Ep #1 Is Outsourcing a Safe Bet?
Hey there, welcome to the first actual episode of Outsource HQ, the podcast headquarters for end-to-end outsourcing services. I’m Adam, your host.
Let’s start this off with a question that scares off a lot of start-ups and prevents them from expanding:
When you outsource, do you put your business at risk? Some of the misconceptions we’ve heard are ‘It’s less expensive therefore it’s low quality, or ‘I won’t be in control, they’ll just do things their way.’
You can hesitate. But… being skeptical about outsourcing can help you. There are 7% of small businesses that have a negative experience working with a service provider. Being one of them is your worst-case scenario. You avoid this when you know what you’re taking on. You deal with them from the beginning.
Now just because you think you have a problem, it doesn’t mean that it can’t be solved, so let’s tackle some:
Lack of control, security risks, and less accountability: these are the main hesitations against outsourcing. And the solutions are based on communication and the right tools and platforms that help streamline your process, keep the tasks and progress visible, and your information secure.
But is lack of control, really so bad? It just means you get out of being stuck in the middle of running your business. You should be communicating your preferences, and then your outsourced team can get the work done with minimal interference, right? Remember to set regular meetings or ask for milestone progress updates.
For security risks: Service providers have security policies in place to protect your data. They also invest in tools and software against threats in cybersecurity. Aside from this, you can request for non-disclosure agreements, NDAs, the big hush hush between you and whoever you’re outsourcing to.
To solve accountability and visibility, You should be establishing communication on platforms like Slack, Clickup, Trello, where you can centralize projects and timelines and everyone involved can see who’s working on which tasks. You can use real-time tracking software like Hubstaff and in-app tracking features of outsourcing websites.
Once you smooth over these friction points, you’re left with the advantages of outsourcing.
A good 93% of businesses have a positive experience with outsourcing. Some of them are even planning to outsource more. Why? Let’s break it up into 4 points.
One is that: You cut up to 70% of costs when you outsource. These are costs from taxes, employment, and training expenses. Third-party service providers have the resources that you don’t need to invest in if you outsource.
Number Two: Faster turnaround times. Outsourcing means you can have one specialist or a team devoted to specific tasks. Through task focus and expertise in the field, they get it done faster. That brings us to the next advantage.
Number Three: You access expertise in specific fields when you need them. For one-time or on-demand tasks like web development, graphic design, marketing, and customer support on specific seasons. Instead of hiring in-house or trying to DIY to mediocre results, outsource them.
Number Four: You improve your business operations. Increase the efficiency of your in-house team. Outsourced teams can support your in-house teams or become your marketing, customer support, or IT departments entirely.
Focus on your core areas like how 68% of US companies outsource at least one part of their business operations.
You have the upper hand in outsourcing. Companies like Slack, Google, and Microsoft all take advantage of the benefits of outsourcing so why not tap into the potential? You can go head to head when it comes to marketing or customer service with your toughest competitors when you access specialists who know how to get the job done.
Well, that’s it for this episode. I hope this has shed a bit more light on outsourcing.
In the next one, we’ll be looking into the difference between outsourcing and direct hiring.