Outsourcing is definitely one of the terms that characterize today's business world.
Much has been said about outsourcing over the last years and we all know that this concept is attributable to the economy of money and time. And maybe only a few of you know that in fact "outsourcing" means much more than only time and money efficiency.
Looking in history, one of the greatest success stories in the tradition to seek foreign help when possible has been the Japanese tale. Thus, after its revolution in 1868, Japan was on the quick path to modernization. They realized that they needed the assistance of experts, in this way they hired foreign technicians and engineers to set up their factory system and taught native Japanese how to operate the high-tech equipment.
Much has been said about outsourcing over the last years and we all know that this concept is attributable to the economy of money and time. And maybe only a few of you know that in fact "outsourcing" means much more than only time and money efficiency.
Looking in history, one of the greatest success stories in the tradition to seek foreign help when possible has been the Japanese tale. Thus, after its revolution in 1868, Japan was on the quick path to modernization. They realized that they needed the assistance of experts, in this way they hired foreign technicians and engineers to set up their factory system and taught native Japanese how to operate the high-tech equipment.
As the saying goes, what is old is new again and history always repeats.
A very important thing that must be pointed out is the fact that to solve future problems, we must understand what is occurring in the business world, without attaching “good” or “bad” to the forces behind the actions of businessmen. It is important to follow the historical model that the most influential American business historian Alfred Chandler set out: "value judgments are to be left out and only what actually happened should be talked about".
Therefore, the different goals will give far different results, and before talking about is that good or bad to choose to outsource, you must understand how it works, when to do it the best for your business and why it needs this.
Therefore, the different goals will give far different results, and before talking about is that good or bad to choose to outsource, you must understand how it works, when to do it the best for your business and why it needs this.
In this article, we will make a kind of "quantum physics" for your business understanding and its needs, and help you to decide how and when to outsource in order to get the best and quickest results.
Companies generally choose outsourcing in one of two ways: either, they outsource a single component of their daily operations, or they include outsourcing as a part of their business strategy.
1. What should you outsource?
This depends for sure of the field where you are acting like a company, and here we have:
- Tasks that are critical to your operations, and not a vital component of your strategy;
- Commodity tasks.
According to research by the American Psychological Association, businesses bear a 40% reduction in productivity when managing multiple tasks or projects at the same time.
When people work on multiple things, it not only takes more time to accomplish it but also increases their stress level.
Your task as a business leader is to avoid this. Moreover, you must see in outsourcing not only an escape from responsibilities or having someone to blame for any problems, but to outsource qualitatively. In this way, outsourcing will help your business and will achieve the main purpose for which it was created for.
Nowadays, it is easier than ever to choose to outsource for different tasks, such as: content writing, financial business tasks, web designing, administrative tasks, business research.
2. When should you outsource?
One of the best methods to decide whether or not to outsource a task is to perform a cost/time calculation. As you are doing this, keep in mind that outsourcing requires you to clearly establish goals and a timeline with your outsourcing team. If it is in another state or another country, you will also need to point out the need for clear communication and to take into account the differences in culture and language. You should take the time to make sure that you both are truly on the same page regarding goals and milestones, or the simple things about the use of the same phrases and terms when describing things.
Outsourcing ensures business continuity through controlling operational expenses and risk management. It also frees up more time for you so that you can release your stress levels and focus on what is the most important.
It is now a global phenomenon, and it is here to stay. If done right, outsourcing can help in automating business processes (BPA) and allow you to focus on your business key priorities.