The current situation with the COVID-19 pandemic forced millions of employees to switch to remote work. Hundreds of companies around the world had to adopt new tools and strategies. Particularly, that's the reason for the rise of outsourcing - delegation of specific internal tasks or processes to an external contractor, often from business to business. Although this cooperation isn't new, it remains highly demanded and useful for many teams. 

Around 75% of businesses outsource their processes. And this number is forecasted to grow to 87% soon. Hence, we can consider outsourcing a widespread practice that benefits companies in nearly all industries and countries. We don't want to dive deeply into the reasons or challenges of this activity. Instead, let's analyze five crucial rules that can help you to build reliable relationships with business partners through outsourcing. 

Essential Elements of Success

First and foremost, let's define the main criteria for successful outsourcing. We see them as a few parameters similar to traditional internal projects. The only difference is that you expect the results from an external partner or a team, not your employees. Most often, these parameters include the next points:

  • Budget - the money you're ready to spend on the entire project or task.

  • Goals - the expected outcomes that you should get after the completion.

  • Scope - the number and complexity of tasks outsourced to vendors.

  • Security - the measures that ensure that your data is private and safe.

  • Time - the period during which the entire project or task must be completed. 

Now, keeping these things in mind, let's move to the main list. It includes five factors and ideas that can help you to outsources anything smoothly. Still, remember that each project is unique, and you should realize your own goals. Be sure not to delegate the core processes of your business. And don't rely on rules too heavily because flexibility matters. 

1. Don't Rely on Rates Only

While it may be tempting to choose the cheapest provider, don't do that. Of course, outsourcing lets you save a lot. But you still need a high-quality result. That's why experts recommend ignoring the cheapest and the most expensive offers, choosing from mid-range providers who balance between price and quality. 

2. Focus on the Required Skills

This part is essential. Apart from considerable rates, the most important thing you should look for is the relevant tech stack. For instance, if you need an iOS app, be sure to hire a person or team with Swift skills. Similarly, you should look for developers or other professionals who have rich experience in your target area, from development to logistics. 

3. Negotiate Everything in Advance

When you start working with a new contractor, it's better to agree on everything beforehand. Here are a few examples of critical points to discuss before starting the cooperation:

  • Communication channels.

  • Engagement model.

  • Ownership of deliverables. 

  • Payments.

  • Schedule.

  • Scope.

  • Support. 

4. Outsource s Small Task Initially

It's a good idea to test your partner's skills and knowledge. The thing is that portfolios can't show how a person or a vendor is working in real conditions. To check it, you want to start with a small project that includes all main stages, from initial business analysis to post-launch maintenance. Thus, you can test everything without paying a lot. 

5. Set Up Clear Communication

Last but not least, remember about proper communication. It's the heart of any project, especially in outsourcing. Start with defining main interactions, their frequency, things to discuss, and the channels you'll use. Remember to keep things professional. Ideally, communication should help both parties to work as one team. 

Here are a few more tips on outsourcing communication:

  • Avoid slang and informal expressions unless you've agreed that it's okay. 

  • Make minutes or summaries after voice calls to conclude meetings.

  • Speak slowly and clearly to ensure that everyone understands what's going on.

  • Understand your partners' culture to avoid misconceptions or rude behavior. 

Final Thoughts

At the end of the day, outsourcing isn't rocket science. This strategy is relatively mature, so there are many best practices that you can use. One core thing to remember is that only you, as a business owner or a responsible person, can decide whether your company requires outsourcing or no. It's not a magic wand that solves all problems. Instead, it's a screwdriver that can help you to improve processes, get rid of redundant work, optimize expenses. Try and succeed!