Outsourcing: Evaluating the 3 Critical Areas of Efficiency

On November 26, 2012, in Outsourcing, by Business Development Group
The following are the three critical areas that need to be evaluated regularly to ensure efficiency in your outsourcing program

The following are the three critical areas that need to be evaluated regularly to ensure efficiency in your outsourcing program

There are many factors that affect the efficiency of your outsourcing operation. For an organization running an outsourcing operation in an offshore location, operational efficiency is naturally the top priority. However, ensuring efficiency in your offshore outsourcing program goes beyond operations. Just like any operating machine that needs regular maintenance checks, your outsourcing operation also needs to be checked and evaluated regularly to keep things running smoothly. The following are the three critical areas that need to be evaluated regularly to ensure efficiency in your outsourcing program:

Human Resources

Employee attrition is one of the major issues that an outsourcing firm needs to focus on. High staff turnover can incur huge costs including: recruitment and training costs, productivity losses, and payout commitments. Nevertheless, for an outsourcing operation to continue running smoothly, the Human Resources Department must coordinate closely with Operations and must be kept constantly updated about current needs for additional people. More importantly, the best practice would be to maintain a pool of talented applicants ready for any recruitment and training emergencies.

Related Article: The Cost of High Staff Turnover in BPO Companies

Information Technology

The Information Technology aspect of your outsourcing operation is indeed one of the most important areas to keep track of. There is of course, the issue of data security and compliance to international standards. For a firm looking to outsource certain business functions to external or offshore outsourcing service providers, it is important to ensure that your selected offshore outsourcing partner has the necessary security protocols for data security.

Related Article: Offshore Outsourcing Tips

Operations

Most outsourcing projects are heavily defined by quality, and output volume. Basically, regular management evaluations involve checking compliance to performance metrics. However, a usually overlooked aspect is the checking of the parameters by which these performance metrics are based. It is crucial to conduct regular evaluations on the effects these parameters are having on operational efficiency.

Related Article: Offshore Outsourcing: Signs Your “Long-Distance” Relationship Is In Trouble

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Outsourcing: Solution to Start-ups’ Skills Gap

On November 21, 2012, in Outsourcing, by Business Development Group
Start-ups basically focus on the technical side of the product or service they provide but are left hanging when it comes to the daily back office functions involved in running a company such as finance, human resources, and administration.

rs are confident that this momentum will continue. Both the government and private sectors have taken steps to address issues on workforce talent sustainability.Start-ups basically focus on the technical side of the product or service they provide but are left hanging when it comes to the daily back office functions involved in running a company such as finance, human resources, and administration.

Every start-up company, especially those operating in its earliest stages, are facing problems with in-house skills gap. Start-ups basically focus on the technical side of the product or service they provide but are left hanging when it comes to the daily back office functions involved in running a company such as finance, human resources, and administration. The biggest issue lies in the lack of in-house talent required for these functions.

Small Investment

Most start-ups face the challenge of dealing with limited resources. By tapping on outsourcing services, start-ups gain the advantage of being able to start the business on small investment and simply outsourcing non-core functions to an external partner or an outsourcing service provider. In fact, many start-ups have succeeded through this scheme. Outsourcing certain functions, like the hiring process for instance, allows start-ups to free up valuable investment resources and direct them to other areas of the business.

Related Article: How Start-Up Companies Can Benefit from Offshore Outsourcing

Bridging the Skills Gap

Outsourcing gives you access to skills and expertise that a start-up would normally be unable to reach. This will enable them to play in an even playing field with their bigger and more established counterparts. However, even with start-ups, it is important to carefully assess and determine which business functions to outsource. This is heavily dictated by the nature of the business, but most companies simply opt to outsource only the non-core business functions, those that do not directly affect the quality of the products or services they provide.

Related Article: The 3 Jobs Your Startup Should Outsource

Outsourcing has a lot to offer small and start-up businesses but its true value lies in its ability of getting business up and running. Facing today’s economic challenges and highly competitive global market, starting up and running a business with little investment and tapping on outsourcing have become a reality.

Related Article: Offshore Outsourcing Tips

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