Every company strives to stay on top of the competition but no business can be an expert at everything. Strategic outsourcing is the perfect solution to help companies optimize business processes and see immediate benefits. In this article, we will explain strategic outsourcing and what value it can bring to your company.
According to Statista, the global outsourcing market size surpassed $92.5 billion in 2019. Meanwhile, the survey conducted by Deloitte in 2018 stated that 84% of the respondents either have already discussed outsourcing possibilities or have delegated several solutions to third-parties. Before we get to the reasons why companies are willing to hand over tasks to vendors, let’s figure out what strategic outsourcing means.
What Is Strategic Outsourcing?
Strategic outsourced services represent a set of operations that are delegated by a company for management to a third-party service provider. Most commonly, this process is associated with small companies that do not have enough resources to manage all tasks themselves. Outsourcing is also widely used among mid-sized companies and large enterprises. With the help of strategic outsourcing, companies across various industries can leverage a partner’s expertise gained through years of practice and research. As a result, a company can improve its business state in several areas.
Benefits of Outsourced Services
When handing over operations to an outsourced partner, a company can leverage the following strategic benefits of outsourcing:
- Reduced costs. One of the main reasons why companies use strategic outsourcing is the desire to cut costs. You can fully rely on a partner’s knowledge and experience rather than hiring specific personnel. Automation and optimization commonly go along with outsourcing, thus allowing businesses to save on operational costs.
- More time to focus on core business. Outsourcing helps companies get rid of an array of routine and repetitive tasks, thus giving more time to manage their major specialization and business challenges that require human interaction and judgment.
- Better risk management. When trying to solve challenges yourself without the required expertise, you are likely to make costly mistakes. Even attempts to acquire said expertise could be in vain. You might hire the wrong person, or there is not enough consistent workload to keep this person in house on a full-time job. However, when you outsource the work to experts, you can better manage risks across the entire organization.
- Improved resource utilization. Many companies employ out-of-box software and might not take maximum advantage of its use. The reason for this is that these systems are not adjusted to the specific company’s needs and goals, and they can’t be. But outsourcing software customization and integration to third party experts, helps you leverage its full potential.
- Gain competitive advantage. The above-mentioned advantages bring us to the main benefit delivered with the strategic outsourced services. Every business desires to be the best in its market and own a competitive advantage over other players. Transformation across an array of areas in your business will help you become more flexible, drive growth, manage costs and stay on top of the competition.
- Access to a global knowledge base. You can’t be an expert in everything. But you can easily access a pool of resources and knowledge when partnering with various service providers. Companies that specialize in outsourced services spend their time and money to provide you with the best specialists in the market allowing you to benefit from their expertise. Because just like you, they want to stay competitive and provide the best services at the best possible price.
Risks of Outsourced Services
Despite the advantages, outsourcing may involve some risk:
- Loss of control. Many companies are afraid of losing control over the tasks that they’ve decided to outsource. However, a good service provider will stay in touch with your team to provide you with up-to-date information and allow you to maintain a healthy level of control over the process.
- Hidden costs. Outsourcing costs vary between different activities. You might pay for integration, only then to realize that you need someone to administer the new system. To avoid unexpected spendings, make sure to calculate every possible cost with your outsourced partner.
- Low quality. This is probably one of the biggest concerns many companies have when it comes to outsourcing. While they might not have enough in-house resources and knowledge to solve existing problems they still believe that most of the outsourcing companies provide low-quality services. If you do your research and delegate your tasks to a reliable service provider that owns specific skills and enables continuous quality assurance, you are likely to get better end results.
Even though the above-mentioned risks exist, they directly depend on what service providers you choose and how streamlined your communication is with them. As long as you partner with reliable specialists that have gained a certain level of trust in the market, these risks can be avoided.
Why and When Should You Outsource?
The number of reasons that lead companies to outsourcing is endless. Some of them are willing to benefit from time and cost savings, others simply don’t have enough resources to perform certain tasks. But how do you decide when it’s time to address third-party service providers for help?
The best way to understand whether outsourcing is a good option for you is to analyze your current business state and compare the cost and time spent on different options. Calculate how much it will cost to complete the task with the help of internal vs. outsourced resources. Identify whether it’s a one-time job or it’s a long-term goal that requires continuous support.
If you decide that outsourcing is the most cost-effective solution for your business, make sure to have clear goals and deadlines in mind. The better you explain your needs to the partners, the better results you get.
What Services Can Be Outsourced to OMI?
Whether you have routine tasks that take valuable time and internal resources or face challenges that require specific knowledge and expertise, these operations can be easily outsourced to third parties. In this article, we will cover the types of services that can be outsourced to OMI experts.
Outsourced sales management can include an array of steps from strategy development to staff training. In our case, we are not talking about outsourcing sales operations to third-parties by hiring sales teams outside your company but rather providing your employees with technical expertise and content required for better customer outreach and management. OMI experts can help companies improve their sales operations management by:
- Educating staff on utilization of the adopted software;
- Choosing, deploying, and customizing software and tools to enable insightful and efficient reporting.
- Creating sales enablement content to enhance productivity across sales teams and increase lead conversion rates.
If you want to learn more about the benefits of outsourcing sales operations, check out our guide on sales operations.
Customer Relationship Management
CRM plays a key role in establishing long-term, trustful relationships with clients. Many companies apply modern technologies such as full-cycle CRM systems to enable an efficient management process across various activities related to attracting and engaging customers. However, such systems may not be properly deployed or adjusted to the exact needs of a company.
Whether you need to outsource CRM development services, want to integrate new systems such as sales enablement, marketing automation or anything related to digital transformation with the existing company’s assets, or customize pre-established software, OMI can help. Our experts create digital solutions powered by the latest technologies and trends to help clients benefit from software such as Salesforce, Nimble, Microsoft Dynamics, and more.
Properly established CRM software solutions allows companies to leverage an array of benefits:
- Enhanced communication with new and existing clients.
- Insightful reporting and analytics.
- Decreased number of routine tasks and human errors.
- Improved staff efficiency.
Marketing automation solutions help to streamline processes across your marketing and sales teams while driving more leads and boosting sales rates. From email integration and lead management to video marketing. These tools arm your teams with powerful and useful features to let them expand customer outreach across various marketing channels. For instance, the 366 Degrees platform can be used for both B2B and B2C interactions which allows small and mid-sized businesses to leverage the power of automation in customer relationship management and benefit from:
- Better lead generation
- Personalized content
- Data-driven decision making
- Improved communication between sales and marketing teams
Outsourcing gives you access to the latest technologies and professional skills that can be leveraged to benefit your business. If you would like to learn more about strategic outsourced services, contact the OMI experts today to get specific answers for your business. We are happy to lead you through the best strategic outsourcing examples and determine a solution that perfectly suits your needs.