4 Es of Outsourcing
Business outsourcing is a successful and growing global trend. According to a 2014 Grant Thornton survey, 40 percent of worldwide businesses either outsource now or are planning to do so. Despite reports about attempts to nearshore or reshore, offshoring outsourcing continues to be “alive and well.”
Do you currently outsource? Are you thinking about outsourcing? This Back Office Pro article describes the 4Es (or perhaps 4 Keys) of outsourcing — Efficiency, Economy, Experience and Engagement.
The First E — EFFICIENCY
Does outsourcing increase efficiency? If you outsource to cut costs and improve the efficiency of your business operations, you are in good company — this practical bottom-line motivation currently drives 53 percent of manufacturing companies to offshore outsourcing. However, being efficient includes much more than cutting costs. Getting things done more quickly while also freeing up your internal staff to concentrate on core business tasks will also contribute to better business efficiency.
Based on the Grant Thornton survey, the positive impact of outsourcing often depends on business size. For example, in smaller companies, 48 percent use outsourcing to ensure business continuity; 58 percent of larger enterprises outsource to improve efficiencies and reduce costs.
Improving efficiency is always critical in a competitive business environment. Outsourcing can provide the extra push to gain an edge on your competitors. Several fields have already established a positive track record of increasing efficiencies via outsourcing — data entry services, creative services, research and analytics, engineering services and transcription are five prime examples.
The Second E — ECONOMY
Strategic outsourcing can be a “Win-Win” proposition that improves economies in multiple countries. In an ideal situation, both “home” and “abroad” countries work together in a partnership fashion to make this arrangement successful for everyone. In an early 2015 example, the leaders of the United States and India met to expressly make outsourcing more viable for all parties.
Economic benefits of outsourcing are revealed in several ways that contribute to a higher standard of living for all parties. In the “abroad” country where tasks are outsourced to, valuable jobs are created. In the “home” country that originates the outsourcing decision, consumer costs are frequently reduced and investor profits are often increased as a direct result of outsourcing strategies.
The Third E — EXPERIENCE
Finding an experienced outsourcing partner such as Back Office Pro is always desirable — but it becomes almost a mandatory consideration when your company is outsourcing for the first time. For example, concerns about security, quality and risk are typically expressed by companies in the early stages of an outsourcing decision.
With an outsourcing company that truly has a “track record” in the global business community, these issues can be quickly dissipated. Make sure to do your due diligence before finalizing any outsourcing decision or contract — don’t “sign on the dotted line” unless you are comfortable that you are dealing with an outsourcing partner with at least a decade of experience.
The Fourth E — ENGAGEMENT
Engaging with your outsourcing partner on a regular basis works both ways. You must devote sufficient time for effective business communication with the outsourcing company. At the same time, your outsourcing partner should also emphasize the importance of business engagement by making it as simple and straightforward as possible. For example, Back Office Pro provides one designated point of contact and is available for customer support on a 24/6 basis. However, several key parts of the engagement process must happen at the front end of the project — understanding and communicating about issues such as objectives, scope, work processes, requirements and customer expectations.
Finding All 4 Es in One Place
Outsourcing can accurately be described as an ongoing journey — there can be unexpected stops and twists in the road as you proceed. Some outsourcing journeys will be longer and more complicated than others. For example, some outsourcing projects involve a series of different phases that include lengthy periods for planning, implementation and execution that are followed by stable operations and transformation. In other cases, you might simply need a key short-term project turned around for a valued client on an overnight basis.
Whatever you want and need to accomplish on your outsourcing journey, here is a practical and cost-effective strategy — find an outsourcing partner that can successfully meet your expectations for the 4 Es (or Keys) described in this article. Back Office Pro is a noteworthy example of a renowned global outsourcing company that can do a worthy job in all 4 key areas.
When outsourcing, don’t leave anything to chance. Develop an achievable vision; define your requirements; agree on a value proposition; and decide what you are looking for in a long-term outsourcing partner.
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