In an effort to save on overall operational expenses, many companies are looking at outsourcing as many operational costs as possible. One area is administrative services outsourcing (ASO). There are pros and cons to any type of outsourcing, but no matter what type, there are some basic principles in deciding to outsource that you should keep in mind; here are some of them.
In today’s business world, it might make sense to outsource aspects of your company, but not everything. This is because there are some things that you just do better internally than any external source could pull off. Outsourcing, by nature, requires a degree of standardization of process that does not always fit the best with existing processes. Sometimes that uniqueness makes a difference with customers, other times it is the difference between attracting top-notch talent. The important thing about outsourcing is that it accomplishes two things: Make your job easier, collectively and make your company more profitable as a result of doing it.
Consider the Entire Costing Picture
Some outsourcing companies will promise you a “one-size-fits-all” costing model. Beware of this. No service can be entirely molded to every single business in existence. The result of forcing that often leads to higher costs than originally estimated. Go over the cost estimate with a fine tooth comb and apply it to your existing services as a company. Try to anticipate and forecast the hidden costs. Once you have that down, make an informed analysis and decision.
Choose Help Wisely
Selecting the vendor that suits your needs is as important as selecting the outsourcing alignment that you will utilize. Review vendors carefully and make sure they are fully vetted. Talk with some of their clients and ask them about the levels of service, cost, customer satisfaction and if the client would recommend them to you. Once you have narrowed your search down, look at the specific in terms of service offerings. Make sure, for example, if you are looking at administrative services outsourcing, that you choose a company that has experience in your unique business environment.
Any outsourcing company you choose should be happy to answer any questions you have. Outsourcing any aspect of your business is a major deal for you, after all. If a potential vendor seems bothered by you asking questions, treat it like a red flag.
Lawyer Up the Contract
It is tempting, especially for a smaller company, to want to review and approve contracts without seeking legal help unless it is needed. With outsourcing, it is always needed. Do not find out too late how needed it is and have a lawyer review a potential vendors standard agreement before you even move into the selection phase.
Outsourcing, especially administrative services outsourcing is a major decision for any company to make. Take care to follow these tips to make sure you get the best deal for your money and the best fit for your business.