As a business leader, you know how important it is to identify your unique value proposition and deliver quality services to be the best you can be in your industry. One of the most powerful operations strategies that can help leaders focus their resources on truly valuable tasks to drive profitability and growth is outsourcing.
Outsourcing is hiring third-party partners to conduct business functions that the company typically performs. In recent years, business leaders have outsourced roles like marketing, human resources, legal, finance, and information technology.
In 2022, Clutch found that 90% of business leaders plan to outsource at least one business function, while most industry experts are reporting that the total market value of the global outsourcing market will surge in 2023. Moreover, Deloitte reported in their annual global outsourcing survey that most businesses are evolving from vendor management to a more holistic outsourcing ecosystem.
As business leaders continue to manage inflation in the post “great resignation” era, the benefits from outsourcing will likely continue to expand. But, outsourcing can also have drawbacks, depending on many manageable factors. Therefore, effectively planning and managing the outsourcing process is crucial to gain the benefits of improved productivity, cost savings, scalability, and, ultimately, the better use of resources.
Five tips to onboard and integrate an outsourcing partner effectively:
- Choose the right roles: Evaluate carefully which business functions slow your operations down and drain most of your resources. Then, begin with outsourcing these roles to add effectiveness and productivity.
- Choose the right partners: When outsourcing, the quality of the partner you choose is crucial to a successful relationship. Be sure to select an outsourcing partner with expertise, experience, a long track record of doing business, and positive reviews.
- Define and measure goals: Set goals, estimate your starting metrics, and make sure you have systems that enable you to measure the impact outsourcing has on your business.
- Understand both parties’ responsibilities: When working with an outsourced partner, it’s important to understand everyone’s duties and roles in the relationship. Providing clarity helps ensure that the relationship goes smoothly and that the outsourcing partnership is successful.
- Manage your employees through the change: Outsourcing impacts a business’s operations and as well as its internal stakeholders. Be sure you share the plan with your employees and related stakeholders, provide them with training for new roles (if their job duties will be redefined), and ensure they understand the new processes and procedures for minimal disruption when the workflow shifts.
Whether you’re still operating entirely in-house or already have outsourcing partners, you should analyze how outsourcing could benefit your business. Then, create an outsourcing strategy and integration roadmap so that your business is well-prepared to increase productivity and add scalability to enable optimal business growth.
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*This blog post was written by Jorge Rivera, EIT, Operations Advisor at DuartePino.
DuartePino is a management outsourcing firm that combines in-depth customer knowledge with practical expertise in marketing, communications, brand management, and overall business strategies to help clients create sustainable business growth. Our single-source accountability comprises a unified network of Trusted Advisors with years of combined experience in their respective industries. As a result, we can provide your organization with a fresh perspective, proven processes that invest in results, and the martech tools for successful execution.
We have one primary purpose: to help Hispanic-led companies connect with growth opportunities. We do this by intentionally building relationships of trust, internally and externally, through reliability, competence, and integrity. As members of the Worldcom network, we also have quick and unfettered access to the resources of more than 80 global partners in 50 countries and six continents to work together in designing and implementing communications strategies for all key stakeholders. Today, we proudly manage over 15 marketing communications departments representing more than $1B in annual sales, and 70% are exporting to international markets.