heralded<\/a> the \u201cend of outsourcing,\u201d its future has never looked brighter. Business analysts are clamoring to predict dramatic outsourcing growth as they recognize a key trend for 2021: customers have become more demanding.\u00a0<\/p>\n\n\n\nOffshore outsourcing is becoming an increasingly popular choice, especially for smaller businesses and start-ups, as they seek to market faster.\u00a0<\/p>\n\n\n\n
Some of this is down to dramatic changes to the business landscape brought about by the pandemic. For as Deloitte\u2019s 2020 global outsourcing survey notes, \u201cA remote work culture is gradually being ingrained within companies, and this will help them access global talent from the most cost-effective locations.\u201d <\/p>\n\n\n\n
Enshored\u2019s CEO Ian Jackson sees this as a welcome development but says there are still some misconceptions around outsourcing that need to be challenged.<\/p>\n\n\n\n
\u201cPeople still wait too long to outsource, and that\u2019s because they have misconceptions about what is possible,\u201d he says. \u201cA lot of that is being guided by what outsourcing looks like for big legacy businesses like the banks and insurance companies. It\u2019s not like that. We\u2019ve moved away from the traditional outsourcing pricing and business model to sign people on a long-term contract.\u00a0<\/p>\n\n\n\n
\u201cAny company that has more than one or two people\u2019s worth of stuff that can potentially be outsourced should be having the conversation. We\u2019re happy to welcome everyone into the family, even small companies.\u201d<\/p>\n\n\n\n
There are, he argues, multiple reasons to start outsourcing. Lower labor and operating costs, the ability to tap into and leverage a global knowledge base, and being able to concentrate more on your core business functions while delegating time-consuming processes are just some of them. But one of the biggest reasons is to help companies scale up and gain access to new market areas.<\/p>\n\n\n\n
\u201cWe\u2019ve recently had a business come to us because that they couldn\u2019t grow fast enough as they just couldn\u2019t find enough good people,\u201d he says. \u201cWe started work with them straight away.<\/p>\n\n\n\n
\u201cOne of the reasons why people outsource,\u201d he adds, \u201cis they want to take on a flexible partner who can help you expand rapidly as and when they need to.\u201d<\/p>\n\n\n\n
Naturally, this sounds like an attractive model for most businesses with strong growth ambitions. But Jackson cautions that there are many businesses where outsourcing won\u2019t work for good reasons.\u00a0\u00a0<\/p>\n\n\n\n
\u201cIThe person driving the relationship has to want it to succeed,\u201d he argues. \u201cSometimes, the owner of a business will see the value of outsourcing solely for financial reasons. But they will put the former head of the function in charge of the outsourcing relationship, and it just doesn\u2019t work. If they don\u2019t want it to be successful, it won\u2019t be. You need someone with a positive approach to outsourcing which is excited about learning a new skill.\u201d<\/p>\n\n\n\n
Businesses must seek to get the most out of outsourcing and not just view it as a cost-saving exercise. At its core, outsourcing is about helping companies grow, promote innovation, and access new skills to put your company in a better place.<\/p>\n\n\n\n
\u201cWe don\u2019t want to have teams that are just being yelled at down the phone because the only reason the client has a customer service function is that they have to have one. Not because they want to look after their customers,\u201d he cautions. \u201cI really believe a lot of companies are still like that. Some of them don\u2019t care about their customers, and we don\u2019t think that\u2019s a good match for us.\u201d<\/p>\n\n\n\n
For Jackson and the team at Enshored, there is one key ingredient that has to be in place to make sure outsourcing can unlock true scale-up potential; the business in question must be as passionate about outsourcing as they are.<\/p>\n\n\n\n
\u201cIt can help companies scale fast because they don\u2019t have to worry about all the mundane stuff that\u2019s holding them back,\u201d he explains. \u201cYou don\u2019t have to suddenly become an expert on the best place to rent space in London or peripheral issues like that. All those things end up being a drag on getting on with implementing your idea.\u00a0<\/p>\n\n\n\n
\u201cWe have space, and it\u2019s easier for us to manage that operational stuff to free you up to focus on growth.\u201d\u00a0<\/p>\n\n\n\n
With the outsourcing revolution showing no signs of slowing, the question many businesses should be asking is not whether it makes sense, but how do I do it right?\u00a0<\/p>\n\n\n\n