What is outsourcing?
Outsourcing—also known as managed services—is the practice of delegating responsibility for a specific business-related activity to a third-party company.
The industry is centered on people and the value of diversification. Today’s service providers strive to provide well-educated, highly motivated people at competitive prices from all over the world.
Modern managed services are available for every business process imaginable, from recruitment, operations, and accounting to technology development, sales, customer experience, strategy, and everything in between.
What are the benefits of outsourcing?
Outsourcing is about adding value to your business by leveraging the skills, experience, and knowledge of established partners.
Third-party managed services result in revenue growth, cost efficiencies, improved strategy and execution, and the ability to scale your operations, technology, and workforce.
By freeing up the company’s time to focus on core competencies, businesses can improve, innovate, and grow much faster, allowing them to compete with agility and purpose in a rapidly evolving market.
Who uses outsourcing?
Every single Fortune 500 company outsources business processes and technology development to maintain their competitive advantages.
All businesses compete with these 500 leaders, either directly or indirectly, so without a solid outsourcing strategy, every company runs the risk of operating at a significant disadvantage.
Whether you’re outsourcing customer experience, software development, back-office operations, recruitment, or accounting, the value of working with a trusted, well-established partner is immeasurable.
How do outsourced teams fit into our existing operations?
When outsourced partners provide talent, these skilled people become part of your brand and integrate with your existing teams—they’re as important to the operation as any regular hire.
To maximize your outsourcing investment, the best practice is to treat your outsourced teams like they’re an extension of your business.
Any tips for managing our outsourced teams?
A single point of contact between your business and the outsourcer is critical to get the most out of the partnership. Most companies assign an internal manager or establish a vendor management unit to handle the day-to-day relationship.
When combining internal teams with outsourced teams, make sure to establish clear roles and responsibilities that encourage collaboration and communication. Also, take the time to visit your outsourced teams to strengthen the relationship while further infusing your brand and culture.