Why Outsourcing Is Trending for Small Businesses
As taught in LEAN Process Improvement, companies should focus on automating tasks as much as possible. For tasks that cannot be automated and are not core competencies of the business, they should be outsourced.
LEAN = Elimination of waste
Look at the value-chain as it relates to your customers. Often times, you’ll come across back office processes that create no actual value to your customers.
Consider how you set your pricing:
Chances are your customers don’t care how you operate internally - they just want their product or service delivered as advertised and on time.
LEAN teaches to eliminate non-value added processes either through automation or outsourcing. If a repetitive, non-value added task cannot be automated or it is too expensive to automate, then outsourcing is the solution.
What Should I Outsource?
It’s quite common for companies to outsource business consulting, legal staff, accounting professionals, IT, HR and recruiters. Think about it - housing a professional business consultant within your company would be costly and should only be used on an as needed basis.
Whether these companies are located onshore or offshore depends on the services required. For professional services, most people would choose to stay onshore for the skilled white-collar positions, but for repetitive tasks that are process-oriented, these could be done by an offshore professional without concern.
Who Offers Outsourcing Services?
Some of the companies leading the charge in offering outsourced solutions are big name firms in the US: Accenture, Deloitte, E&Y, etc. Many of the professional service companies you deal with in the US are actually outsourcing their back-office processes as well. These companies have adapted to the new business model which embraces globalization.
At Aztec, we utilize LEAN process improvement in all of our work. Initially, we’ll design the processes together, if they do not already exist. Then, we’ll measure the results week over week. Each week, we’ll look for trends and areas of improvement. Eventually, we’ll refine the process and identify areas of improvement. Next, the team will implement the solutions and measure the results of the team or virtual assistants. If the solution is efficient, we’ll add it to the standard process to ensure it is sustainable.
The above technique is used in LEAN and it’s called DMAIC: Define, Measure, Analyze, Improve, Control.
The important part here is identifying the right metrics to analyze.