When people talk about outsourcing, they don’t usually define the type of it, simply understanding that outsourcing means assigning a part of your job to someone else – a company or an individual freelancer. However, there are differences in approaches to outsourcing, the time for execution of an outsourced job, and your relations with an outsourcing company. We’re considering in this article such a notion as a strategic outsourcing service and how it differs from tactical outsourcing.
What outsourcing means
Any kind of outsourcing is, basically, assigning some work to be made by a third-party vendor. The reasons why companies choose to outsource are countless, as well as the list of processes and tasks, which can be brought to outsourcing. Sometimes companies allow so many things in their routine work to be handled by third-party vendors that it becomes challenging to draw a line where the company starts and ends if practically all of its processes are outsourced. And, when done correctly, the company can focus on more important things:
- adopt managerial decisions
- development and improvement
- coordination of all third-party processes
- collecting profits from its day-to-day business.
What can be outsourced? HR management, sales, daily operations, taxation, IT, customer relationship management, marketing, production, client support and development, and elaboration of new products and services. Due to outsourcing, a company usually receives such general advantages as cost reduction, converting fixed costs to variables, improved performance, better time/resource ratio effectiveness, and freeing workers from routine jobs.
How strategy outsourcing differs from tactical outsourcing?
Tactical outsourcing is a one-time assignment, which you give to a third party to perform. The reason for that is that an assigned vendor can do it better, for lowers cost, or with bigger expertise than your company would with its internal resources. Also, you might simply not have such resources at all.
Tactical outsourcing is a short-lived one-time or few-time task, which does not have a recurring (process) nature and for which you simply pay to get the job done without engaging yourself in a long and thorough process of change management and picking the right vendor based on a zillion of requirements.
Strategic outsourcing is something long-going, recurring, where you assign separate processes or business tasks to be continuously performed by a third-party vendor. Here, you give out an entire business direction or wing of your company to be performed out-house: sales, marketing, client attraction, new software elaboration + implementation + support, HR, scientific research, etc. Basically, this is something that is done by a company’s in-house department or branch but you give it away now. Why? Well, it could have been done not in an optimal way in your company (which actually is one of the frequent reasons why companies outsource in the first place). The implementation of strategic outsourcing can last anywhere from months to years but the effective undertaking of this process can last for years and decades.
Due to strategic outsourcing, nearly all processes can be given to third-party vendors since in the third decade of the 21st century the world has become so global that you have a large choice and opportunities. Thus, pretty possible that your phone support would be made by a team located in Bangalore, IT development is made in Nigeria, online marketing is made in Finland, sales are made in one of the call centers across Canada, while you rent product storage facilities located from Alaska to Oregon, from Pennsylvania to Arizona, and from Florida to New Hampshire.
Defined risks and problematic issues of outsourcing
Outsourcing has a number of risks one could face:
- data security and leakage
- growth of the budget
- the difference in time zones, mentality, language, culture
- not meeting the quality standards
- loss of integrity of management horizon
- bad deliverables
- dropping quality over time
- focusing only on quantity
- picking the wrong outsourcing company
- the need to conclude a super large contract to write there all your demands and deliverables that are received from the outsourcer, which will take much time and lots of effort from both parts of the deal
- you don’t have expertise in what you outsource, hence, cannot check the quality of the received result.
How outsourcing partners can help you with outsourcing
Our company Tres Commas will help you avoid all of these problems to increase your sales. There are such benefits of working with the Tres Commas:
- You get a reliable outsourcing partner, which can cover for you strategic outsourcing and tactical outsourcing
- Cost reduction
- Global all-embracing approach to your tasks and business processes
- Professional execution of work on a contractual basis
- You can better utilize your company’s resources while assigning some of your processes to us
- We guarantee data safety, contractually agreed performance and a high level of quality
- Swift shifting on our side in the volumes of deliverables thanks to high scalability and adaptability
- Provision of advantages so you can outperform your competitors.