Outsourcing best practices for beginners

What are the best outsourcing best practices for beginners?

The key outsourcing best practices are to go slow, pick a transparent partner, look beyond freelancers, respect cultural differences, and choose a flexible BPO.

• Know exactly what you need before you sign with any provider.
• Choose a partner that is open about its people, process, and pricing.
• Pick a BPO that can scale up or down as your business changes.

Over the last few decades, outsourcing has become a common business practice. So more companies now turn to outside providers for everything from manufacturing to software. However, the trend can confuse those who are new to it. For example, they may not know where to start or what to seek in a partner.

In the 433rd episode of the Outsource Accelerator podcast, Dean Pascoe, founder and president of Boomering, shares outsourcing best practices for onboarding clients well. Pascoe notes their work on “a training program, not only just for staff, but we went to the trouble of producing a training manual for clients as well.”

What is an outsourced virtual team?

Outsourcing and virtual teams go hand in hand. First, a virtual team is made up of remote workers. Meanwhile, outsourcing sends work to places where labor costs are lower.

Virtual teams are now more common, especially for small firms with no budget for full-time staff. Still, large firms use them too when they need special skills. For this reason, a strong virtual team suits many outsourcing best practices. As a result, this setup has grown fast thanks to its low cost and flexibility.

Why outsource virtual teams?

As technology has improved, remote work has become easier. So companies can now hire top talent from around the world. By using outsourcing best practices, they can enjoy the full value of virtual teams.

Here are the main reasons companies outsource their work:

• You do not need to hire a whole department. Instead, you pick specialists to help you reach your goals.
• You can work with people worldwide, so you reach talent your local area lacks.
• Outsourcing cuts costs because you skip the overhead of in-house hires.
• Outsourcing gets more done in less time, since you tap many resources at once.

Many firms also weigh the wider benefits of outsourcing before they start.

Best practices when seeking an outsourcing partner

Is it your first time to outsource? Then keep these outsourcing best practices in mind.

Go slow and understand

Taking on a partner can feel overwhelming at first. So the first best practice is simple. Know exactly what you want from a BPO partner. To start, ask yourself these questions:

• What services does my business need?
• What industries does my business work in?
• Which processes do I need to streamline?

Of course, speed matters, but not at the cost of quality or security. So there is no need to rush. Dean Pascoe agrees: “The best advice is go slow, understand who you’re working with, and find the right partner for you. Don’t jump in.”

Work beyond freelancers

Dean notes that Boomering has “[picked] up a lot of customers that went down the freelancer route, and they were influenced by price to start with.”

Do you need help with the whole process? Then freelancers can cover some parts, but not all of it. For example, they work well for data entry or transcription because they are fast and remote. As Dean says, freelancer rates can look more tempting than a full salary.

However, freelancers may lack the depth for complex projects. Dean also flags the risk of working with one person. “What [companies] don’t realize is, let’s say that if you hire a personal assistant to help you out, and you’re busy working on projects, etc. If that person disappears, you’re left in the dark, you’ve got no one to turn to, you got no one to pick up your data, etc. This is where a BPO can help.”

Look for transparency

One of the most important outsourcing best practices is to pick a transparent partner. So make sure your provider is open about its offerings, process, and services. Transparency keeps both sides on the same page.

As Dean puts it, “This is very, very basic knowledge… but I really believe that [companies] need to find somebody that’s very transparent, will work with them and appreciate the level that each customer is at.”

Dean and Boomering know that “everyone’s experience with offshoring is at a different stage in the circle.” He calls their method a “cradle to grave mentality.” In this approach, “[Boomering] talks through [their client’s] needs and goes through our business outsourcing blueprint, and map out their project or offshore team.” He adds, “Whatever we sell, we’ve got to live by, and hence why we have no lock-in contracts.”

Understand cultural changes

Another key best practice is to grasp the cultural differences between the countries you work with. Each country brings its own set of challenges.

For example, cultural gaps can make outsourcing harder, especially with new languages or norms. So firms should review key areas like communication style, engagement, and service standards. A good BPO helps here. In fact, it knows your needs and has worked with many industries. Many teams also study outsourcing to the Philippines before they choose a base.

For his part, Dean is glad to guide clients. He says, “a client really needs to understand cultural changes from Australia or America to a Philippine culture. And they well and truly need a partner that can guide them.”

Seek flexibility

Finally, pick a partner flexible enough to adjust as your business grows or shifts. This includes scaling up or down as needed. A flexible offshore staffing model makes this easier.

Dean stresses this point. “This allowed our customers to scale down as much as they can scale up. So in good times or bad times, or if people have a business that needs to be agile, having a BPO in their back pocket, or working with them and understanding them can really make a business more agile.”

The benefit of outsourcing through a BPO

Many companies outsource to a BPO because it makes good business sense. A well-run BPO brings the technology, setup, and staff you need to grow. It can also support models like staff leasing as your team scales.

It is not always easy, though. As Dean says, “it’s not just a turnkey operation. The more you’re involved, the better something turns out.” He goes on, “Having that right BPO behind you, we get to help you take a lot of that noise away. All those HR noises, all the IT, and finding the right staff in the Philippines is always key to the start of the success.”

Do you want to try outsourcing? Then you can reach Dean Pascoe through his LinkedIn. Also, look up Boomering‘s official website and listen to episode 433 of the OA podcast here.

Frequently asked questions

What is the first step in outsourcing for beginners?

Start by mapping your needs. First, list the tasks you want to hand off. Next, set clear goals and a budget. So you can brief a partner well from day one.

Why choose a BPO over a freelancer?

A BPO gives you a team, backup, and steady support. A freelancer works for simple tasks. However, a BPO handles complex, ongoing work with less risk if one person leaves.

How important is transparency in an outsourcing partner?

It is vital. An open partner shares its process, people, and pricing up front. As a result, both sides align, and trust grows over time.

Can small businesses benefit from outsourcing?

Yes. Small firms gain access to skills and talent they cannot afford in-house. So they can grow faster while they keep costs low.

How does a flexible BPO help my business?

A flexible BPO lets you scale up or down with demand. Because of this, you stay agile in good times and bad.