How To Assess If Outsourcing Is For Your Business

Just like many other companies, you may now be ready to discover the benefits of outsourcing. Before you commit, you would like to know how to begin the process. Look at these responses to the common questions that are asked as companies begin their journey to reduce costs while positioning the right expertise in another location.

Is It Right for My Company?

The Cost Benefit 

The most often cited reason for outsourcing is the cost benefit. Since the cost of living is lower in many countries than where your company may be located, there is considerable savings for outsourcing some aspects of your enterprise without any loss of quality. In turn, the financial gain can be directed at growing your business.

Growth Spurt 

Many companies that experience a growth spurt require extra support for a limited period. With outsourcing, you are not taking on the burden of hiring additional staff. You are acquiring extra service for specific tasks to a service provider that might be time-limited.

Free Up Senior Staff to Grow the Business 

In some circumstances, senior staff may have responsibilities that can be easily shifted to outsourcing, so that their time can be focused on expanding your horizons and not the details of the day to day operations, such as accounts receivable. Deloitte’s Global Outsourcing Survey conducted in 2016 showed that about 57% of companies chose to outsource to enable them to focus on their core business, according to Customer Think.

Expensive Specialized Expertise 

There are many instances in which your company requires a specific task to be completed by a highly trained team. One example is website development or refresh. But this task can be expensive if it is handled in-house. By outsourcing the development, you can obtain the expertise without maintaining a division of your enterprise for that specific purpose.

Explore the Global Market

The network you create with different companies can possibly be leveraged into business opportunities. Indeed, your enterprise will grow through the shared responsibilities of outsourcing.

What Are Your Business Requirements?

What to Outsource

One of the most critical aspects of outsourcing is deciding what and what not to outsource. Most businesses begin with outsourcing the human resources or financial aspects of their operations such as accounting. It is not advisable to outsource elements of your core enterprise.


It is essential to select a company in a country that has a stable government and a sound economy. There are many countries in this situation, such as the Philippines, India, and Malaysia. Often, these countries have a long and successful history of outsourcing. Many started with call centers but have now expanded their expertise.


In fact, many of these countries have government support for outsourcing as they focus their efforts on training their population in skills that complement what is being outsourced. The shift in skill development is now progressing from business service industries to more technical areas such as artificial intelligence and robotics. Some of the governments in these countries also have attractive incentives for foreign businesses such as tax breaks, and fiscal and non-fiscal incentives.


There is no doubt that the international language of business is English. Many of the countries that specialize in outsourcing understand the importance of this and have focused on educating their population in the language. Countries that widely outsource services have achieved a 95% literacy rate.

The Right Expertise

Many outsourcing companies have expanded their expertise from call centers to offering services related to business applications. You can depend on expertise in the following areas:

  • Finance: bookkeeping, accounts payable, banking, accounts receivable
  • IT Services: software engineering, web development
  • Business Administration: HR administration, research, analysis, administrative assistance, transcribing.

What Are the Success Factors?

Outsourcing Company Reputation

Consider working with a well-known and respected company. Your chances of success are much higher when your partner has experience.

Start Small

Initially, select a small part of your operations to outsource, and then expand as you grow more comfortable with the process.

Key Policies

Insist on background checks on employees and excellent security measures, as well as an easy exit strategy such as 30 days’ notice without any penalties.

Make Connections

Assign someone on your staff to train the outsourced employee and make this staff member their go-to person for any inquiries.

Work Ethic

In many countries, employees take pride in their work ethic. You will find them to be dedicated, honest and eager to meet your needs.

Risk Review


Many companies who are unfamiliar with outsourcing view the operation as too risky. They may have read cases about offshore employees who have stolen customer intellectual property and tried to sell it for a profit. While it is undeniable that this has happened, countries are working towards stopping this practice as it undermines their economy. Crime does happen in any circumstance, so it is recommended that you set up protection strategies. However, it is important to consider that 78% of businesses worldwide feel positive about their relationship with their outsourcing company, according to Deloitte as referenced in Business Partner magazine.

Conduct Due Diligence

Research the company you plan to partner with and visit the location yourself to confirm the state of the outsourcing business. Investigate their financial history and, if possible, speak with the vendor’s current customers to gather testimonials. Consult with legal experts from the outsourcing country to ensure that you are complying with their laws.


Protect your company, intellectual property and private information by requiring non-disclosure and non-compete contracts. Monitor their IT security protocols for any likelihood of a breach. If there is a legal dispute, insist that it be handled in the United States. Ask that the outsourcing company have insurance that protects you for losses.

Investigate the Policies of the Outsourcing Company

Make sure that background checks for employees are conducted. Check to see if attrition is high or if their staff stay long term with the company.


Make your payments contingent on quality control and security. Understand the company procedures if you are dissatisfied with any aspect of the experience.

Although there are some inherent risks, with a careful approach you can gain many benefits from outsourcing the most relevant aspects of your business. Many of your competitors are taking advantage of this new way of doing business. It is time for you to take this step to grow your business. Contact us to learn more about our outsourcing services.