Why Decide on Outsourcing?

At this day and age of computer and technology, there are no substitutes to replace internet marketing. This is a critical business strategy to help small companies compete and expand their business scope and sales activities. And businesses start with owning a website which can be used in the marketing efforts.

For some business people, internet marketing may seem easy that they do things on their own. Thinking that the operation is rather small, it may not require too rigid marketing practices or tasks that need to be implemented to achieve the desired results. Sadly, the truth is that internet marketing is not an easy and simple task and it is very much time-consuming. And with these, some have considered outsourcing their internet marketing. And why not?

• Increased site traffic by 110%. Studies have shown that outsourcing internet marketing services to a reputable company can increase the site traffic by 110%. Doing in-house SEO showed a much lower site traffic improvement. Hence, if you want to increase your business potential, leave the marketing to the experts. They are specialized and experienced and can do the job in less time. This can mean more traffic, more potential conversions, more targeted customers and more sales.

• Internet marketing is not straightforward marketing. It does not mean simply connecting to clients directly. It will necessitate finding ways to generate presence which can eat up most of your time as it requires constant monitoring to keep the site to the top. In this sense, outsourcing is more about time spent on strategizing on marketing efforts. In-house internet marketing not only will be time-consuming but it will require investing on certain tools to help with the marketing efforts.

• Having control over strategies. Outsourcing internet marketing will mean that you are free from routine tasks of internet marketing. Aside from that, you will still have control over your marketing strategies. You will be able to focus on the core business and increase the strategies by consulting with the outsourcing company. Your role will be more concentrated on strategic aspects. Online marketing is a collaborative effort and the good thing is you have a partner that is expert on that area.  

• Having the expertise at your disposal. Imagine yourself doing in-house marketing. You start by learning the trade and the trends that go with it. Apart from the fact that learning requires time, internet marketing is very dynamic, that sometimes when you have learned the trade, the market will present new changes which will render your acquired knowledge no longer applicable. An outsourcing company has the team or pool of professionals who have extensive experience on the trade. Learning new updates will be easy for them. If you have an outsource company, these experts and professionals are at your disposal (under an agreement, of course) for all the marketing needs your business may have.

• Cost effective marketing. Outsourcing internet marketing is an ideal set up for a small business because they offer a range of products, packages and services that can cater to the marketing budget of the company. You get the service you need when you need it. You only pay for the services requested and delivered.

The decision on whether or not to outsource the internet marketing services, is an option for the business that will depend on a lot of factors but ultimately, efforts should be directed to improving the work process and the marketing activities as well.  

Winning Over Outsourcing Challenges

The current global trend is on outsourcing – IT, financial services, human resource, management, product supply and deliveries, both voice and non-voice. Most of the global companies see the cost-effectiveness of such arrangements with outsourcing companies. These non-strategic activities should be able to give tangible benefits to the business in terms of product and service efficiency, improved sales activities, among others. However, despite the many obvious benefits that go along with the concept of outsourcing, there are other challenges these outsourcing companies have to deal with in order to successfully deliver their commitment to the client.

While it is true that outsourcing has seen the growth of the industry to what it is now, many companies planning to take on outsourcing some of their activities are somewhat fazed by some concerns on risks posed by outsourcing:

• Security of data

This is an important and critical issue for companies who are contemplating on outsourcing. The service level agreement should have an explicit provision or clause on liability and accountability of the outsourcers with respect to handling, storage and securing vital business data and information. While you have no direct control over this concern, there should be legal parameters covering such incidences. The outsourcer should be able to demonstrate clearly on how this angle is handled by their people, what countermeasures are in place in case of breach of data security, etc. Any outsourcing company that has no clear policy on this matter is not worth your while.

• Customer satisfaction

Customers would normally know if their calls or inquiries are handled by outsourcing companies. The almost robotic and practised and learned responses are easy give away signs. Customers will have different take on outsourcing and it is important that the outsourcers are aware of what type of customers they will be dealing with – their needs and wants, their concerns and issues, etc. A thorough understanding of the business is very vital to the successful migration of the business activity from in-house to outsourcing.  

