Article: Why never to outsource your USP, plus 5 expert tips to maximise value from outsourcing

ONE OF THE BIGGEST LESSONS WE’VE ALL HAD TO LEARN IN RECENT YEARS IS HOW TO DO REMOTELY WHAT WE THOUGHT HAD TO BE DONE ONSITE. A GLOBAL PANDEMIC CHANGED THE WAY WE WORK – AND OUTSOURCE. IT HAD ORGANISATIONS EVERYWHERE ASKING THE AGE-OLD QUESTION “CAN OUTSOURCING REALLY SAVE MONEY?”

The answer is yes. Although developing in-house capabilities can too. Outsourcing is a huge area so it’s important to choose the right route. Here are 5 things to bear in mind.

 

   1. KNOW THE PROBLEM

 

When something’s not going well, it’s tempting to just outsource it. But before you do, make sure you understand the problem and you can explain it. If not, you can’t be sure that the solution you choose will solve what you’re up against. 

Keep communications open with whoever you’re outsourcing to and put incentives in place that both of you will benefit from.

Download our FREE Cost Optimisation Framework

   2. DON’T OUTSOURCE YOUR USP

If something gives you a unique edge over your competitors, don’t outsource it. Remember, your competitors can outsource too…

Outsourcing the thing that made customers choose you instead of a competitor is risky. Instead, know what’s special and hang onto it.

 

   3. MICROMANAGEMENT OR TOAL FREEDOM?

Should you give your outsourcer total freedom to take control – or keep them on a tight leash? The best way is to find the right balance. 

First of all, know how and what you’re going to measure success by. Then get frequent meetings at a variety of levels in the diary. Both sides will reap huge benefits from good relationships between people at the coalface as well as at senior level.

 

   4. KNOW THE REAL COST

When you’re assessing bids for your project, keep the bigger picture in mind. The cheapest bid is likely to have a more rigid cost base and that means any future changes are likely to come at a new cost. 

Set up flexible contracts from the start to allow for innovation. That way, both companies benefit. The cheapest bid at the outset doesn’t necessarily make for the cheapest project delivered overall. 

 

   5. OWN IT

 

Your customers won’t care that you outsourced it. If you did it well, they won’t know the difference and that’s a huge mark of success. 

But it also means that if things go wrong, your customer will still perceive it’s you that owns the process. You won’t get to blame the outsource provider and wash your hands of it all.

Ultimately, it’s your business, no matter who’s involved in the outsourcing, so be ready to own the process.

READY TO TAKE YOUR OUTSOURCING TO THE NEXT LEVEL?  TALK TO OUR TEAM.