Paragon Tips for Outsourcing Success

Entrepreneurs and small business people are always looking for creative ways to accomplish more of their business goals for less money. One strategy that can help you save time, money and frustration as you start and build your business is to outsource as much work as possible to skilled, but cost-effective, external service providers. 

Clearly Define the Scope and Schedule of Your Project 

This might seem obvious, but any successful outsourced project always starts with a clear statement of what you are hoping to accomplish. Define your project requirements upfront. Paragon needs accurate, complete information to present you with realistic proposals and to quote you a reasonable price. Be specific about the deliverables you expect Paragon to provide. Give as much information as you can about what you need to be delivered and the way in which you need the work done. Also, be clear and realistic about your schedule requirements – project schedules can have a huge impact on project costs. 

Build Detailed Launch Plan for Success 

Service providers and business process outsourcing firms vary widely in capabilities, experience, and expertise, thus, it is critical to obtain a detailed proposal that includes costs, scope of work, timeline, ramp-up plan, program personnel, and their experience. Sourcing a given firm based on reputation or recommendation alone leaves many variables unaddressed, so gathering and identifying the specifics of what the firm is proposing significantly reduces sourcing risk. 

Outsourcing partners bring new core competencies, ability, and agility to an organization, but “new” often equates to risk. As a result, launch plans should account for the time needed for new team members, processes, and technologies to harmonize. 

Outsourcing transitions are one of the riskiest business actions companies can take, so creating a detailed Gannt Chart and facilitating weekly project check-ins with team members from both the buyer and supplier, until completion, will maximize success. 

Track Performance to Continuously Improve 

After a company signs a contract with an outsourcing partner, it still has more work to do. The specific key performance indicators (KPIs) defined in the agreement – cost, timelines, etc. – need to be monitored so the supplier’s performance can be continuously improved. Qualitative, intangible KPIs should be tracked as well to improve working relationships, communications, and rapport with the supply partner. The more the two firms can resemble “one seamless team”, the better results will be. 

The long-term benefit of selecting a first-rate outsourcing partner is that it will get better over time, as will the performance of an organization’s extended enterprise. 

Lay down the rules and set outsourcing goals 

The decision to outsource is likely taken by your whole managerial team. With a few cooks in the kitchen, each person may have different ideas about the motivations for outsourcing and how to do it. 

Get everyone on the same page by considering your overall goal. 

• Do you want to cut costs? 

• Will outsourcing help with scaling faster? 

• Is it about remaining competitive in a global market? 

• Or even improving efficiency and service quality for consumers? 

With your end goal clearly defined, you’re more likely to save valuable time and energy. 

Tackling offshore team management 

Knowledge and skill in managing outsourced processes are vital in making the shift to outsourcing. Are you and your company executives ready for the responsibility? A few things to consider: 

• How you’ll recruit and hire the right people for your offshore team. 

• Educating offshore employees about your business and culture. 

• Setting clear responsibilities and KPIs. 

• Communication between onshore and offshore teams for greater unity. 

The benefits of offshoring can deliver great results for your business. But achieving these requires careful management and time investment. 

Details are everything 

By following these strategy steps, you should be able to clearly articulate when, how and why your business needs to outsource or offshore functions. You might feel overwhelmed by all the information you’ve gathered and tasks outlined, but if you break it down and are able to see the mid-long term benefits of outsourcing, it will be manageable and successful. 

Ready to build a dedicated offshore team? 

Paragon has become one of the best-managed operations providers in the Philippines, we can help you build a dedicated team in the Philippines – covering all roles and levels of specialization you require. Have your offshore team up and running in as little as two weeks. s. Contact Us Today!

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