Can outsourcing build a better business?

Outsourcing is a powerful tool that can increase your company’s productivity and efficiency, while also saving you time, money and effort. LEAP answers the when, what and the how of outsourcing.

WHAT IS OUTSOURCING?

Outsourcing is a business strategy where certain non-essential functions and repetitive tasks are entrusted to an outside company. These professionals are skilled in focused areas and take over certain operations so that you can focus on growing your company.

WHEN SHOULD I OUTSOURCE?

This answer is different for every business. It could be when you have extra projects that require additional employees but you don’t want to hire full-time staff members, or if a routine job is taking valuable time and energy that could be spend developing key aspects your business.

WHAT DO I OUTSOURCE?

things today can be outsourced, but the decision should come down to whether the task is a core business function or not. If a job is fundamental to your operation and it’s one of your strengths, it should be done in-house, while other non-core tasks can be outsourced. You shouldn’t subcontract a job simply because you don’t want to do it, it must benefit your business to have an independent contractor manage the task.

WHO DO I OUTSOURCE TO?

Once you’ve decided to outsource, you now have to find the right partner. There are many capable contractors out there but don’t choose the cheapest option, rather focus on the company or individual who aligns with your business goals and needs. This also provides you with an opportunity to improve your B-BBEE rating, by conducting business with a company that is B-BBEE compliant. Be very specific about who you hire and hold them to the same standards as you would your own staff members.

HOW DO I MANAGE THE CONTRACTOR?

One of the most important aspects of this relationship is communication. Both parties must have a very clear understanding of your expectations and their goals. Make sure everyone is on the same page when it comes to schedules, deadlines and work procedures, and agree on milestones so you can evaluate their performance over the course of their contract.

WHAT NOW?

You’ve found and hired an outsourcing provider, now you have to relinquish control. Avoid the temptation to micromanage the entire process, and let them do the job you hired them for. If you struggle to let go and spend your time scrutinising their performance, you should probably reconsider your decision to outsource.

Both big and small businesses can benefit from outsourcing. When you subcontract daily tasks it frees up your valuable time to focus your resources and energy on core competencies, such as generating income and growing your business.

Need more information about outsourcing? Want to improve your B-BBEE score by choosing the right independent contractor? To see how we can help you, call LEAP today on 011 449 7974 or visit www.leapco.co.za.

We would love to hear your thoughts. Join the discussion now!

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