An inside look at specialized outsourcing
Overview
I have recently realized that the Data Science, Cloud, and Big Data market is full of excellent professionals. As a Business Developer at BiLD Analytics, I have been having the chance to be close to the best experts and learn from them.
Therefore, here I want to share with you some interesting advice about dealing with a specialized outsourcing strategy.
What prompted me to write about this topic?
Today there is a considerable debate between outsourcing advocates and those who prefer total internalization. On which side are you?
Since I joined a service company that, among other value propositions, does outsourcing, I discovered this world full of services that is a fierce competition and where only the most specialized survive. Then, I decided to search a little more, and here is the result — the aggregation of cutting-edge ideas and strategies that lead to an understanding of the true essence of outsourcing.
So, why do companies outsource exactly? There’s genuinely not a single reason, but rather a several, and it depends on the company’s context and actual needs. Based on my current experience as a business development manager, I chose 3 keywords that seem to me to highlight the main advantages of outsourcing.
However, I will want to know your opinion. What is the best strategy to adopt? Please share with me your insights.
Purpose
Every company has a purpose. We must have in mind that companies exist not to deceive customers but to support them in their core activity. For that reason, it is mandatory to be specialized and an expert in each specific subject.
I would like to say that what is going on today is a reflex that started with industrialization when Taylor proposed the division of tasks and specialization of people inside an industry. Nowadays, to be successful, you must follow the same mindset in the dominant sector, services.
Outsourcing the business processes would free the company energies and enable it to focus on its purpose by building its brand, investing in research and development, and providing higher value-added services.
Time
As I said before, one of the most important reasons to outsource is to let you focus on your main activities and don’t “waste” time with other tasks that as to be done but aren’t your speciality.
Indeed, companies have a path to achieve their goal. This path is composed of many different needs at many distinct times. I believe that here is the key to success. Companies could act at the right time, and the outsourcers are always ready to serve their clients through their specialized knowledge and willingness.
There is greater flexibility in the relationship between companies in terms of time, content, the number of tasks, etc.
Money-saved
The expression “Time is money” never made so much sense.
Of course, we cannot talk about services without thinking about saving money. However, if a company wants to succeed, it will have to invest in infrastructure, time, people, recruitment, or technology.
Do you always think about all these costs when you are trying to resort to outsourcing?
Curious common mistake — Usually, organizations have only one goal for this strategy: to get the best technologies at the lowest cost.
If companies try to do this outside their core area, it can lead to failure. The outsourcer is already aware of the technologies and often, through exact partnerships, at the best prices.
In the IT market, this makes a lot of sense. It’s usually cheaper to contact a third-party IT service rather than build your own to deal with specific functions such as software development, maintenance, support, etc.
Steps and tips before resorting to outsource
Of course, outsourcing work is a tried-and-tested model, and it can be helpful for a short, medium, or long-term competitive strategy. However, there are some precautions to take before starting.
1- Structure and idealize all the tasks of your company or department. Then, check internally if the solutions you have are enough and the best ones to fulfil, according to your strategic objectives. This simple test will allow you to know the inherent needs for the task to make a more conscious decision.
This is often the most brilliant way to start a new project, innovation, or even an internationalization process.
2- And you ask, “But which is the ideal partner”?
To find it out, I would say that a friendly methodology is to look not just at superficial elements like the brand, their website, or the number of followers, but rather at the quality of what they do effectively, by looking at the repertoire of companies they have worked with, and the projects already carried out.
3- Always ask the outsourcer to make a use case before officially hiring them to perform continuous work. It is a right that you have, and you could perceive their value too.
4- Make sure you clarify all your needs with the outsourcer and align both outsourcing and your business strategies. Think about keeping a senior manager of your company in direct contact with the contracted team.
These are the aspects that companies should keep in mind to outsource external services successfully. Remember that start outsourcing is more than creating just a one-way relationship. It is a partnership and could lead to a network system where stakeholders from different companies are closer than before. This exchange of knowledge and experience between companies could result in future opportunities.
Final words
This strategy does not reduce the value or integrity of what you produce. It is just the opposite, you may find the tasks that you are not an expert on, outsource them, and you will create more value for you and more satisfying to everyone, starting with the final clients.
Do not forget that both parts are responsible for the contract rules, such as the project timeline, scope, and activities. It is building a tight relationship of trust from the beginning where both should try to grow side by side in terms of technical development and communication skills.
Still, in this topic, one of the most common ways of outsourcing is hiring outside of the country rather than the residing country as it calls nearshore. What do you think about this? Should I search further on this topic and share it in another article?
Thank you so much for being so attentive. Any questions or suggestions you have, please don’t hesitate to let me know.
