Outsourcing is a familiar and proven employment method, in which businesses carry out projects by using agents from outside of the company. Many start-ups use outsourcing when the company does not have the expertise in the needed subject, when they want to optimize a certain area or when there is a short-term project.
In the past couple of years, outsourcing has become a trend for many reasons. Outsourcing leads to efficiency in the company, saves costs that are involved in direct employment, enables businesses to focus on the core of their business activity and so on.
In addition, due to accessibility to the international market, employment through outsourcing provides the option to receive services from the world’s best professionals.
However, even when using outsourcing, although the company is not the one to do the project – it still needs to be involved throughout the process. It is required that the company will be able to monitor the progress of the of the project and monitor the invested budgets. Additionally, the startup company that ordered the project must know how to solve problems quickly and efficiently in real time.
Keep reading to learn the most important rules of managing outsourcing in startup companies.
What are the advantages of outsourcing?
Outsourcing is the ideal method of employment for many, due to the following advantages:
It is possible to hire outsourcing services from all over the world. Most of the startup companies’ projects can be done by teams anywhere in the world. As a result, the companies can save the costs that otherwise would be used for renting and maintenance of offices.
Furthermore, execution costs can be saved – due to the fact that companies are able to go to professionals in the global market, where the prices are more competitive than in Israel.
Through outsourcing, startup companies can save the time that would otherwise be spent completing the tasks that are not within their expertise. Instead, they can focus on the core of their business activity.
Improvement of the project’s product quality
In addition to the financial savings, turning to the global market allows employing the world’s best professionals. Thus, the quality of the product is guaranteed, alongside the lower cost.
Due diligence of the project operator
One of the worst things that could happen is to contact a project operator who does not meet the schedule, or the required standards for the execution of the project. A situation like this completely neutralizes the advantages of outsourcing and doubles the amount of work for the startup. It is recommended to conduct a comprehensive due diligence regarding the operator’s reputation in the type of projects the startup company needs.
Proper planning of the project
The project will be managed by an external factor, and there will not be continuous communication that would enable immediate troubleshooting, unlike a project that is carried out within the company. Therefore, before the startup company can outsource the project, a detailed workplan must be created for the operator.
In order to succeed when outsourcing, it is imperative to specify the tasks in great detail – tasks, sub tasks, timeframes, targets and so on. For each task, it is important to add details regarding the company’s specific requirements, specific details regarding the information resources required for the execution of the task.
If the outsourcing is carried out by a team that requires hourly payment, the company and the team must negotiate the time required to complete each task, and that information will be added to the work plan that will be given to the team.
Providing access to relevant information systems
In order to manage the outsourced project more easily, the company should provide the team that is carrying out the project with access to all of the documents and information that is relevant to the execution of the project. Such access will enable the team to work more efficiently.
Moreover, that will save a lot of time since unnecessary back and forth communications will not be needed. When the outsourcing team has access to all the needed data – they can carry out the project within the specified schedules.
To share the data, there are some well known Cloud systems that can be used. Most of these tools allow tracking the information to prevent changes or loss of important documents.
Creating a communication strategy
Communication is an essential component in any project that is carried out in a startup company, all the more so when the company uses outsourcing for the project. There are many communication challenges when interfacing between the startup company and the project managers. As a result, it is important to make a communication strategy before the actual work begins.
It is important to do the following:
Choose a communication platform and decide when to use it – private messaging, emails, management software, etc.
For example, it is important to choose one platform for communication, in case the project had stopped due to critical problems. That way, the existing communication platform will back-up all the needed information. The company can decide to have all the communication via one platform, such as emails. Such a decision can spare the broken communications and loss of information.
Define the frequency in which the project manager will give updates on the status of the project.
Naturally, during the project many questions may rise, and require response from the startup company. With a simple and clear communication strategy, unnecessary delays can be prevented and the productivity of the team carrying out the outsourced project will be increased.
Outsourcing through a reliable and professional partner
External management provide the startup companies with peace of mind that they need to develop their product in the best possible way. Adecco Israel is a business solution management company that offers a large variation of outsourcing services in 66 countries worldwide.
Due to Adecco’s many years of experience and global deployment, many unique opportunities are enabled to its clients, when hiring the services of the world’s best professionals.
Adecco’s significant advantage is reflected in its ability to guarantee correct management of a project from end to end, quickly and efficiently, while saving time and resources for its clients.
Adecco Israel has set a goal to help all its clients around the world to reach their business goals and targets, while making organizational processes more efficient, accurate execution and expanding the business activity around the world.
It is no coincidence that Israeli companies are among the most successful companies in the world! Proper thinking and planning of processes in an organization produces proper business activity in the long term.
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