Part I: A simple guide before you start outsourcing your business

What should you do before you start outsourcing your business?

Before you start outsourcing your business, review your team, pick the right vendor, and get expert advice.

• First, map each employee’s role and workload.
• Next, use BPO directories to find and vet vendors.
• Finally, consult an expert to avoid costly mistakes.

This first part covers the steps to take before you hire an outsourcing service company. So it pays to think these through first. It also helps to know how outsourcing can help your business before you commit.

Hearing about the meaning and benefits of outsourcing is not enough. First, assess yourself and your team. Preparation is key, and the steps below guide your choices. It also helps to weigh the advantages and disadvantages of outsourcing early.

These steps help you get the most from outsourcing. In addition, they help you skip the trial-and-error stage that wastes money.

Identify the roles and responsibilities of your employees

First, examine the roles of all your current staff. Then check whether anyone can still cover the tasks you plan to outsource.

This step takes care and attention. Any mix-up may cause tension within your team. So take your time here.

Multi-tasking is common in modern offices. Rarely does one person handle just a single task. This helps employers save, since they hire fewer people.

However, overloading staff has real drawbacks. This is where outsourcing comes in. It also frees people to focus on their core competencies.

At first, some staff can still cover non-core functions. As a result, you can delay a big outsourcing move. For example, a machine operator may also know basic IT. So he could act as the primary IT troubleshooter for minor computer issues.

At first, this can work well. But as your business grows, so do each person’s duties.

In that example, the operator may soon feel buried by his own work. Then extra side tasks like fixing computers make him less efficient at his main job.

Ultimately, this hurts your company. As an owner, you know that staff health and satisfaction drive success. So watch the load closely.

Reviewing each job description is always worthwhile. It helps you adjust and make fair calls for everyone. So if your team is already stretched, it may be time to outsource the less critical tasks.

You may ask, what do BPO companies do? In short, they take non-core tasks that fall within their expertise. This is how the BPO industry works, so use it to your gain.

There is a two-fold benefit from outsourcing. In fact, the wider benefits of outsourcing reach beyond just these two:

1. You keep team morale high, since staff focus on their main work.
2. You gain peace of mind, since specialists handle the smaller tasks.

First, understand your staff roles and their current load. Then you can make a better, more sensible choice for your company.

Identify your vendor: Know the services using the BPO directory

The next step is to learn more about the BPO industry. In particular, look at the services BPO firms offer. So check BPO directories online based on your niche.

BPO has grown very wide these days. As a result, it offers help in almost any field. At first, outsourcing was tied mainly to manufacturing and the supply chain.

Today, it covers many industries. For example, it spans automotive and industrial, IT, banking, capital markets, energy, technology, communications and media, travel, and more.

Even health, public service, utilities, and retail now use it. So identifying your vendor also means listing the standards you expect before you hire.

Before you write these criteria, ask one key question: why are you going to outsource? You can answer this better once you finish step 1 above.

So be clear about your purpose. Then set well-defined goals before you list your expectations. In addition, define your firm’s core values and traits.

It is not enough to know what outsourcing is. More importantly, know how it can fit your team’s culture and purpose. Each company is unique, and yours is too. So the right vendor is one that adapts to your principles. You do not want a third party to taint your brand.

After you set these standards, invite the vendors you prequalified. Send each one a formal invitation with a request for information (RFI). At this stage, a clear request for proposal also helps compare offers.

When you meet each vendor, state your purpose, goals, and objectives. This is the time to share all your expectations. So stay in control of the meeting and speak clearly.

Very often, vendors lead these meetings. They present plans and strategies, but they may forget the client’s needs. Indeed, there is a time for that. Still, let them understand your agenda first.

Of course, you can also hire several vendors for different functions. But one provider often costs less.

Finally, do more research before your final choice. First, check if their answers hold up. Then seek reviews online and study their track record.

Find some of their former and current clients. Then ask about the firm’s services and results. Are they effective? Do they bring the results you want? Are they easy to work with?

This step helps you judge the culture fit. If the final check is positive, then draft the contract with your chosen group.

In summary, here are the steps to identify your vendor:

1. Search online BPO directories for qualified providers in your niche.
2. List the standards you expect, based on your mission, vision, and values.
3. Invite each vendor to a meeting. Here, state your goals so each one understands your needs.
4. Run a final background check. If it looks great, then sign a contract.

Consult and seek advice from experts on the field

Still unsure how to prepare for outsourcing? Then it is wise to seek advice from a professional.

This guide covers the basics, but there is more to learn. So working with an expert saves time, energy, and resources. A consultant guides you at every step, from the start through implementation and beyond.

Hiring one helps you understand what you need to know. For example, they explain what BPO firms do and how to run outsourcing jobs.

Another benefit is access to unbiased, independent views. As a result, you get the know-how and custom support your business needs to outsource well.

Outsource Accelerator consultation

Outsource Accelerator (OA) is one of the fastest growing outsourcing consultation firms. It offers unbiased resources and expert appraisal of outsourcing options in the Philippines.

OA is also an outsourcing directory. So it works with many BPO companies. As a result, it covers nearly all of today’s industries and recommends providers that suit your needs.

OA focuses on startups and small to medium-sized businesses. These firms usually have 2,000 employees at most. Good consultation has helped many of them, especially in Western markets, to reduce high labor costs through outsourcing.

Frequently asked questions

What should I do first before outsourcing?

First, review your team’s roles and workload. Then decide which non-core tasks you can hand off. As a result, you keep core work in-house and outsource the rest.

How do I choose the right BPO vendor?

Start with online BPO directories in your niche. Next, set clear standards based on your values. Then meet each vendor and run a background check. So you pick a partner that fits your culture.

Should I use one vendor or several?

It depends on your needs. Several vendors can cover different functions. Still, one provider often costs less and simplifies management. So weigh cost against flexibility.

Do I need an outsourcing consultant?

Not always, but it helps. A consultant offers unbiased advice and saves time. As a result, you avoid common and costly mistakes.

Which tasks are best to outsource first?

Begin with non-core, repeatable tasks. For example, IT support, admin, and customer service work well. Then your team can focus on its main goals.