How to Start Outsourcing as a Growing Company?

Outsourcing is a simple method when dealing with a business that has outgrown your team. It falls under the First World Problem category, but still counts as a problem since it has the tendency to stunt your team’s growth.

You may choose to tackle everything without resorting to third-parties, but the likelihood of you succeeding and staying afloat is close to impossible.

Choosing to outsource keeps your potential clients and customers happy because people who are trained in a certain department are taking care of them. It also keeps your core team happy, leaving them to do the tasks they were meant to do. Not to mention you’ll be spending less money by not hiring more people.

It’s a win-win situation that you ought to take advantage of.

Interested? Here’s how you do it:

Step-by-step process in Staff Outsourcing

Step 1: Figure out what you're looking for

No one tries to look for a talent without even knowing what it is they need. Identify what you’re trying to find first.

Do you need people to do simple work that you and your core team are too busy to deal with? Are you looking to save costs instead? Is there a specific specialist that you need, such as an accountant or customer service representative?

After you’ve identified what you need, look into some outsourcing companies that can cater to you. Research before contacting them, too. See how long they’ve been in the business, what their accomplishments are and what customers have to say about them.

You can base your decisions from there.

Step 2. Will you be going for an hourly rate or a set project rate?

If you set a fixed price, you’ll not worry about overbudgeting when you outsource for the first time. It saves you money. The less money spent in a business the better.

However, if you can’t find a round number, go for an hourly price and break down your tasks into hours. You can simply add them up afterwards if you prefer going by the hour.

Step 3. Figure out where you want to outsource to

There are four ways you can outsource:

The benefits of hiring a third-party company is vast. For one, you don’t need to spend money on office equipment and supplies since these companies already have their own where they are based.

However, if you can’t find a round number, go for an hourly price and break down your tasks into hours. You can simply add them up afterwards if you prefer going by the hour.

The best part about local virtual employees is how their time zone is the same as yours. It’s easier to get in contact with them and they can even be physically present in your office if needed.

But they can be a bit costly. You might need to watch out for those that charge a hefty amount yet only have passable skills.

These days, a lot of the outsourced work can be found in the Philippines, in India or any developing country outside of the Americas. These countries are where you can find true talent and dedication, often charging a mere fraction of the usual cost found in the US

You don’t need to worry about whether they work part-time or full-time, as they do both and even during your time zone. They’re usually common in sites such as Fiverr or Upwork but it can be a little difficult finding the right fit, seeing as they have such large databases.

Pro-tip:

Don’t rush the recruitment process. Take time to look up some of the prospects before you contact them. Take a good look at their previous works and portfolios before interviewing. And don’t be afraid to interview a lot.

Freelancers are the cheapest to outsource, seeing as there is no need to spend on insurance, utilities, equipment and rent. You only need to hire when you need them, even if the project is short.

But one downside when hiring a freelancer is their lack of commitment. They don’t only have you as their client, meaning their focus will be divided. They will likely not dedicate too much of their effort and time on you, since they have other people to cater to.

Be careful when you hand any tasks that have a tight deadline. There’s a possibility that freelancers will put off your work for later, or even cancel on you during a crucial date. It’s not common, but it’s highly likely it happens depending on which freelancers you end up hiring.

Step 4. Make sure your expectations and project specifications are clear

Figure out the length of your project. If it’s bookkeeping, the project is more than likely to be long-term. If you need a virtual assistant, then you might need to consider a contract based on your needs.

Your expectations need to be defined and accurate. You also need to be specific in regards to the amount of time you ought to put into the project. Telling your freelancer the exact amount of months or years you need them for will give them a clearer picture.

When you relay your tasks for them, don’t be vague. If possible, be very specific on what you need them to do. This will prevent any future mistakes that tend to happen with outsourced staff. Communication is wonky at best when you aren’t there to personally discuss things with them, so you may need to draft out their tasks before talking to them.

Step 5. Write a job/project description that catches attention
Step 6. When you interview and test your candidates, mind your rates

The interview doesn’t have to be too formal. An interview is not just an opportunity for you to find out how your candidate works, it’s also a chance for them to ask you questions about the project.

And if they’re truly a professional specialist in their field, they will most likely have plenty.

Remember to test them too. It can be something simple like doing a bit of code or even coming up with a paragraph on the spot regarding your site. This approach will allow you to easily eliminate the unqualified ones.

Never forgot a bit of compensation, though. Don’t make it seem as if you’re requesting free work. And don’t be cheap. If your rates are low, they will not take you seriously and give you mediocre work.

After you’ve got your newly-formed team, all that’s left is managing them.

You may choose to tackle everything without resorting to third-parties, but the likelihood of you succeeding and staying afloat is close to impossible.

An experienced and professional freelancer will be proactive with communication. They will regularly update you themselves on the projects they’ve done so far, contacting you via Skype or any software you’ve chosen.

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