The Outsourcing Industry – 7 FAQS

You might be a company owner looking to use outsourcers? Maybe you are planning to start a firm offers outsourced services? In the business idea development stage and looking for more info? The 7 FAQs below may help you see this industry with a fresh perspective.

Is the market stable?

The market is more than stable. In 2000, the US industry value for outsourced services was around $45bn. By the end of 2012, this grew to $99.1bn (Statista). If you are entering the market, then the opportunity is growing in size. If you are looking to use a company within the industry, then you have plenty of options.

Will outsourcing increase business capacity?

If you have picked the right outsourcing company, you can increase and decrease your capacity on demand. Better still, you can increase and decrease your business expenses on demand at the same time. Essentially, you have created a business that is flexible to market conditions.

Does outsourcing mean going offshore?

It’s true; the majority of outsourcing companies do base themselves in China, India and Indonesia (Statisticbrain). That is not to say that you have to go that way. Outsourcing in the UK, US or Australia is still a feasible and efficient option.

If you are worried about a language barrier or security issues, keeping your business on home turf might be the best route forward.

How will I need to adapt my business?

There is no doubt that outsourcing means that will you will need to adapt your overall business operation slightly. You may be outsourcing tasks that are part of your every day routine. In that respect, you become more of a project manager than a worker. You’ll need to develop a strong relationship with your service provider to ensure that they understand exactly what you need.

Is the influx in companies using outsourcers due to the recent recession?  

Although the recession might have pushed some companies towards outsourcing, most companies were already heading that way anyway. Companies shouldn’t just spend time increasing revenue, but also, cutting costs; increasing their ROI. HP was able to save over 25% on office processes – Outsourcing Delivers Savings of 25%-50% on back office costs.

How do I pick a company?

We wrote an article that explains exactly what to do and don’t do when you are picking a company – How To Outsource – 12 Dos and Don’ts.

How do I retain control of business processes?

Choosing a company does not mean you will be stuck with that one company. You need to be flexible, but an outsourcer should meet agreed deadlines with a project that is to specification.

Are you just another number to them? Do they go out of their way to help you? It is easy to feel like you have lost control of business processes if an outsourcing company is not experienced. An experienced company will aid each business process, not hinder it.

Monitor every business process and compare it to how an employee would complete this process. If the business process is not completed to a certain standard, it is time to change outsourcers, or bring that particular task in house to ensure that you retain business control.