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Outsourcing - some Questions and Answers

 

Q. What is outsourcing?

A. Outsourcing is employing experts from outside your business to perform specific tasks.

Q. Why is it important to outsource?

A. Outsourcing is a way that all businesses can remain competitive - rather than keeping a team of experts on the payroll, outsourcing work enables you to utilise the skills and experience of these people without having to pay full-time salaries, health and sickness benefits etc.

Q. What are the advantages of outsourcing?

A. It enables the development of successful, long-term partnerships between the outsourcing provider and outsourcing end-user. The outsource expert can take responsibility for some of the non-core functions of the  business, freeing the end-user to concentrate on other areas of expertise, such as Research and Development, and marketing, which are of more direct benefit to the business and the bottom line.

Q. How does outsourcing save time?

A. Tapping into capabilities not available internally increases scheduling flexibility and resource availability, which usually results in reduced time to market.

Q. What should you look for when selecting an outsource provider?

A. The outsourcing provider should demonstrate proven competence in his/her field. As well as possessing the necessary skills and experience, a commitment to quality, delivery, integrity and innovation are vital. Flexibility, efficiency, and cost-effective services are also important criteria. Overall, the provider should demonstrate an ability to listen to what you want to achieve and have the skills to achieve this. 

 

Q. Which is better - a one-off relationship or an ongoing partnership?

A. The key to the success of outsourcing is a well-managed relationship between the outsourcing provider and end-user. Commitment to a true partnership and the development of a shared vision will ultimately create the greatest sustainable value for both businesses. The more you work with a provider, the more that person understands your needs and the better the service he/she can provide. Joining forces with a focused service provider allows the end-user to boost revenue growth and market share while implementing improvements in customer service. Combined, these benefits translate into increased competitive power.

Q. What does the future hold for outsourcing?

A. The globalisation of the economy, rapidly improving technology, and a heightened focus on providing customer value have significantly increased competition in nearly all markets. This, in turn, has been the impetus for a fundamental change in how businesses view their sourcing strategies and has forced them to look for ways to become more competitive.

Outsourcing provides this opportunity - by allowing businesses to:

  • Better utilise internal resources
  • Increase responsiveness to customer needs
  • Decrease financial risks by reducing capital investments
  • Shorten product cycle times

Q. Are there any risks when outsourcing?

A. There are always limited risks in any business enterprise - some to be aware of are that by outsourcing the same tasks you may suffer a loss of skills and expertise in those areas. Confidentiality could be a problem when outsourcing sensitive tasks and costs could escalate if projects were not carefully monitored. 

You can also utilise management software and programs to minimise risks.

Q. How can these risks be minimised?

A. You can minimise all inherent risks by carefully choosing your provider. Make sure you clarify all your goals and expectations from the outset, and insist on obtaining a confidentiality agreement if you're at all concerned about security.

By developing a strong partnership with your supplier you overcome all known risks.

Q. Where can I find competent staff?

A. Find the talent you need today and save 25%. Post your job on Yahoo! HotJobs.

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