How to Get the Most from Outsourcing: A Visual Guide

A Visual Guide on How to Get the Most from Outsourcing

Many organisations turn to outsourcing to optimise their processes and workflows. In 2021, 80% of small businesses outsourced business tasks to drive efficiency and flexibility as remote work normalised. Based on outsourcing statistics and predictions, the industry’s value may reach $435.9 billion by 2028.

Not only does outsourcing help companies reduce costs, but it also allows them to improve their organisational productivity and streamline their processes.

However, outsourcing requires more than hiring offshore employees to handle specific business functions. It also entails having a strategic plan to get the most from outsourcing.

Check out the infographic below for tips and strategies to forge a successful outsourcing partnership.


How to Get the Most from Outsourcing: A Visual Guide

How to Get More Value from Outsourcing: Tips and Strategies

Here are some tips on how to achieve outsourcing success.

1. Choose the right outsourcing model

Outsourcing models fall under two main categories: location-based and relationship-based. 

Location-based outsourcing involves choosing a team based on where the members reside. You can opt for onshore (hiring a team located in the same country as your business), nearshore (hiring a team from a neighbouring country), or offshore outsourcing (hiring a team from a distant location).

Meanwhile, relationship-based outsourcing focuses on your preferred working relationship with your outsourcing service provider. There are three models under this category:

  • Staff augmentation – Involves expanding your onshore team by hiring additional offshore specialists
  • Managed or dedicated team – Entails hiring an offshore team to perform specific business functions and working directly with your onshore team to meet business goals 
  • Project-based model – Delegates projects to an outsourcing partner from planning to execution

Each model offers a different set of benefits. To identify which type is right for your business, assess your company’s needs and requirements. Then, match them with the strengths of each model. Take the time to examine your current processes, systems, and operations to get a better grasp of those aspects you need help in.

2. Be specific about your outsourcing objectives and expectations

As with any other business process, you must define your reasons and objectives for outsourcing before proceeding with the strategy. Outline your business goals, requirements and targets, and identify your expectations about the partnership.

Make sure to communicate your business requirements to your outsourcing partner. This will help your BPO provider choose the right candidate for you. Be realistic with your requirements to ensure alignment of the role. 

3. Provide the right tools and systems

Outsourcing entails investing in outsourcing hardware and software to enable both your onshore and offshore teams to perform tasks efficiently.

For example, if you intend to outsource customer service, invest in customer relationship management software to monitor and improve customer interactions. Similarly, project management tools help facilitate collaboration with your offshore team, increasing the likelihood of your offshoring success.

4. Provide detailed communication throughout the process

Effective communication is a must in a successful outsourcing partnership. Regularly communicating with your offshore team can help avoid miscommunication, minimise delays, and reduce errors and other failure-related issues. 

Remember that poor communication can ruin your relationship with your outsourced team. It can also diminish customer satisfaction and cause your business to incur financial losses.

Setting up efficient communication methods can help you avoid these potential problems. This can mean scheduling a regular meeting with your outsourcing partner and using communication software to facilitate a faster exchange of information and feedback between both parties.

And since communication is a two-way street, it requires attentive listening to your outsourced team’s concerns just as they listen to yours. Try to provide constructive criticism so that your offshore team is fully aware of the work aspects they must improve.

5. Actively monitor team performance

Actively monitoring your offshore team’s performance enables you to track their progress and address problems as they arise. You can use various project monitoring tools and systems to do this.

At optiBPO, we implement a performance review program called optiASSESS. In each stage, team members go through an evaluation process. The performance review process helps align staff, resources, and systems to meet the organisation’s strategic objectives.

6. Look for ongoing opportunities to utilise your offshore team

Since your offshore team is already familiar with your company practices and standards, delegating to them other related functions is more cost-efficient than hiring new employees to do the job.

Research shows that it takes three to eight months for a new hire to become familiar with a company’s operations. You can save time and resources by sticking to a reliable outsourcing company. Maximising their expertise also allows you to grow your business faster since a system is already in place.

7. Prioritise productivity

High productivity is a crucial factor in a company’s success. It translates to increased customer satisfaction and revenue. As such, your outsourced team should consistently meet deadlines and deliver quality results. You can achieve this goal by properly assigning tasks to your offshore team.

8. Account for all outsourcing costs

It is vital that you allot enough budget for your outsourcing venture. Consider upfront and hidden costs to ensure you can make timely payments to your service provider. 

Outsourcing expenses typically include the offshore team’s remuneration, social security benefits, and insurance fees.

9. Pay a competitive rate

On average, the salaries of offshore staff are 70% – 80% cheaper than that of employees in the local market. Paying your offshore staff a competitive rate can contribute significantly to their work performance, retention rate, and overall productivity.

Conduct regular salary reviews and provide additional compensation to high-performing staff or those that have taken on more duties and responsibilities.

Optimise Your Business Processes with Outsourcing

Outsourcing is a strategic way to grow your business, as you can employ this approach without straining your resources. It also lets you stay updated on the latest market trends and technologies, helping you gain a competitive advantage in the industry.

With the tips and strategies discussed above, you now have a better understanding of how to make outsourcing successful for your business. If you are ready to hire an outsourcing service provider, consider working with optiBPO, one of the trusted offshoring companies in the Philippines. We can help you plan, build, and manage a dedicated outsourced team that serves as an extension of your organisation. 

Contact us today to learn how our services can take your business to the next level!


Looking for an ideal outsourcing partner?
optiBPO can help you plan, build, and manage a dedicated outsource team in the Philippines. Contact us today to discuss your requirements.