How to Effectively Use Outsourcing for Quality Service Delivery
Before we go into the details of how to effectively use outsourcing, it is important to know what outsourcing is and what its benefits are. Outsourcing is a process where an individual or company hires a thirty party to perform duties that are non-co..
Outsourcing has emerged as one of the fastest growing industry. It is the in thing for both the government and business enterprises who now contract other entrepreneurs to do services like staff recruitment, administering payroll, offering security, cleaning, call centers among others services for them. However, lots of companies are still looking for ways on how to effectively use outsourcing.
Most enterprises have embraced outsourcing as a cost cutting measure because the contracting company pays only for the work done and over heads like staff training, insurance packages, medical care, terminal benefits and other benefits do not arise.
Equally, outsourced services are done competently and within timelines because it is only the experts with prerequisite experience and technical knowhow in that area who are contracted. Thus they must work within agreed time; failure to do it means violating the signed contract. It may attract penalties or lead to legal redress.
Furthermore, outsourcing allows a company to concentrate more on the core business while fringe services are handled by others. This reduces administrative workload as most work is taken off the shoulders of managers. This increases productivity and the overall quality.
The main issue however is how to effectively use outsourcing. Outsourcing can be used effectively if the contracting company has the capacity and technical knowhow to efficiently make use of the outsourced service, in case that service is rendered in the short-term. For instance, when outsourcing the implementation of a new technology in your business, your staff must be trained so that they can make use of the technology once the contracted company leaves.
The contacting company must always set structures to ensure that the outsourced company is operating within its core values and principles. Outsourcing sometimes alienates the contracting company from its clients when the sub-contracted company takes over. This eliminates the direct contact between the company and its customers. Sometimes this may deny a company the opportunity to build good relationships with its clients or lose them all together if they are not properly handled by the contracted company as it operates based on its own policies, which may not necessarily be the one advocated by the contracting authority. This brings us to another important aspect of how to effectively use outsourcing.
It's more appropriate to give an outsourced company a short contract initially and extend the contract when it is proved that they are up to the task. In case they underperform, let go. Float the tender until you get the company that can deliver the expected results. You should then reward them appropriately so that you can retain them for a long time.
The basis of how to effectively use outsourcing is that the contracting company must play a key role in it. It is important that a sub-contracted company delivers a quality service within the laid down regulations. Equally the hiring authority must meet his/her obligations as laid down in the contract not only to facilitate effective working of the outsourced company but also motivate them to work even harder and efficiently on a daily basis.
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ABOUT THE AUTHOR
Ryan Fyfe is the CEO of http://www.shiftplanning.com/ - An intuitive and free online employee scheduling tool for businesses of all sizes in all industries.