Seven Ways You Can Make Your Outsourcing Smarter

Outsourcing may seem like a great way for your business to save money. However, if not deployed strategically, outsourcing can actually be counter-productive and have a negative effect on your competitiveness and bottom line. With that in mind, you can use these seven tips to make your outsourcing better managed.

Outsource for the Right Things
You should never outsource your core business functions. It would be like a director of a movie subcontracting another person to direct in his place. You would be giving up control of what you do best, since any core function you actually advertise or produce needs to be a part of the overall process. Instead, only outsource things that are supplemental to the creation of your product or service.

Properly Vet Providers
You shouldn’t assume a vendor will do a good job completing some of your business processes just because they offer their services. Instead, do a thorough job vetting the competence of such a company just like you would a regular employee. This should include visiting that company’s facilities in person to see them at work.

Never Outsource Intellectual Property
Whatever you outsource, make sure you have full control and ownership of your intellectual property. This includes product names, design work, narrative content, music, website domains, and more. Not doing so can come back to haunt you.

Consider Using a PEO Broker
PEO stands for professional employer organization. A PEO is a kind of company that other businesses can use to outsource payroll and HR services without giving up direct management of their employees. Tailored Solutions would be a good example of this kind of work. A good PEO broker can find the best services for a particular company’s needs.

Avoid the Highest and Lowest Priced Vendors
It may be tempting to choose a company to outsource based on the prices of the bids they present. This can be a mistake since you could be trading the quality of service for less expense. In general, there may be good reason to be suspicious of companies that charge too much or too little for their services.

Obtain Continued Support
Support services are very important for outsourcing. Without them, you won’t be able to correct mistakes or redirect the work in real time. Support services should also continue for a reasonable time after specific projects are finished.

Get Your Contracts in Writing
Outsourcing business processes is a big deal and requires very thorough contracts that go into the fine details of the relationship. Make sure everything is in writing and that you have backed up copies.

Outsourcing should only be one part of your tool box. When you choose to outsource, do it in a smart way. Being haphazard about it can have negative consequences on your overall company image.