If you’ve ever hired a professional landscaper to mow your lawn, or opted for a grocery shopping and delivery service to get a few hours of your weekend back, then you’ve engaged in a common money- and time-saving practice used by enterprises around the globe: outsourcing.
Outsourcing can be a highly strategic alternative to an in-house solution. It offers a host of benefits including cost savings, higher levels of service, quick access to additional capacity, and the ability to reallocate staff to focus on strategic priorities. All of this can help organizations streamline workflows and gain confidence in their operations.
These benefits pay dividends for an enterprise, even when it’s business as usual. But, during challenging economic times, outsourcing becomes even more valuable. Here’s why.
Large and Scalable
Outsourcers are often large enough to provide cost efficiencies and reduce overlapping payroll costs. Many have shared services models and are purposely designed for specific work functions. They can work with specific business-critical applications that provide 24×7 enterprise support and have unique and specialized requirements to integrate with. They can also assist with customer-facing help desk and processing functions as well as managed services.
Turning to outsourcers in times of economic downturn creates a more cost-effective alternative than managing things in house because they have the ability to scale up quickly and provide flexibility when business returns to normal levels.
And it’s a high-reward, low-risk option. With the right outsourcer, enterprises don’t need to be concerned about the security of their financial information or intellectual property. Outsourcers have the appropriate protocols and security processes to support IP, financials, security and general data protection laws. In today’s largely regulated climate, all outsourcers must have the current protections in place and be able to demonstrate them through specific audits and unique customer requirements (which depend upon the industry).
9 Critical Factors to Evaluate Outsourcers
If your enterprise is preparing for potential business disruptions or slowdown due to a contracting economy, turning to an outsourcer could help you save money while working smarter and more efficiently. When looking for an outsourcer, it’s important to evaluate them by considering the following factors:
- Experience in the specific domain: Does the provider have other customers who use them for the same purposes you’d use them for? How comprehensive is their portfolio of similar customers? How experienced are they?
- Reputation: How long have they been providing services, and what is their maturity in the particular area? Can they point to specific customer success stories?
- Scalability, both up and down: As economic circumstances shift, are you able to quickly increase capacity, and do they allow flexibility in the services you outsource?
- Global reach (if needed): Can the provider operate where your staff, customers and vendors are, wherever that may be?
- Market leadership: Where does the provider stand among their competitors?
- Financial viability: What is the provider’s own financial reality? While startups have a valuable place in the technology space, going with a company that itself is financially stable can bring some peace of mind during uncertain times.
- Flexibility: Are they able to work with your business as circumstances change? Many organizations see seasonal spikes in their business, or have peak periods that require short-term needs.
- Cost versus value: What is the cost versus the benefit for the service(s) you need? As with any product or service, the most modestly priced option may not yield the most value for your specific needs. Customer satisfaction, both internally and externally, is a critical factor when considering costs.
- Ownership of the entire process: Will the provider give end-to-end support across the entire process, to ensure nothing gets forgotten about?
If your organization is looking for more information on outsourcing, Tangoe can help. Learn more: https://www.tangoe.com/resource/solution-sheet/tangoe-managed-services/.