A Guide on Outsourcing: Why, Where and How

In this post, Anastasiya Savelyeva, presents “A Guide on Outsourcing“. Anastasiya is a marketing manager at Yaware and aims at helping people run their business more efficiently. Check this post out!

Outsourcing has been in world’s business and economy since around 1981. And since then it almost hasn’t changed. Companies still outsource their processes like manufacturing to both domestic and foreign companies. But thanks to technologies they can also outsource managing processes and small tasks to individual remote employees.

A Guide on Outsourcing

So, if you’re thinking of outsourcing some of your processes, here is a quick guide on why, where and how you should outsource.

Why should you outsource?

1) Reducing costs

Outsourcing is a great option if you’re trying to save money, or you have a limited budget. By delegating part of the work to the remote employee or company, you save money on taxes, office rent, equipment, etc.

2) Increasing the productivity of in-house staff

Did you know that by outsourcing you can increase the productivity of your in-house staff? There definitely are activities that employees delay because they don’t have the time to do them. You can delegate the part of the work that does not require special qualifications and so, free up the time of the in-house employees for new activities.

3) Meeting the deadline

Outsourcing can be a saving belt when you don’t have enough hands to meet the deadline. In this case, you can quickly find the employee with a necessary qualification and avert the crisis.

Where should you outsource?

Philippines

One of the greatest competitive advantages of Philippines is that they have a well-educated English-speaking workforce. Companies are very responsible when it comes to hiring, so the Philippines will provide you a productive, trainable and multi-skilled workforce.

Probably because of that such companies as AOL, Dell, Chevron, IBM, Intel and others have chosen the Philippines to be their outsource place.

China

During the last years, China has been developing rapidly and, as a result, has become the second most popular country in the outsourcing industry.

Needless to say that it has built a big industrial manufacturing base. Just take a look at your IPhone. Major American corporations like Apple, General Electric and Dell manufacture in China, but sell in the United States.

India

Great IT and networking infrastructure, fairly stable political situation, friendly taxes and laws make India today’s leader in the outsourcing industry.

The fact that they have a talented, educated workforce speaks foк itself. According to The National Association of Software & Service Companies, almost half of all Fortune 500 companies chose India as a place to outsource their software development.

Malaysia

Malaysia closes on heels of both India and China because of its well-developed infrastructure, attractive business environment and strong government support.

A relatively stable political situation and continuously growing economic make a great environment for sensitive, high-end apps in banking and finance.

Also, the government positions Malaysia as a hub for service and technology innovations. Thus, some of the multinationals are already locating their business in Malaysia.

How should you outsource?

In order to outsource successfully you have to follow some rules.

First of all, develop a comfortable and efficient way of the communication. Fine developed communication channels make it easier to facilitate changes in management and collaboration.

Second of all, assign committed managers to run the outsourcing. You need someone who is responsible and can make important decisions on their own.

Third of all, study the company or the employee you are going to work with. The ways they do work, their culture and traditions, the technologies they use. You both can learn and teach a lot.

Fourth of all, stay accounted with time. Time tracking software like Yaware.TimeTracker is a great fit. Keeping track of time is important because you can visualize the work of remote offices or employees, give feedback, improve management and facilitate changes.

And lastly, build and continuously develop the partnership, so you can make the most out of outsourcing for as long as possible.

In conclusion…

Now you know why you need to outsource, where you can outsource and what rules you should follow to succeed.

Question: what do you think about outsourcing some function of your company to a third-party? Have you ever outsource some operation of your business to another company? Please send us your experience, thoughts or comments about this guide on outsourcing, here!

    Anastasiya Savelyeva is a marketing manager at Yaware.TimeTracker. Her aim is to help people run their business efficiently and help employees manage their time and talent better through useful content.

    Please note: I reserve the right to delete comments that are offensive or off-topic.