• Technology and other Business Infrastructures

Outsourcing companies should have the required technological platforms and facilities to carry out their implementation processes – excellent communication facilities, banking systems, legal system (to take care of data security and intellectual property issues), all linked and connected together to allow for fast and smooth operations. Equally important are conducive office environments where outsourcing personnel will be motivated to perform according to the required expectations. Any global company will be comfortable entrusting the business activities to the outsourcers that give attention to these concerns.

• Communication and language gaps

This is very critical for companies entrusting their business activities to outsourcers as there should be clear understanding of the needs and wants of the company and the methodologies and implementation processes of the outsourcers. Failing this will definitely result to unresolved conflicts and undelivered commitment.

When these challenges are overcome and met with resolute approach, more businesses and companies will turn to outsourcing to improve their business performance. Having said this, it must be remembered that different businesses have different needs. If the challenges outweigh the advantages of outsourcing, then a re-thinking may be necessary as to the appropriate options to take. Ultimately, the decision is for the business owner on whether outsourcing is beneficial and good for the company or not.

Criteria for Selecting an Outsourcing Partner

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Outsourcing involves creating a productively successful partnership. And there are a multitude of choices for outsourcing partners. Each sourcing company is unique and nothing equally the same as any other in terms of service level, business principles, methodologies and  business models. Finding the perfect outsourcing partner can be a daunting task but is imperative to the success of any outsourcing partnership arrangements.

Choosing a perfect outsourcing partner for your company requires answering some questions which will determine and identify your outsourcing needs.

• What are the processes in your business that need to be outsourced? IT functions (technical support), business processes and HR (recruitment), Finance (payroll and accounting services), Sales and Marketing, Health and Safety (medical, insurance, etc.) are some of the non-strategic and non-core activities your business might need outsourcing to. By identifying the business activity you would like to outsource, you will be able to collect the information on outsourcing service providers specializing in those areas or fields of expertise.
• What is the required level of service? The outsourcing partner should have a good understanding of the product or service they are to provide for your business. They should be able to provide you with an implementation processes to be adhered to in order to achieve success.
• Will it be cost-effective to outsource? The outsourcing should provide your business with a good competitive advantage to make the whole process a wise financial and resources investment.
• Will outsourcing improve your business’ efficiency to carry out implementable new business strategies or investments? By freeing some of your personnel and making them concentrate on core business tasks, outsourcing can bring flexibility to the business’ costs and capital allowing to venture into other business challenges.  

When these are properly identified and answered, the next step would be checking out the many outsourcing companies that might be a potential successful partner for your business. Similarly, some key points to consider when scouting for an outsourcing partner for your business:

Project Experience or Track Record

It will give you an idea of how competent the outsourcing provider is if you know the kind of customers or partners they have provided services and the number of projects they have thus far completed. Check if they are recognized or heard of within their own industry. Find out if you can on customer service level of satisfaction. Blogs are usually the best sources for this information.

 

Operational Reliability and Financial Stability

Check out the company details like the number of years they are operating, number of employees, number of satellite offices, their history and experience in the business. Tangible business models should show their capability to understand your business goals with the right process, technology and personnel to implement it.

Find out about their financial standing and who are the directors and top management. This will give you an idea if they have a solid financial status.

References

A good way to check most of the critical information is by knowing who they have worked with in the past that can vouch for the quality of service, customer support services, timely deliveries, reliability and turnaround time. All these are vital in making a good call in choosing the right outsourcing partner.

 

Service Level Terms and Conditions

Different providers have different service level terms and provisions. Terms on payment, deliverables, timelines, implementation guidelines, allowable restrictions or limits, etc. should be explicitly discussed by the outsourcing partner in order to avoid conflict or misunderstanding later on. You may ask some of their references a little information on these if you can.

