A Guide to Outsourcing: Best Practices, Tools, and Essential Tips for 2023 

A Guide to Outsourcing: Best Practices, Tools, and Essential Tips for 2023

Many businesses have found outsourcing to be an effective growth strategy. In addition to streamlining operations, it also improves productivity, reduces operating costs, and increases revenue. By 2025, it is predicted that the outsourcing market will grow by 4% on a compound annual basis. 

Let this article serve as your guide to outsourcing best practices, strategies, and tools if you are considering working with a third-party service provider. 

Outsourcing Best Practices 

The process of outsourcing can be complex, especially for those who are just starting out. Knowing the best practices of outsourcing, along with the latest developments, trends, and statistics in the industry, can help you navigate its complexities. 

Outsourcing best practices include the following. 

1. Make sure you outsource the right functions 

Outsourcing is not necessary for all business functions. Certain tasks are suitable for outsourcing. Evaluate your operations and identify those areas where your company is not proficient. Among them are marketing, logistics, and customer service. 

2. Establish milestones for the project 

Setting and defining project milestones will help you achieve your business goals. You can use these milestones as a guide to keep track of your offshore team’s tasks. 

It may be a good idea to include specific targets, for example hitting your three-month revenue target for a recently launched product. 

3. Work closely with your outsourced team 

Collaborating with your outsourcing partner can help them implement your project efficiently. Engaged employees are more productive and more likely to work diligently, enhancing your organization’s productivity and efficiency. 

4. Manage the performance of your team 

Feedback is an essential component of managing team performance. It is important to let your outsourced team know how they are doing, regardless of whether they are meeting or falling short of expectations. Focus on constructive criticism when giving comments. 

5. Your offshore team should be treated as part of your onshore team 

Managing an outsourcing project requires holding your offshore team to the same standards as your onshore team. As a result, your employees will be able to perform optimally while maintaining excellent working relationships with your company’s management. 

6. Quality should never be compromised 

The best outsourcing partners go above and beyond what is expected of them. In any case, it’s a good idea to discuss your expectations with your provider before you begin working on the project. 

A provider’s quality standards must then be determined. Make sure you research different options and conduct a comparative analysis before choosing a service provider. Ideally, you should hire a company with experience handling the project you want to outsource. 

Manage outsourcing projects effectively with these 6 collaboration tools 

In order to ensure your project’s success, you and your outsourcing provider can use a variety of outsourcing tools. Here are a few examples.  

1. Teams 

Microsoft Teams is the ultimate messaging app for your organization. In Teams, you can collaborate and communicate in real time, hold meetings, share files and apps, and even send emojis! Everything is in one place, accessible to all, and open to all. Learn, plan, and innovate together with easy access to shared content. 

2. SharePoint 

78% of Fortune 500 companies use Microsoft SharePoint to develop their online and offline capabilities. SharePoint allows you to build intranets, manage secure documents, and collaborate with others. Furthermore, SharePoint is not just for corporations; small companies can also benefit from it. 

The SharePoint platform is an enterprise tool that is designed with security in mind. It’s your all-in-one office that you can access from anywhere! 

3. Microsoft 365 

Create, connect, and get more done from anywhere with the tools you need. With Microsoft 365, you can build and manage your business, stay connected with customers, and safeguard your data. Your business can grow and market with tools that help you create, access, and edit documents, store and share files, and track projects. 

4. LiquidPlanner 

Outsourced projects can be monitored with LiquidPlanner to ensure deadlines are met. The smart schedule in this project management solution adapts automatically to changes in the project plan. By aligning people, tasks, and priorities, it ensures that the project progresses on schedule. 

5. Cloud Solutions 

Everything is moving to the cloud, including infrastructure, products, services, operating systems, applications, and software. Cloud computing provides organizations and enterprises with more efficient infrastructure management, lower costs, and stronger overall security by using and consuming computing resources over the Internet. 

6. Freedcamp 

With Freedcamp, you can streamline workflows, track time, and identify project issues. With its innovative user interface, it also aids in managing project time by allowing you to set objectives and assign tasks and subtasks to team members. 

Outsourcing Tips for Success 

The best practices and tools for outsourcing are only the beginning. If you want to ensure the success of your outsourcing project, keep these tips in mind. 

1. Identify your outsourcing goals as early as possible 

List your goals before working with an outsourcing company. Why are you outsourcing? What do you hope to achieve? 

Defining your outsourcing objectives will be easier if you answer these questions. It is also important for your outsourcing partner to understand your goals. By providing a definitive list of targets, both of you will be on the same page. 

2. Choosing the right outsourcing engagement model 

Choosing the right outsourcing model depends on your outsourcing goals, the type of services you want to outsource, and your budget. Each outsourcing model performs a specific function. 

The dedicated offshoring model allows you to build a team that reports directly to you, but operates offshore using the provider’s infrastructure, overhead, and support. You can save up to 70% on operational costs this way. 

3. Choose the right outsourcing service provider 

Selecting the right outsourcing service provider is crucial. You can find the right outsourcing partner by establishing a checklist of what you need and expect from them. 

Consider factors such as a company’s reputation, global presence, technical expertise, systems and processes, recruitment, and HR support when selecting an outsourcing partner. Your potential outsourcing partner’s work quality can be determined by these pieces of information. 

4. Consider starting with a team of one to two people 

It may be a good idea to start with a team of one or two team members if you are engaging a third-party service provider for the first time. Credible insight into the provider’s capabilities is the goal. You can gradually scale up and entrust bigger and more critical projects to your outsourcing partner if you are satisfied with the results. 

5. Communication should be clear and concise 

Lack of communication is one of the reasons outsourcing efforts fail. Therefore, it is imperative that you communicate regularly with your provider about the project’s progress, specific priorities, and other relevant topics. 

Regular communication with your outsourcing partner can be achieved by maximizing communication channels, using project management tools, and conducting periodic check-ins. 

6. Ensure the right training materials and tools are provided 

The outsourced service provider will be able to deliver results that meet your standards more quickly and easily if all the necessary tools and materials are available before starting the project. Outsourced teams may not be familiar with all aspects of your operations. It is possible to improve their efficiency and effectiveness by providing them with the proper training materials. 

Wrapping It Up 

Businesses are increasingly outsourcing global talent to remain competitive. Outsourcing allows businesses to stay competitive and maximize their potential. For small and medium-sized businesses looking to grow, outsourcing is an excellent option. By using this outsourcing guide, you could adopt the best practices, tools, and tips to ensure the success of your outsourcing projects. 

Let us help you find top talents in IT, technical support, digital marketing, and cloud services so you can leverage all the benefits of outsourcing in the new normal. Request a FREE copy of the e-book on  Third Wave Outsourcing .