You don’t have to dig too deep into the outsourcing conversation to uncover common myths about the practice. Some think that relying on outside specialists to perform business functions is just too expensive to be viable for small and mid-size businesses. Still, others fear that giving up control of certain projects can’t hurt the focus or culture of the company. While it’s important business leaders keep a healthy skepticism about it, it’s clear that outsourcing can be a winning strategy. To better understand if it makes sense for your business, let’s take a look at some of the biggest misconceptions out there.
- Cutting costs is a driving factor – While it is true that most businesses are looking to reduce costs by hiring out, it’s not always the primary factor driving the decision. In many cases, businesses opt for outside partners to free up internal teams to focus on core business activities like sales or to gain access to skills they don’t have with full-time employees. An example might include software development work or finding someone with the technical skills necessary to set up the company’s Wide Area Network (WAN). Or it could mean finding a customer service team to help manage the onboarding process or field support calls from customers in a new region. The shift away from efficiency and cost-cutting as primary objectives of the outsource model has paved the way for new pricing models too. Companies are expecting more value from partners, so often contracts are aligned with goals for specific business outcomes and growth, rather than conventional fixed-pricing agreements.
- There’s a risk for giving up control of the business – It’s common for business leaders to fear that bringing on consultants can cause a project to lose its focus or spiral out of control. Many fear that by asking for help they risk losing the strategic or tactical direction of a project. While it is a possibility, it’s usually not the case. Instead, it’s often a question of whether the management team had a good grasp of the project from the start. One of the best ways to maintain control is to have clear objectives in place and to have regular communication with the partner. Setting scheduled milestones to review the status of the work is also a smart way to sure there are no surprises. Choosing a strategic partner and maintaining active involvement with continuous governance and collaboration can help companies meet their mini and big-picture goals and avoid the panic of ‘losing control’ of critical activities.
- It’s best if I outsource projects – Hiring talent to help with one-off, specialized projects like developing a website or app are only one side of the equation. In reality, a lot of the benefits of working with a third-party occur with on-going efforts, such as marketing, accounting, legal services, or IT service management. That’s because long-term engagements allow consultants to get to know the company culture, customized workflows, and other nuances and business processes. These extended team members can fine-tune their skills and continue delivering solutions that are in line with a company’s goals, needs, and strategies. Building a sustainable relationship with an outsourcer also creates a win-win environment where both groups gain more value from the relationship over time.
Put your plan into action
There are several reasons why organizations of all sizes are turning to outsourcing – speeding time to market, gaining access to much-needed skills, and, of course, cutting costs. But more than that, it’s also clear that businesses are looking for partners to help guide and achieve other business-critical priorities too, such as driving innovation, customer-centric imperatives, enhancing workflows, or achieving digital transformation goals. Meeting business milestones for 2020 when working with a partner depends on having a clear understanding of what’s possible and what’s not. If you want help looking at your options, talk to Outsourcive. We can offer clear, unbiased insight that can help