When looking for ways to improve your productivity and profitability, consider outsourcing your IT services to a managed service provider. Many responsibilities are better suited to outsourcing than in-house fulfillment. Outsourcing IT services can help your business in numerous ways.
To fully reap the benefits of outsourcing, you have to have a strategic approach. Know why, when, what, and how you are outsourcing. A good strategy will guide you through the complicated process of implementing outsourcing at your company.
How Outsourcing Can Help Your Business
Your company can see increased efficiency and profitability in several ways when outsourcing IT services. Third-party service providers help businesses cope with growth and restructuring and lower expenses. While outsourcing may seem costly, the money it saves you in payroll and management more than makes up for it.
Additionally, your team can focus on the core components of your business. Your service provider will handle menial upkeep and management tasks so your team can develop their talent and work at their full capacity.
While outsourcing can open many doors for your business, you have to know how to do it right. Here are five tips for strategic outsourcing.
1. Know What Should Be Outsourced
The goal of outsourcing is to improve your business in both efficiency and profitability. When considering outsourcing, you have to know in what areas you can improve.
Talk to your employees. They are the most familiar with the day-to-day operations of your business, and they can offer you insight into what areas need improvement. Keep these talks team-oriented and non-threatening. Some people may become scared of losing their jobs with the mention of outsourcing.
Look at your bottom line and your biggest expenditures. Compare your costs and profits to similar companies in your industry. Figure out which areas take up most of your resources, and see if you can use outsourcing to cut those costs.
2. Know When to Outsource
Getting the timing right can be crucial for success in outsourcing. You have to look at your short-, mid-, and long-term needs to see the best time to implement an outsourcing partnership.
Do not be afraid to start outsourcing sooner rather than later. Keep in mind the potential lost productivity you may have if you choose to put off outsourcing. Too many companies waste time and money by getting through the immediate rather than planning for the future.
Consider your employees as well. Think about how the decision to outsource will affect them. Show sensitivity and respect when discussing the future of their employment at your company.
3. Handle Staff Elimination Respectfully
While no one likes cutting staff, outsourcing may require the elimination of certain positions. Look closely at your team and their responsibilities and identify any redundancies that may appear when outsourcing. If your existing employee is responsible for something that will be handled entirely by your outsourcing partner, you may need to cut ties with that employee.
While some employees might have enough additional responsibilities and training to redirect their role, it may not make sense to keep others employed. Not only is it a bad idea for your business, but it is not a good long-term prospect for the employee.
Give support to any employees that you have to let go. Have the conversation privately, and treat them with respect. If your company can, offer them a severance package and provide them with continuing education opportunities. While they may not have a purpose in your business any longer, you need to show that you appreciate the time they spent with your company.
4. Engage with Your Remaining Team
Once you have handled redundant employees, you can focus on getting the rest of your team on board your outsourcing plan. Your team may see a change in their responsibilities, and they should be aware of that.
You need their support for this shift. Employees are the backbone of a company, and without their enthusiasm, you will not see success with outsourcing.
Because outsourcing allows your team to focus on your business’ core goals, you can take time to make your people more productive and valuable. Invest in them and their talents. Send them to training, encourage further education, and incentivize them to improve their skills.
5. Evaluate Your Progress
When you and your outsourcing partner have been working together for some time, evaluate your progress. Examine your employees’ productivity before and after implementing outsourcing. See how it has impacted your bottom line.
Look at the effectiveness of your partnership with the outsourcing company. You can start to plan for the future of your partnership by continuing to work together and broadening your relationship.
Outsourcing is an excellent way to handle IT services, but successful implementation relies upon a great strategy. To truly see the benefits of outsourcing, you have to consider and plan every aspect of the process carefully.
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