Many companies function independently while some others take the help of contractors. When you give a portion of your work to contractors it means you have outsourced. Outsourcing has gained popularity in the past decade. These days above 80% of the business outsource. But the question arises when to outsource and how to do it? Outsourcing helps to minimize operational costs.
When to outsource: There are few questions which you need to consider before deciding to outsource. The questions are:
- Will the outsourcing affect your power?
- Which contractor suits your product and you the best?
- Is the contractor reliable and will he able to deliver on time?
- Is the performance of the contractor up to your requirement?
Now let us explain why these questions are important.
Will the outsourcing affect your power? If the answer is yes, do not go for outsource. In the long run, the contractor may take over your business.
Which contractor suits your product and you the best? There are many contractors available in every field. Try to work on which contractor suits your product.
Is the contractor reliable and will he able to deliver on time? If the answer to the 1st part of question is yes and the second part is also yes only then go for the outsource. If the contractor is not reliable and does not deliver on time, your shipment can be delayed. Delaying the shipment can badly affect your reputation.
Is the performance of the contractor up to your requirement? Your requirements, regarding a specific product, are important. If the contractor is not a man of words, he may cheat you when the delivery date is near.
How to outsource effectively: When you have decided to outsource, the best is to search the contractor in your social circle. A friend or the friend of a friend who is a contractor as well can form a reliable long term business relation.
- Before you finalize the contractor tell him to provide a sample. Go ahead only if the sample is up to your requirement.
- Once the contractor is finalized, you must make a legal document of the contract between you and the contractor.
- Always keep proof of details such as date of assigning and delivery, specifications, etc. Even the minute details should be in black and white.
- You must keep contact with 2 to 3 contractors. In case 1 is not available. You must have a second choice.
We hope this article helped you in understanding how and when you should outsource.