Outsourcing: Who, What and Why


Outsourcing is now a well-established business practice. Indeed, most businesses work with at least one other business to provide goods and services to their customers. As such, it’s really important that new businesses understand how to use outsourcing to their advantage.

Whether you are working with an urgent care billing company or you want to import a particular product, knowing who to work with, what you should outsource and why outsourcing may or may not help is essential. The who, what and why of outsourcing is key knowledge for all businesses.

Who to Work With

Choosing the right partner is a key part of outsourcing. You must ensure that any partner you choose will work to the exacting specifications you set out and have your best interests in mind. Being able to communicate well is an essential component of any relationship so make sure that you meet any potential partner face to face to discuss your needs to make sure you get along. 

When you are choosing an outsourcing partner, you should also think about the mutual benefit of teaming up. Many businesses work together to provide high-quality products and services to their customers but make sure that you define your roles. You must still protect your data and intellectual property. This is why so many perfumeries use multiple companies to create their signature scent: each company adds value but none know exactly what they are making. 

What to Outsource

Deciding what to outsource is a big decision to make. You need to make sure that you are saving money and providing higher quality services or products with every outsourced component. Don’t simply outsource for the sake of outsourcing. 

When you choose what to outsource, think about the tools and training you already have. There’s no point in outsourcing something you could do yourself but, equally, you shouldn’t try to scale up too quickly or take on more than you are able to do comfortably. One of the worst mistakes new businesses can make is to try and grow ahead of their abilities without putting a network in place to support that growth. Planning is everything. 

Why You Should Manage Outsourcing

Like everything in business, deciding to outsource is not a single decision. You will need to re-evaluate your needs regularly and make sure that your decisions match your business plan. Managing your outsourcing also means that you don’t put too much pressure on your partners and you are aware of other potential partners in the industry too. 

One of the main reasons to outsource is to bring your own costs down while raising the standard of your product or service. This is why it is so essential that this isn’t a job you do once. The market is always moving and changing so keep your eyes open for new opportunities and ideas. Watching your competitors is one way to stay on top but the best thing you can do is see what other industries are doing. Good ideas can come from anywhere.