Infrastructure and Technology

A good outsourcing partner invests in their technology and service platforms. They should also utilize time-tested management tools and programs to continuously improve the quality of their service. A physical visit to the outsourcing partner’s business office will let you know if they give importance to these elements critical to their business operations. You need to know that they have the right equipment to handle and manage your product and service and if they are able to provide post-development support to resolve any issues that may crop up after the project’s implementation is completed.

Communication

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A high level of communication between the outsourcing partner and the business will ensure a project’s success. This will pave the way for a better understanding of the needs, goals and objectives of the business and the outsourcing partner’s translations of such issues in terms of their implementation processes. Communication is critical to any business relationship.

 

See them at work

The best way to see how the outsourcing partner works is to visit them during business hours where you can observe how they ago about specific projects.  Even for potential partners offshore, you need to visit their operations before making any final decision on your choice.

These are just some of the important criteria your business has to take into consideration in your selection of an outsourcing partner. The basic rule is to look for one whose vision is that of providing efficient productivity, competent business transformations and substantial cost savings for your business. If they work around these parameters, you are guaranteed of tangible results for your business.

When you have satisfied most of these criteria, you will have less to worry about the activities outsourced and will have to pull your time and effort in addressing the needs of the core business to improve the business activities. After all, one of the reasons you have considered to take on outsourcing is to push the resources (human and financial) to beefing up business strategies and new program or project development.

The decision to outsource your business activities is more or less tied to long-term goals and objectives. Make periodic assessments to see if the decision results to financial benefits, improved customer service, faster and accurate technical support, reduced errors in the delivery of service, improvement in the efficiency of adhering to timelines and delivery dates, etc.

Constant communication will ensure that the terms agreed upon are observed and implemented. While the outsourcing partner has the responsibility to take care of the outsourced business activity, you still have to participate actively in managing the relationship.  

Behind Every IT Outsourcing Projects

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Often times, companies are faced with challenges that may seem difficult to hurdle on the surface. One such challenge is braving up the economic crisis with much resilience to bounce off against the adversity. In many ways, companies shift to survival mode, implementing cost-cutting measures all over the place in order to keep the company from hitting the ground. Chucking out some under-utilized departments is one of the many measures they have put in place. And in most cases, the IT department suffers the brunt.

IT outsourcing companies sprout everywhere, giving a financially distressed company a viable option to reduce the overhead costs as the outsourcing company will render IT-related services whenever there is a need. This means a lot of savings on employee wages and benefits. However, despite its attractive impressions, studies and surveys have shown that some IT outsourcing companies may not be what they claim they are in terms of their ability to handle and manage the work effectively.

Sure, one would do all the background check and all, to make sure that the outsourcing company will genuinely help your business. But there are outsourcing companies which play up their track records or claim projects accountable to them, in exchange for higher or inflated service contracts or fees. If you are not careful, you might end up signing a deal with an outsourcer that is only good in paper.

Additionally, some IT outsourcing companies present other serious issues like:

• The quality of work is below acceptable standards. It may happen that an IT technician will be despatched by the outsourcer to address the problem which in fact is not clear to the technician and you will be charged for that. The lack of expertise on the problem has caused your business unnecessary expense on the recommended action which did not solve the problem.
• Response time. This is one disadvantage of outsourcing IT. The turnaround time is slow. In a critical emergency, you will be losing tons of money because of this inefficiency.
• Risk of data loss or damage. This is a critical issue. Without a trusted in-house IT specialist who can guarantee the protection of the valuable business database, it is difficult to point liability and accountability. Many IT outsourcing companies are utilized by some unscrupulous business opportunists.
• Priority. What reason could you have for you to be on the top priority list of your IT provider? There are others, like you who wonder the same thing when it comes to who gets prioritized during an emergency situation.
• Continuity. Because the IT department is outsourced, no single person has the history of the reported problem. A lot of time resources will be wasted by just redirecting engineers. No single solution will ever crop our from different engineers because each of them will have a different approach at solving the problem. Or so you hope.

Ultimately, when you do decide to outsource your IT department, in order to concentrate on another business potential, make sure you have not overlooked some of the very important and critical issues against what could be saved from the project in terms of quality, reliable and trustworthy work.