Outsourcing Strategy – A Focus on Best Practices - Pacific ...
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Outsourcing Strategy – A Focus on Best Practices · Reduced labor/project costs · The ability to tap into a new knowledge base without training employees · Time ... Skiptocontent Shareonfacebook Facebook Shareontwitter Twitter Shareonlinkedin LinkedIn BestPractices,Blog,HumanResources,Outsourcing OutsourcingStrategy–AFocusonBestPractices Inourpreviousarticle,Outsourcing101,wegaveyouageneraloverviewofoutsourcing;whatyoucanoutsource,whentodoit,howtodoitandpresentedacaseforwhyyoushouldoutsourcecertainprojects,especiallyasastart-upbusinessoronefocusedonanewgrowthphase. Now,let’stalkaboutthedetailsandprovideyouwithsometipsonthebestwaytouseoutsourcingtoyourbenefitandavoidthepitfallsandpainsthatsometimesgoalongwithanoutsourcingstrategy. First,let’saddresssomeoftheprosandconsofoutsourcing: PotentialBenefits(Pros)ofOutsourcing Reducedlabor/projectcosts Theabilitytotapintoanewknowledgebasewithouttrainingemployees Timemanagement–freeupyourtimeinvolvedwithday-to-dayimplementationandtaskwork Flexibilityandspeedtomanageprojects Timezonefactors(procomponent:dependinguponyouroutsourceteam,youcanhaveyourteamworkingwhileyou’resleepingoronweekends) PotentialChallenges(Cons)withOutsourcing Controloverprojectcommunication Privacy andintellectualpropertyconcerns Slowresponsestimes Languagebarriers(inthecaseofoverseasoutsourcing) Timezonefactors(concomponent:sometimesit’smorechallengingtocoordinateschedulesiftimezonesarevastlydifferent). Whatisthebestwaytoovercomethechallenges,takeadvantageofthebenefitsandhaveasuccessfulexperiencewhenusinganoutsourcingstrategy? Oneofthesimplestandbestwaystohavethegreatestsuccesswithoutsourcingistohaveaclear-cutunderstandingabouttheworkyouwanttooutsourceandhaverealisticexpectationsabouttheoutcome. WhatShouldYouOutsource? Asimpleandpracticalwaytodetermineoutsourcingtasksorprojects,orevenlonger-termrolesinyourorganizationistostartbyaskingyourselfsomekeyquestions. Oneofthemostpowerfulquestionsyoucanaskyourself,andyourin-houseteamisthis: WhatisthehighestandbestuseofYOURtime?Insmall-tomid-sizedfirms,alotofwhatdeterminesyouroutsourcingstrategyisansweringthequestionofwhatmakesthemostsensetooutsource. WhetheryouareaC-levelexecutiveorprojectmanagerinyourcompany,askyourselfthesequestions: Whatareyouspendingthemosttimeonthatistakingyouawayfromyourmostproductiveroleinthecompany? Areyoufocusedonrevenue-andefficiency-generatingactivity? Ifnot,whattasksshouldyoudelegateoroutsourcetoprovideyourselfwithmoretimeforyourmosteffectivework? Whatdoyouenjoydoingthemostinyourorganization?(usuallyagreatindicationofthebestuseofyourtime) Whatareyounotverygoodatbutyou’redoingitanywaybecauseof“time”constraints,“budget”orother“excuses?” Whatdoyoureallydislike(is“hate”toostrongaword?)doinginyourorganization? Onceyou’veansweredthesekeyquestions,youshouldhaveagoodframeworktocreatealistofthemostimportanttaskstobeoutsourcedinyourorganization.Thenyoucanmoveontothenextsteps. AChecklistforOutsourcing Areyouclearaboutthetaskorprojecttobeoutsourced? Doyouhaveanoutline,manualorattheveryleast,clearinstructionsaboutthetaskorprojecttobeoutsourced? Specifictask/projectdescription Expectedperformance Cost/budgetofproject(isitbilledbythehourorbytheproject?) Cleardeadline/duedate Skillsrequired Resourcesrequired Whoinyourorganizationwillbeinterfacingwithandmanagingtheoutsourcecontractororoutsourcefirm? Ifthisisataskthatislikelytoberepeatedoverandover,cantheinitialoutsourcecontractorprepareastep-by-step“manual”oroutlineofhowtocompletethistask? Thenyouhavearesourceyoucanuseagaininthefuture,eitheraspartofanoperationsmanualorasatime-savingresourcetopassontoanotheroutsourcecontractorintheeventyourinitialcontractordoesnotworkout. Itisaveryproductiveexercisetostartmakinglistsororganizationalchartsshowingthetasksthatarepartofyoureverydaysystems. Youwilllikelyfindthattherearemanytasksthataresimplyboggingdowninternalresourcesthatcaneasilybeoutsourced. Youwillprobablyalsofindholesinyoursystemsthatcanbefilledbyoutsourcedresources.Andasyoudigdeeper,itisquitelikelythatyouwilldiscoverthatthereareveryfewactivitiesinyourbusinessthatactuallycannotbeoutsourced. Keepanopenmind,doyourexplorationandseehowyoucanraisethebarinyourcompanybyoutsourcingprocessesandtasks. Efficiency,productivityandprofitswillallbepositivelyaffected. Searchfor: Categories Accountability Accounting Benefits BestPractices Blog Bookkeeping Budgeting BusinessGrowth BusinessStrategy CFO CFOStrategy Content EmployeeBenefits EmployeeCompensationandBenefits EmployeeManagement Events Exit&SuccessionPlanning FinancialStrategy Hiring HumanResources InformationTechnology MarinBusinessForum MeasuringResults Outsourcing Performance PressReleases Quickbooks Recruitment StaffManagement Startups StrategicDevelopment Systems Types
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