How to Overcome the Challenges of Business Project Outsourcing

how to overcome the challenges of business project outsourcing
Comfortable chairs with colorful red cushions on an outdoor brick patio covered by a wooden gazebo in front of a timber clad house

Business Project Outsourcing (BPO) has become a popular option for many businesses globally.  It allows companies to focus on their core competencies while delegating non-core or Support activities to an expert service provider.

Around 64% of businesses are now outsourcing, with the most popular functions being IT (51%), HR (50%), and Finance & Accounting (42%).

However, there can be some challenges associated with business project outsourcing. In this article, we will explore some of these challenges and suggest how to overcome them.

What is outsourcing?

First, what is outsourcing? Outsourcing is contracting with a third-party vendor to provide services or products typically performed by in-house staff.

The decision to outsource is usually driven by a desire to achieve one or more of the following objectives:

  • Save money. Outsourcing allows you to hire dedicated developers at a lower rate.
  • Reduce or avoid capital expenditure. When you outsource, you can prevent the need to make significant investments in new technology or equipment.
  • Free up internal resources. Outsourcing can help free up your company’s internal resources to be devoted to more strategic initiatives.
  • Improve quality. In some cases, outsourcing can help you improve the quality of the products or services.
  • Gain access to expertise. When you outsource, you can gain access to experts in a particular field who can bring new skills and knowledge to your company.

how to overcome the challenges of business project outsourcing

What are the challenges in outsourcing?

Now that we’ve answered the question, “what is outsourcing?” let’s look at some of the challenges associated with business project outsourcing.

  1. Finding the right vendor

One of the first and most important challenges you’ll face when outsourcing is finding the right vendor. The vendor you choose will have a significant impact on the success or failure of your project, so it’s essential to take the time to find a vendor that is a good fit for your company.

There are several factors you should consider when choosing a vendor, including:

– Their experience. Ensure the vendor you choose has experience in the type of project you’re outsourcing.

– Their reputation. Take the time to read online reviews and talk to other companies who have used the vendor’s services.

– Their price. Get quotes from several vendors to ensure you’re getting a competitive price.

  1. Managing expectations

Another challenge you may face when outsourcing is managing all parties’ expectations. It’s essential to set realistic expectations for the project from the outset and communicate those expectations to the vendor.

If possible, create a detailed project plan that includes milestones and deliverables. Be sure to provide the vendor with a clear description of what you’re expecting from the project. This will help ensure that you and the vendor are on the same page and that the project stays on track.

  1. Maintaining control

When you outsource a project, it’s crucial to maintain a certain degree of control over the process. After all, it’s your company’s reputation on the line.

To help ensure that you maintain control over the project, be sure to:

– Set clear expectations. As we mentioned above, it’s essential to set clear expectations for the project. This will help ensure that you and the vendor are on the same page.

– Stay involved. While you don’t want to micromanage the project, staying engaged and up-to-date on its progress is essential. Regularly scheduled check-ins with the vendor and periodically reviewed the project milestones.

– Have a backup plan. If something goes wrong, it’s essential to have a backup plan. This could involve having another vendor lined up or having the internal resources necessary to take on the project if necessary.

Where to outsource staff?

Many options are available if you’re looking for a place to outsource staff. Here are a few places you can look:

Online staffing platforms: Many online staffing platforms, such as Upwork and Fiverr, allow you to hire freelancers for your project.

Staffing agencies: Many staffing agencies specialize in providing businesses with their needed staff.

– Social media: You can also use social media to find staff for your project. LinkedIn is a great place to start your search.

Consider using an offshore development company when you’re ready to hire dedicated developers. Offshore development companies are firms that provide businesses with the staff they need to complete their project.

There are many benefits of using an offshore development company, including:

– Cost savings: Offshore development companies often offer competitive pricing.

– Access to talent: Offshore development companies have access to a global talent pool. This means you can find the right staff for your project, no matter where they’re located.

– Quality assurance: Many offshore development companies offer quality assurance services. This means you can be confident that the hired developer will complete your project to a high standard.

Philippine-based developers competence

In recent years, Philippine-based developers proved their competence in connection to software development projects. What makes them stand out?

– They are knowledgeable in various programming languages.

– They have a strong understanding of the software development process.

– They are willing to learn new things and adapt to change.

– They can work with minimal supervision.

If your business is based in Australia, it is of great advantage to outsource developers from the Philippines.

In summary

Indeed, you can overcome the challenges of business project outsourcing. In Australia alone, 82% of businesses are now outsourcing at least part of their business. Globally, 64% of businesses have at some point outsourced several of their tasks including software development projects.

To sum up, the integration of outsourcing into businesses today is an innovation that will be followed in the years to come.

Mick Pacholli

Mick created TAGG - The Alternative Gig Guide in 1979 with Helmut Katterl, the world's first real Street Magazine. He had been involved with his fathers publishing business, Toorak Times and associated publications since 1972.  Mick was also involved in Melbourne's music scene for a number of years opening venues, discovering and managing bands and providing information and support for the industry. Mick has also created a number of local festivals and is involved in not for profit and supporting local charities.        

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