Six Ways to Get an Outsourcing Deal That Really Works

The right way to outsource is to get a deal that will work for you. For first-timers, outsourcing is a big decision to make, and decision-making indeed takes time. Obviously, it’s a matter that can’t be handled alone by the CEO or owner of a company, big or small. Here are six ways to get an outsourcing deal that works:

1. Consult – Unsure on how to approach outsourcing for the first time? Consult certain key people who can help you decide and look at the strategy from all angles. Meet with your business adviser(s) or partner(s) to know if this is the move to make. Talk to outsourcing experts to determine if your business is ready or not for outsourcing. Moreover, invite fellow business owners – especially those who have outsourced – out for coffee and get their views (and learn their experiences) on outsourcing.

2. Know what you can do and can’t do – Before you outsource, know what your current team can do and can’t do. If they consistently meet their targets and are up to the challenges posed by your new goals, why outsource? You probably know they are already providing the service your customers pay for. If you’re planning to add a new service, which is something you can’t sustain with existing resources or one that is beyond your current team’s abilities, that’s when you call the shots to outsource.

3. Outsource the right tasks – One key to successful outsourcing is to let go of time-consuming manual tasks so one can concentrate on the core activities that build the business. A similar advice is to outsource activities that you can’t support with existing resources, tasks that your staff can’t perform yet.

4. Outsource to the right provider – “Outsource the right tasks to the right outsourcing provider” would be the complete advice. Of course, why delegate tasks to someone who can’t perform them? The choice of a ‘right’ provider would depend on the tasks to outsource or task requirements. For example, if you want to outsource your bookkeeping, accounting, or payroll, look for a financial outsourcing provider, or if American English accent matters to you in customer service, a call center in the Philippines would be the right partner.

5. Don’t outsource everything yet – Outsource one or two tasks at a time for any of these reasons. To closely observe how an outsourcing partnership works. To measure your outsourced team’s performance. To know what could go wrong when working with a third party service provider. To know if the outsourced team has the potential to handle future projects. More importantly, to build trust and confidence in your outsourced team.

6. Negotiate – What are the provisions to discuss in an outsourcing deal? The preferred pricing model, type of work and amount of work to be outsourced, the duration of the project, performance metrics, risk mitigation, rewards and compensation for outsourced employees, scope of responsibilities, and yes, price – pretty much everything about outsourcing. Make sure you negotiate with the person who makes the decision for the outsourcing company or else it would just be a waste of time. Have a lawyer by your side when you negotiate and go through the contract.

You outsource because you want certain things to work at your end. To make this a reality, negotiate smart and know where you stand until you get a deal in your favor.