficiency etc.

Chapter5:TasksThatCanBeOutsourced


11

Nowthatyouhavedone thefirstbitbysearchingandtryingtoidentify therightpartnerandreadaboutoutsourcing, itsimportanttogetstarted.

Which processortaskoftheyourBusiness doyouwishtooutsource iswhatyouneedtoidentify?

Ifthatisdone already,you caneitherchoose tooptforaVirtualassistant(whichcomeswithitspitfalls suchaslackofsupervision, internetconnectivityissues etc.)orchoose acompanythatcanprovide youwithmultiple services.

Ofcourse,itwouldmakemoresensetoresearchwellandoutsource onetaskatatimetothemtoseehowtheycanworkinarealenvironment andfulfill thetask.

Ofcourse,ifyouopttochoose foracompany, itwouldhaveanadditionalexpensesincetheyalsoneedtotakecareofexpenses suchasinfrastructureandresourcestheydeploy forthetask.

Itsalwaysadvisable tospeaktoanexpertfromtheindustry onthisandthendecideontheoption youwishtooptfor.

Chapter6:HowtoGetStartedWithOutsourcing


12

Sitbackandmakeprofits.Thatiswhatshould beatthecoreofyouroutsourcing strategy.

Salesisaneversatisfying task.InordertogainhighergoalsortargetssetonSales, youneedtodeploymorepeoplefromtimetotime.Yesweliveinadigitalworldtodaythathelps usmaybetogettothedesiredresults.

Buttechnologystillhasnotreplacedhumans tothatextent.

Moneysaved,ismoney earned.ThisBusiness principlewouldneverdieorgooutoffashion.

Whenyoucanhiresomeone togetthejobdoneathalfthepriceyouwouldpayinyourcompanyforthatresource,would youstillprefertomanagethesetasksin-house?

Chapter7:OutsourceandGain,MakeProfits


13

PratikHambardikerisatechnologyveteranspecially atsettingupSalesandMarketingfunctions intheoutsourcingBusiness.Hestartedwithasmallteamof2people inthebusiness whichgrewtoover600overadecade.

Heranmultipleprocesses suchasTaxandAccounting, ManagedHealthcare,Leadgeneration,Sales,MarketSurveys, RPOjobs andmore!

Fromdealingwithrepresentativestomanaginglargeteamsandseniorpersonnel overthelast15years,hehasshaped careersformorethan15000people.

HecanbecontactedviaLinkedIn &Twitter @pratikh

About the Author


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Grow Your Business By Outsourcing · 2017-09-09 · projects can be very expensive, and temporary employees don't always live up to your expectations. Outsourcing lets you focus your