{"id":665,"date":"2019-09-18T10:54:15","date_gmt":"2019-09-18T08:54:15","guid":{"rendered":"https:\/\/serengeti.pepwebdigital.hr\/?p=665"},"modified":"2021-09-27T09:03:08","modified_gmt":"2021-09-27T07:03:08","slug":"the-power-of-outsourcing","status":"publish","type":"post","link":"https:\/\/serengetitech.com\/de\/business\/the-power-of-outsourcing\/","title":{"rendered":"The power of outsourcing"},"content":{"rendered":"\n

Obviously we\u2019re big fans of business outsourcing for everyone -- it\u2019s a service we provide to companies looking to scale their software development function-- but sometimes people (prospective clients) are confused by the sheer need <\/em>for outsourcing.<\/p>\n\n\n\n

If you look at this article from Entrepreneur <\/em>called \u201cBuild a better business through outsourcing,\u201d<\/a> this one quote near the top explains the whole issue:<\/p>\n\n\n\n

 \"Most entrepreneurs have great talents but many times they think they can do it all,\" <\/em>Sparks says. \"That can really stall the growth of the business.\u201d<\/em><\/p>\n\n\n\n

We\u2019ve seen this, and a variation of other issues, many times. Don\u2019t want this post to be self-promotional -- you can look around the site and contact us if you choose -- so rather, we\u2019re going to discuss a few of the key aspects you should be considering about business outsourcing.<\/p>\n\n\n\n

Can you really do it all?<\/strong><\/h2>\n\n\n\n

This should be question No. 1. Even people in one specific role at a scaling company can burn out. If you\u2019re the person over everything<\/em>, you can definitely burn out. We tend to deify the world-builders in business -- guys like Elon Musk or Jeff Bezos -- but we often don\u2019t see the full team behind those guys. No one does it themselves. Everyone has a team, and usually those teams are a mix of internal and external.<\/p>\n\n\n\n

In the beginning, it makes a lot of sense for more people to be external -- because until you have a predictable revenue engine, there\u2019s no reason to pay someone full-time salary for a high-level position. For example, we\u2019ve seen companies who probably could use a CFO, but don\u2019t have the predictable revenue stream to pay someone at the level they\u2019d require for that title. So they use business outsourcing and find a retired CFO or someone who doesn\u2019t want a full-time job anymore, and that person comes in 2-3 days\/week. In the early stages of scaling a business or expanding into a new market, this is smart. <\/p>\n\n\n\n

Are you over-complicating things?<\/strong><\/h2>\n\n\n\n

We love <\/em>to over-complicate aspects of business, often creating \u201cprocess for the sake of process.\u201d<\/a> We don\u2019t work as much with marketing, but here\u2019s an example we once heard from a recruiter. A company was growing pretty fast, and they wanted a better handle on social media and a \u201csharing strategy.\u201d So they go out and full-time hire -- hire! -- one person to run Facebook, one to run Twitter, one to run LinkedIn, etc.<\/p>\n\n\n\n

Now they have three-four full-time employees who basically just post to one platform 2-3 times per day each. It\u2019s a huge waste of money and over-complication of a basic function that one person could easily do. But companies often make these mistakes in a short-term, reactionary vacuum. They see a competitor doing well on Facebook and someone says \u201cWe need a dedicated resource for that now!\u201d No, you don\u2019t. The whole reason marketing agencies exist is for this reason: business outsourcing can take the inevitable human desire to over-complicate and make it more simple. Simplification has been called the new strategy of business.<\/a><\/p>\n\n\n\n

What tasks can you outsource<\/strong> ?<\/strong><\/h2>\n\n\n\n

Business outsourcing works best when you know what <\/em>needs to be outsourced. Sometimes internal politics of the founders and initial employees get in the way, because someone wants to \u201cown\u201d a business function that\u2019s better off being outsourced.<\/p>\n\n\n\n

Most people begin by outsourcing things like data entry, and that makes sense -- those are somewhat-automatable tasks. After you\u2019ve established the first business outsourcing departments, think up the chain. Marketing. Sales. Dev. Executive functions. If it\u2019s going to help you in a new market quicker, anything should be fair game.<\/p>\n\n\n\n

How do you pick an outsourcing partner?<\/strong><\/h2>\n\n\n\n

Simply: research and referral. One advantage of business outsourcing is that your partner isn\u2019t <\/em>a full-time hire. You want to build a relationship with them, of course, but when you flop on a full-time hire, it\u2019s much more costly<\/p>\n\n\n\n

A business outsourcing partner could be gone in a year or so, or they could become a dedicated resource.<\/p>\n\n\n\n

Still, the decision is important. Research, research, research. Most outsourcing options have a website and LinkedIn presence that will tell you how great they are. So, now you need to move over to referral. Ask friends, trusted colleagues, former co-workers, etc. Get at the right people. In a world of so much noise (digital and otherwise), referral is becoming more important -- because it cuts through that noise, and it\u2019s real advice from someone who knows someone.\u00a0<\/p>\n\n\n\n

Analyze the costs<\/strong> of outsourcing<\/strong><\/h3>\n\n\n\n

You 100% need to do this, but \u2026 from experience, almost always a business outsourcing\/contractor option is going to be cheaper in the long-run, and more effective in the short-run in terms of scaling up or driving revenue forward in a new market.<\/p>\n\n\n\n

The importance of communication<\/strong><\/h3>\n\n\n\n

This is important and often overlooked. If you\u2019re going to work with a business outsourcing partner, communication is going to be crucial. Communication is often not <\/em>very good in the working world, but for outsourcing to work the most effectively, it HAS to be.<\/p>\n\n\n\n

Your new software development partners may not be in the office every day. They might not know the words, concepts, values, and benefits you like to discuss and use with customers. You need to be communicating that to them at every turn. It\u2019s the only way to get your outsourcing partner on the same page with your internal team, and that\u2019s the surest path to business outsourcing actually working.<\/p>\n\n\n\n

These are just a few considerations when looking into business outsourcing. We could write books about these concepts (but that would probably bore people).<\/p>\n\n\n\n

Anything else you\u2019d add on business outsourcing? Ever been burned by it and want to explain what to protect against?<\/p>\n\n\n\n

If you haven\u2019t - Download our Checklist:<\/strong><\/h3>\n\n\n