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How to drive efficiencies through outsourcing: process, people and structure
June 11, 2019

How to drive efficiencies through outsourcing: process, people and structure

Written by: Mark Engelmann

The number one reason most businesses look to outsourcing is to reduce costs. For good reason; being able to manage your resources is key to the success and longevity of any business.

Another reason is to improve business efficiencies.

Pete Schmidt, Managing Director of Insite Communications and Beepo customer agrees, “the flip side and the part that we don't talk about a lot, is how much more efficient your business is when you've got appropriate processes, structure and people that really want to do a good job and I think that's the advantage that I see.”

Let’s explore three ways to drive efficiencies through outsourcing in more detail:

1. Process

When discussing processes, it’s easy to think of different tasks that can quite easily be outsourced. In fact, the most effective way to outsource is to delegate the more “process” driven tasks to your offshore team at a more cost-effective rate. This will free up your team in Australia to focus on income generating tasks that drive growth. This was the main reason Pete’s organisation looked to outsourcing, “The major challenge that we had was the amount of administration we had was taking too much time and we weren't completing tasks fast enough. We needed more support and we didn't want to spend more money.”

A hidden benefit of outsourcing tasks is that it allows you to step back and begin to really look at ‘how’ you do things, not just ‘why’. As you begin to look at this with your offshore team there is an opportunity to further streamline your processes to ensure you are using everyone’s time more effectively.

“[Comparing] where we were six months ago involved an untidy accounting environment and where we are today [means] real time reporting and accurate information… [as a result] I can make decisions, appropriate decisions around what we do in the business, and how we spend our money... So it's far more efficient” says Pete.

When you have your team working on the right things in the right way you develop a much more efficient business.

2. People

Recruiting the right offshore team is extremely important and it all starts with working with the right outsourcing provider. You want to make sure you have a good understanding of their services and how they are able to assist you in building your virtual team. It is important that your outsourcing provider has a good understanding of what your objectives are in recruiting offshore, as they need to match your requirements with the right staff. Having the right staff is all about identifying key skill sets, employment history and other attributes that will help them fit into your organisation’s culture. As Beepo Talent Manager, Beth McConnachy puts it, “you need to have the right person, doing the right thing for the right price!”

3. Structure

Last but not least is your organisational structure. How does having a virtual team (or team member) fit into your organisation? Where does this team or staff member fit and who do they report to? How is having this team going to support your current (or new) organisational structure?

One of the key things to guarantee success in any outsourcing relationship, is to ensure that your new staff member/s are well integrated into the organisation. Consciously creating this space and place, allows for more effective role separation as well as task management. Effective team leaders and detailed job descriptions will ensure you have all your positions filled with the right people to ensure a more efficient organisation.

Looking for more tips on how to drive efficiencies in your business?

Check out CEO, Aimee Engelmann’s three-part video series on how to do just that - series here.

Boost your knowledge about offshoring, register for our education series here.