What is an outsourcing company?
Outsourcing is a business transfer function to an external service provider.
Outsourcing companies such as Staff India that provide an outsourcing option to companies based in there home countries (UK, USA etc).
Outsourcing companies that provide services are known to be the middle men in the transaction. Companies that require outsourcing would find such an organisation that specialises in outsourcing. This organisation then provides offshore employees for a more affordable cost for the companies interested for a set price a month. This part is dependent on the companies requirements of the calibre of the employee. The price quoted by the outsourcing company usually includes: an Employee, office space, office equipment, technical support, management services…etc
Who uses outsourcing companies?
Many companies use outsourcing no matter the size of the firm. Outsourcing is a way of reducing internal costs for companies that require office space for other use or need to reduce there office space. Any jobs within a company that doesn’t require meeting the clients face to face can be outsourced. Examples of outsourcable jobs are Web Design, Data Entry, Call Centers, Administrators, Virtual Assistant and many more. Many companies nationwide are joining the scheme with the ease of communication and now Employees available with professional qualifications so the bigger companies with specific needs are introducing outsourcing in there respective firms. Nearly 75% of US and European multinational companies use outsourcing to support their financial functions. 72% of European multinational companies outsourced financial functions in the past two years.
From a survey carried out by PricewaterhouseCoopers the main source of outsourcing is in the IT industry with 43% of companies outsourcing followed by 17% of financial services outsourced in 2005
How to decide if outsourcing is for you?
You don’t have to be a large company or have a large workload to take advantage of outsourcing. If you have services that require only office use and no face to face business for parts of your company then outsourcing can be for you. Small companies are the biggest to benefit from outsourcing. This enables the company to reduce in house costs whilst providing an efficient service. With virtual assistants worldwide there are two options for the company to consider. With a virtual employee costing half as much as an employee in the office what can they do with the money they save? Firstly they can both expand the business and generate more customers along with having more spare time. Or these companies can have longer opening hours enabling reaching out to more consumers as the virtual assistance can work whichever hours required.
As for larger companies, the average wage paid to a professional is £2080 per month. This can drastically be reduced to save on costs and improve profits as monthly costs for an employee in the Asian sub-continent can be employed for as little as £299 per month. This is made possible due to the economic change in countries; in India £299 per month is a competitive salary allowing the employees to live a luxurious life.
How to find outsourcing companies?
There are many ways to find outsourcing companies, to find a reliable one it would be handy to search on relevant forums. Find out what other people have used and how they found that company. Many people will tell you of the troubles they use to have with outsourcing companies previously but with in all of that you can find positives that suit your companies’ needs rather then theirs. Here are a few ways of searching for effective outsourcing companies
- Search engines – search for what you are outsourcing, not a general company. There will be many companies that provide general outsourcing but find a specialist. These will cater your needs better.
- Forums – Look on specialist forums for what you need. For example don’t look on a general business forum for IT outsourcing. Start threads on multiple forums to get the opinions of users. You may even get outsourcing companies advertise on your thread for you to look at.
- Social Networking – Places like Facebook and LinkedIn provide a lot of business. Outsourcing companies will be advertising to reach out a greater audience via social networks. Search for groups and links related to your needs of outsourcing.
- Recommendations – Sooner or later you will come across people that have outsourced, it may be a freelance worker or different outsourcing companies. If you no people in business’ ask them if they have used outsourcing, and what their companies outsourcing. It may even give you an idea on other projects that you can outsource.
- Free Trials – Outsourcing companies provide free trials as there is a lot of competition now in the outsourcing market. Look for the ones with free trials, test them before you agree to it.
Lastly, look for companies that are effective and on time, not the cheapest. You are after individuals to be dedicated to your workload and allow you free time. Don’t find employees that need to be looked after all the time. Remember you have your own things to get on with, hence why you have an employee doing that job for you.
What to look for in outsourcing companies.
When hiring outsourcing companies, you are essentially choosing a partner for your business. A few things to look for in outsourcing companies are the following:
· Stay one step ahead! Don’t wait until you need help. Have someone covering the workload before you start struggling to keep up. Find out what’s available in and what outsourcing companies cater for your needs.
· Be clear about what you want outsourcing to accomplish. Communicate projects, expectations, fees and timelines to your vendor.
· Use a company to help you find the talent you need. Don’t stick to one outsourcing company, find and try many companies to find the best one for you.
· Look for flexible organizations capable of providing many talents, you may need or want outsourcing in more then one department or tasks. Find companies that can suit all your needs rather then having many outsourcing companies partnered with yourself.
· Identify outsourcing companies who have worked with your type of business before.
· Technology matters. In addition to email, high speed web access, etc., is the technology of the outsource company secure with built-in redundancy in case a file gets lost?
Remember, find someone to suit your needs, not someone who can just do the job.
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