Category: Business Strategy

Outsourcing Globally

Outsourcing is the term used to define the collaboration between two companies, usually from different countries, where one is the provider of services or processes on the other’s behalf. This model has been developing for the last 35 years and went through many modifications. In time, few types of outsourcing has appeared, the most popular ones are offshore outsourcing and Nearshore outsourcing. Offshore outsourcing is basically the teamwork between companies from distant countries while Nearshore outsourcing, it is much likely to be the same to the above-mentioned however, you cooperate with neighbouring countries or cities with similar time zone which allows more frequent visits and easier contact.

Offshoring is a distribution of specific business processes to an external specialist service provider. Most of the times, a business owner cannot handle all facets of a business process internally. Additionally, some processes are not permanent, and the organization does not aim to hire in-house professionals to accomplish the tasks.

Once the task is offshored to the service provider, he will take the accountability of carrying out the tasks and preserving the organization’s assets.

However, prior to outsourcing any section of your business to a third-party vendor, it is vital to understand the advantages of outsourcing. Although outsourcing presents a diversity of benefits to your business, it could also pose difficulties if not outsourced to the right service provider.

In these frantic times, being on top of things is a must-have if you want to keep your business afloat. However, not every company has the budget required to do it. How to combine cost-effectiveness with outstanding quality? Each company is diverse and needs different type of sustenance, but some aspects are permanently universal and rarely change.

Advantages of Outsourcing

  1. Cheap Recruitment and Reduced Operational Costs – Offshoring avoids the need to hire professionals in-house; hence, operational costs and recruitment can be minimalised to a higher extent. This is one of the major advantages of offshore outsourcing.
  2. Risk-sharing – One of the most critical factors shaping the result of a campaign is risk analysis. Offshoring certain components of your business process aids the organisation to swing certain responsibilities to the remote vendor. Since the outsourced team is highly-skilled, they strategize your risk-mitigating issues better.
  3. Focusing on core process – Offshoring the supporting processes gives the business more time to toughen their core priority. Plus, the trust and confidence that the other facets of the business are being well taken care by the professional remote team.
  4. Fleetness and Proficiency – Most of the times tasks are offshored to vendors who specialise in their field. The outsourced vendors also have equipment and technical expertise, most of the times better than the ones at the outsourcing organization. Efficiently, the tasks can be completed faster and with better quality output.

Furthermore, offshoring can offer much more than just the above-mentioned advantages. All to aid you make the most of your business’ budget and resources without hiring luxurious programmers to implement your ideas.

Do What You Do Best and Outsource the Rest

If you already tried looking for a business strategy, I’m sure you have seen this quote “Do What You Do Best and Outsource the Rest”. Well basically what it means that focus on your expertise and try to master it instead of working on a specific task that you are not really good at, why don’t just outsource this to someone else?

Outsourcing is a term used by small and business owners when they hire another people or company to do the work that they can’t complete or accomplish efficiently and effectively. Imagine if you are a programmer by profession and your boss try to ask you to create some graphics layout where in the first place this is not your forte and second you know deep inside that your designing skills is really bad.

If you are smart enough, I’m sure you will not accept this and will honestly tell your boss you can’t do it. Remember it is better to refuse or decline someone’s request that you are not comfortable doing it, if your boss is not familiar with outsourcing work, then I guess this Is the time where you try to explain the benefits and drawbacks.

Some obvious benefit is that when you pass this to someone else that works on this particular field or career, they can definitely do the job the way it should be. Second the time it would take to complete the project is much faster compared doing by yourself which can take a couple of days or weeks. Then lastly, you will see how much time and effort you have saved by taking this decision. Nowadays not just small to medium firms do this business strategy, even solo entrepreneurs are taking advantage of this brilliant idea and it turns out to be profitable on the long run.