Sustainable business growth resulting from outsourcing is achievable, but not everyone will enjoy the benefits that it brings.
- Many entrepreneurs and founders have expressed their reservations about outsourcing. This is especially true for those who started their business from scratch and run it alone.
- If you have trouble trusting others with responsibility you will not feel confident outsourcing.
- If you hang on to the worry about quality control or communication barriers, you will not outsource and if you ever do, you are unlikely to have a positive experience.
What is missing from this scenario is not being able to see the big picture. This is so because you are yet to understand precisely how valuable outsourcing is.
Here is an analogy
Imagine coming home after an exhausting day at work, the thought of spending hours in the kitchen preparing dinner feels like defeat. You yearn for a delectable meal, yet the thoughts of cooking appear overwhelming. At that moment, you choose to order takeout. With a few simple taps on your phone, a world of culinary mastery becomes accessible. Swiftly, a piping-hot, tantalizing meal arrives at your door, poised to satiate your hunger.
This is the essence of outsourcing. Like enjoying a gourmet meal effortlessly, businesses too can tap into expert proficiency for specialized tasks, sparing internal resources and infusing operations with fresh perspectives. The result? A parallel to relishing a splendid meal without the intricacies of preparation. In both cases, outsourcing and ordering takeout, the focus shifts to enjoying the final product, unburdened by the complexities that led to its creation.
What then is outsourcing?
Outsourcing is a solution that allows you to delegate tasks outside your expertise, so you can focus on what truly matters – growing your business and achieving your goals.
What Makes Outsourcing Work so Valuable
Outsourcing work offers significant value to businesses looking to streamline operations and boost efficiency. One key benefit is cost savings. Hiring external experts for specific tasks helps lower overhead costs, freeing resources for core functions that directly contribute to business objectives. This financial efficiency establishes a strong basis for consistent growth and innovation.
Additionally, outsourcing offers the advantage of adjusting and growing your business operations. As the business environment changes, demands for your services can differ. Outsourcing lets you flexibly manage your resources, avoiding the need for excessive staff during slower periods. This flexible approach not only enhances your ability to handle changes but also improves how you allocate and use your resources.
Understanding the Fear of Outsourcing
Despite the potential benefits, the fear of subcontracting work has often held many back from embracing this transformative approach. The concerns about quality control, communication barriers, and even a fear of change have been the major setback. But you can’t be busy being the CEO, web designer, marketing manager, operations director and sales personnel and expect to scale your business activities.
Let’s explore how to overcome these fears and take advantage of the opportunities that outsourcing offers.
The Most Common Misconception About Outsourcing
Only large firms can outsource successfully
According to the Deloitte Global Outsourcing Survey 2020, cost reduction is the primary objective for considering outsourcing. The decision to outsource is 70% driven by cost reduction, such that if there is no positive difference in the cost, outsourcing won’t happen.
The other top reasons include flexibility (40%), processes (15%), and speed to market (20%) which are goals common to businesses of all sizes.
Outsourcing means poor communication
Miscommunication happens daily across teams, organizations and industries. It shouldn’t be solely attributed to outsourcing issues stemming from cultural and language disparities. The challenges in communication can be addressed through hundreds of effective tools that offer services like video, audio, and instant messaging, all of which are enhanced by the constantly evolving technology.
Outsourcing equals lower quality
Many businesses have embraced outsourcing but most only assign tasks like administrative work, bookkeeping and customer support. But have been more reluctant to delegate core business operations for fear of loss of control, security breaches and plain incompetence. Thankfully this is gradually changing as industry experts claim that outsourcing is a primary driver of business transformation regardless of industry.
We can find a unicorn employee
Entrepreneurs frequently aim to find a single remote team member who excels in all aspects, from web development and sales calls to social media and bookkeeping. However, the idea of a “unicorn employee” who excels at everything is unrealistic. A more effective approach is to begin by hiring your remote team for distinct roles with well-defined processes and measurable results. This strategy is the footing for a successful working relationship with your remote team.
Overcoming the Fear of Outsourcing
Education and communication play a key role in dealing with the fear of outsourcing. Here are simple things to do.
Start small: Begin by delegating smaller, less critical tasks till you get comfortable with the outsourcing process and build confidence in your contractor or remote team. As you see successful outcomes you will feel more at ease about delegating larger projects.
Conduct thorough research: Before hiring or contracting take the time to thoroughly research: Look into the profile, and portfolio, and get testimonials and reviews, of the contractors you are considering working with to understand the quality of their work. Learning their strengths, weaknesses, and areas of expertise will help you make informed decisions about who to collaborate with.
Learn from mistakes: Study both your own past outsourcing experiences and the experiences of others. Proper analysis of failures, can help with the implementation of better strategies and precautions for a successful experience in the future.
Ask for referrals: Referrals and recommendations are invaluable in finding reliable and trustworthy outsourcing partners. Ask your network on LinkedIn or colleagues. Word-of-mouth recommendations often come with a level of trust that can ease your fear of the unknown.
Conclusion
Progressive companies have the chance to improve their innovation and competitive edge by embracing the changes and possibilities outsourcing offers.
Overcoming the fear of contracting work requires a shift in mindset and a willingness to embrace change. A business that understands the benefits of and implements best practices, can successfully leverage outsourcing to achieve its goals and drive growth.
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