Outsourcing is regarded as a specialized function in many companies for carrying out different processes in an efficient and cost effective manner. Success of outsourcing may depend on factors such as support by the organization for outsourcing plan, managing service providers, communication to employees regarding outsourcing etc.
There are many third party service providers who can manage all the major aspects of a project. The kind of challenges involved in outsourcing is high even when the service is provided in a professional manner. If proper steps are taken, chances of risks in
Outsourcing can be avoided.
Some of the key lessons in outsourcing work of a startup are:
Learn the fundamentals – Business outsourcing is mainly done when you fail to understand the process behind that or else you lack time in learning about the process. It is always necessary to build a fundamental knowledge regarding the key areas of business such as HR, Taxation, Finance, Accounting, Investment etc within a limited time period. An effort should be made to understand fundamentals of business which will help you to analyze and evaluate the work done by service providers. You cannot neglect the areas of business where in you don’t have knowledge. Further, an initiative should be made to learn the basic and new concepts involved in the business, if not, you are at high risk by investing money in outsourcing.
Find in Reliable partnership – You should get in to strategic business agreement only with parties who are reliable. Knowledge level of outsourcing partners should be high and they should be able to give good advices based on specific business situations.
Constant updating of Knowledge – In any business, ignorance is a crucial factor for running out of money. People who have good knowledge will take advantage of the situation. Get your self updated to avoid such situations. Refer correct source of information if there is a doubt.
Invest more for good advice – Reliable partners can prove to be a good asset if they can provide you with correct advices. Good expertise will result in cost reduction and time saving. Build up your skills by enquiring to partners in a short and simple manner. Individuals who are good at their jobs may respond positively where in others may start complicating the situations.
Learn to outsource – Learn to outsource after understanding the business requirements. Outsourcing should be initiated by focusing on the points mentioned above. Business areas which require more skills and expertise should be outsourced to reliable partners. A clear outsourcing plan should be finalized for next consecutive year also.
There are many crucial factors which one need to understand to outsource different functions in a start up. This will be a herculean task in initial stages. You can manage in a better way once you gain in knowledge and experience in this area.