How To Nail Offshoring – The First Time

How to nail outsourcing the - first time

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How to nail outsourcing the – first time

Offshore staffing is the world’s most powerful tool in business. It allows you to access a huge talent pool and save 70% on your staffing costs.

That is huge.

But many people try outsourcing and get disappointed.

Why is that?

Outsourcing is a tool, and people can misuse tools – or use them badly. Sometimes, you must learn how to use a tool to get the best out of a tool.

With offshore staffing, too many people choose the wrong tasks to outsource first.

Yes, you can offshore virtually any part of your business. However, there are easier parts and more difficult parts. There are parts with higher ROI and others with lower ROI. And some parts are high complexity and others are low.

It is best to offshore the easiest, least complex parts first. Build a level of understanding and mastery of those roles, and then you can escalate to the more complex functions.

How to nail outsourcing the - first time
How to nail outsourcing the – first time

People tend to outsource their problems, not their staff. Start the other way around.

People will select a really hard function of their business and try to contract an outsourcing firm to solve that problem.

This is not the right approach.

If you struggle to build the process yourself, the outsourcing firm will probably also struggle.

Delegation, not abdication

Many clients try to outsource the sales of their products, except they don’t yet have an established sales team or process. In fact, many people don’t really know if they even have product-market fit.

If offshoring fails in this instance – and it probably will – it is impossible to tell if the cause is the staff, the outsourcing firm, the sales process, the product – or the client.

Instead, it is much much better to offshore existing in-house processes that are tried and tested, stable, and have good visibility and metrics. These are the ideal candidates for offshoring. Suppose you already have clear metrics defining the process and quality of output. In that case, it is easy to replicate this process offshore, and also compare results based on cost, output, quality etc.

This transition will be smooth and certain.

When beginning your offshoring journey, choose easy targets first. It’s a good idea to get some wins on the board. Get used to offshoring, and then you can progress to more complex levels.

Ideal outsourcing roles for starters include:

UI/UX design, accounting, sales assistance (ISA), administrative, operations, marketing, etc.

The question for your business:

What opportunities do you see in your market?

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 3,900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.