What is an outsourcing strategy?

An outsourcing strategy is when you decide to delegate an activity of your business to an external party outsourcing company or a period of three months to an indefinite contract lasting several years. The outsourcing strategy encompasses an entire field of work and therefore includes all the material and human resources necessary to ensure the complete operation of a business activity.

These business processes can include marketing, customer service, accounting, human resources management, or IT. In this strategy, the outsourcing company takes control of the activity, but the owner can still oversee the project since they are the client ordering party.

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What are the types of outsourcing strategies?

There are two types of outsourcing strategies: the first is the BPO and the second is the subcontracting. BPO (Business Process Outsourcing) involves outsourcing a business process, while subcontracting consists of delegating tasks that one cannot perform oneself. Generally, BPO is for a minimum duration of three months, and the service providers are a agency or outsourcing company. legally recognized in its activity. 

In contrast, subcontracting can be occasional and specific, and is generally done with a freelancer or an individually-owned business. In short, BPO is an outsourcing strategy that involves an entire activity, such as customer service outsourcing, while subcontracting can occur when you are overloaded with client demands and need additional labor for a limited period.

What is the advantage of outsourcing strategy?

The advantages of an outsourcing strategy include time savings, the ability to focus on high-value activities, cost reduction across the board, and access to experts in their respective fields. An outsourcing company typically offers services ranging from 10 to 50 euros per hour, depending on the specific activity. For a... quality customer service, this corresponds to 10 euros per hour. 

On the other hand, if you account for the total salaries of customer service agents, electricity costs, rent, social charges, and subscriptions, the price rises to 25 euros per hour. This creates a difference of 15 euros per hour between establishing an internal service and outsourcing it. This cost varies from one activity to another, but the main advantage, which is the reduction of expenses, remains consistent.

What activities can be outsourced in this strategy?

When it comes to outsourcing strategy, the most affected activities are administrative tasks, accounting, human resources management, customer service, digital marketing, and IT. Let’s take a closer look at each of these activities and why it makes sense to outsource them.

Outsourcing administrative tasks

Have you ever heard of virtual administrative assistants? Primarily, they engage in outsourcing. So, there is a person who is very busy and delegates tasks such as managing emails, scheduling agendas, preparing documents, reports, and so on.

These are time-consuming tasks., so the outsourcing strategy is the best solution to address this. That said, few companies actually outsource this activity; it is primarily freelancers who are the targets of this strategy.

Outsourcing accounting.

Accounting has always been one of the longest and most tedious tasks, with a relatively high cost associated with salaries. For this reason, it is essential to outsource this task to a company that specializes in the field. There are several firms available, and they can ensure that no errors will occur in your business.

Outsourcing human resource management

Imagine spending hours posting a recruitment ad on LinkedIn or dozens of job boards. Then, you'll spend hours sorting through candidates. If you don't find the right person, you'll have to actively seek out candidates. 

It's time-consuming, isn't it? You might as well delegate all these tasks to a person or a recruitment agency. In other words, it makes sense to outsource human resource management if you want time to focus on your core business.

Outsourcing customer service.

Customer service is one of the activities that should be outsourced due to the demands of this function. On one hand, customer service requires expertise. On the other hand, it requires time and attention. These are demands that you cannot meet if you wish to focus on your core business. 

However, customer service is the cornerstone of a business, so if you want some advice, externalisez votre service client et confiez-le à une entreprise experte dans le domaine comme call solution .

Outsourcing digital marketing.

De la création de contenu web jusqu’à la gestion des comptes sur les réseaux sociaux, le marketing digital connaît un essor important ces dernières années. Ce qui signifie, en même temps, qu’il va consommer tout votre temps libre. Le meilleur choix à faire est de le confier à une agence d’externalisation, il y en a des tonnes. À vous de faire le bon tri, car malheureusement, notre activité est l’externalisation du service client, mais pas du marketing digital.

How to implement an outsourcing strategy?

To implement an outsourcing strategy, define your objectives and identify the tasks to be outsourced. Select qualified providers, draft a clear contract, and establish performance indicators. Monitor progress, evaluate results, and adjust the strategy as needed to optimize benefits.

Definition of Objectives

An outsourcing strategy begins with defining your objectives. You then identify the tasks to be entrusted to external providers. The costs and benefits of outsourcing are then assessed.

Selection of Providers

You search for qualified providers in the chosen field and analyze their skills and experiences. The received proposals are compared to select the most suitable provider.

Drafting the Contract

Once the provider is chosen, you draft a clear and precise contract. Expectations and deadlines are specified to avoid any ambiguity. Performance indicators are established to measure results. Training is provided if necessary, for example, for new technologies.

Monitoring and Evaluation

You maintain regular communication with the provider to monitor the progress of the work. The results achieved are evaluated to verify the effectiveness of the outsourcing. If necessary, you adjust the strategy based on the observed results. A trusting relationship with the providers is crucial, and contracts with high-performing providers are renewed.

Problem Management and Optimization

Potential issues are resolved quickly to avoid delays. Finally, the return on investment is analyzed to measure the benefits. Practices are adjusted to future needs to continuously optimize your outsourcing strategy.

Conclusion

An outsourcing strategy arises from a desire to focus on one's core business and delegate tedious and time-consuming tasks. It also aims to improve the overall quality of an activity, as outsourcing means relying on an expert agency. The two types of strategies are BPO (Business Process Outsourcing) and subcontracting. These targets are different: one pertains to a business process, while the other is for specific tasks.