How To Build Effective Work With Outsourcing
The pandemic accelerated the demand for outsourcing work. It became normal to hire remote specialists or teams for different tasks. Companies hired outsourced professionals for consultancy, service providing, or product development quite often in the last few years. The article will discuss choosing the right outsourcing company and organizing the collaboration effectively. Amoniac OÜ has vast expertise in outsourcing collaboration which we will share with you in this article.
Why Choose an Outsource?
Outsourcing is a well-known business practice of collaborating with third parties to perform tasks instead of hiring a new employee.
Based on statistics, revenue in the European IT outsourcing market will reach $117 million by the end of 2021. 70% of companies worldwide define outsourcing as a positive experience. At the same time, some organizations are still skeptical about hiring outsourced teams for work.
There can be a few reasons:
- The company already has a negative experience in collaborating with outsourcing teams.
- The company does not know how to manage the outsource team effectively.
Further, we will discuss dealing with these fears and having an efficient outsourcing collaboration.
The Benefits Of Outsourced Collaboration
Before jumping into a discussion on choosing the right to outsource firm, let's discuss how beneficial this collaboration can be for your business to grow.
The most significant advantages of outsourcing:
- Cost reduction. Outsourcing is an excellent tool for business optimization, such as ordering a service or product development from a third-party team and not hiring a new person. The list of things you can send to outsource can be pretty broad - PR, copywriting, development, etc. Usually, you will pay less for outsourcing than for the new employees.
- Focus on core tasks. When you outsource some jobs, you always release time to focus on strategic goals and planning. At the same time, outsourcing is not the same as project work (for example one-time contract for style development or logo creation). Outsourcing is continuous cooperation that allows businesses to promote growth and offer clients a broad spectrum of services based on contracts.
- Improve employees' skills. The following important feature is on-site outsourcing that brings contractors to your location for running the project. In this case, your employees can learn some skills they need for future tasks.
How To Choose The Reliable Company For Outsourcing
Once you learn how beneficial outsourcing collaboration can be for your business, you need to choose the best contractor to achieve your goals. In most cases, you will analyze your contractor's performance, previous work, and level of expertise.
Amoniac has broad expertise in working with outsourced development teams, and there are some additional recommendations you can keep in mind for choosing future contractors:
- As we mentioned already, you need to analyze the company first. Learn from their previous work and projects, search for reviews. In some cases, you can communicate with their previous clients to ensure the reliability of the outsourcing company.
- Be sure that you need an outsource service, not a new person on the team. To do that, you can analyze the scope of everyday work, the monthly salary of a new employee, and the cost of the same offer from an outsource company.
- Create a technical task for the outsourcers and discuss it before the cooperation. You need to be sure that the team you choose can handle all technical issues, knows the specific aspects of your industry, and can run the project from the beginning to the end.
- Create a detailed contract to define the responsibilities for each party. Also, you need to include the contacts of people responsible for the communication during the cooperation and outline what results you expect from outsourcing by the end of the project.
- Define how you will track the progress of each task during the contract. The practical work is based on KPI, and you need to define the measurement instruments before you sign the contract.
How To Build Effective Collaboration With Outsourced Contractors
Outsourcing some tasks can be helpful for business growth, but at the same time, it can be difficult to ensure effective collaboration if you do not have appropriate experience.
Here are some standard practices to help you organize effective collaboration with outsource team:
- Start with small tasks. It can be a big problem if the outsource does not have enough skills to finish. You can start with small trial tasks. After they are complete, and you find that the outsource team is dealing effectively with this type of task, you can shift to more complicated work.
- Plan effectively. The next step is to be realistic in planning and use tools for effective performance. You can have a week, month, and three-month planning to ensure that you are moving it-time with goal achievement.
- Define goals. It is essential to understand what you want to get from the outsourcing team at the end. How the final product can help you to achieve your business goals. Also, it is crucial to facilitate the goals for the team.
- Define milestones. After you outline goals, you can define milestones for the Team progress tracking. It is better to be accountable for smaller milestones and visualize the whole goal-achieving process by this productive methodology. Even the most complicated tasks can be broken down into smaller ones.
- Communicate and train your team. It is difficult to get good results without communication with an outsourced team. Clear and frequent communication can help you to avoid a lot of mistakes. You can negotiate to get a report on progress from outsourcers every day, week, or month. At the same time, you should be interested in more frequent communication, ensuring moving in the right direction. Moreover, your own team can learn from in-house outsourcing specialists and cover some tasks next time independently.
- Negotiate support after finishing the project. Before the project is completed, you need to define what type of support the outsourcing can provide after the product launch. In some cases, you can find critical mistakes in a few months of running the project. Moreover, you can decide to improve the project, and it will always be better to do it with the same contractors. Negotiate all those details before you start the work.
- Do not cut the critical costs. As we mentioned already, outsourcing is a great way to optimize the budget. But it does not mean that you need to cut essential costs of the project. Be accurate with your budgeting and decide what you can cut without a considerable risk for your business.
Businesses often think about outsourcing contractors as a way of money-saving. At the same time, you can outsource much more than that. It can help you to promote innovations, access new skill sets, and tools to help your business grow. To get practical cooperation with an outsourced team, you need to focus on expertise value. Contact our specialists if you need to discuss your case or find a contractor for your tasks.