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Drive Business Values through Outsourcing

April 12, 2019Kirithiga SIT Outsource Standard

A traditional method with a more innovative approach; not just cost-effective but more aligned towards creating effectiveness


Businesses generally outsource their processes, that might be IT outsourcing or any other
specific set of tasks to a vendor. B2B outsourcing is not a new trend, it has been here from the day trading is practiced

Why businesses started to outsource?

Businesses need to have a long flawless information flow and knowledge processing streamline thereby enhancing their business objectives continuously. With the IT era, businesses were able to achieve the smooth flow of the management internally using CRMs and ERP.

Forced globalization lead to the factor in the expansion of every business to world market. You, as a business owner, would have felt that procuring consumers from different countries became more easy than before. So did your trading partners came from the other parts of the world. Suppliers from various regions brought in new ideas, improved information and reliable services/products.

Example : Wal-Mart currently procures merchandise from more than 70 countries around the world while working with 61,000 suppliers in the United States alone.

When a business outsource any of their processes, the primary idea was always to cut down the cost spent in that same internal operation. A survey report on “B2B outsourcing”, companies have answered which part of their in-house activity, they are likely looking for outsourcing.

The survey report and also from our BA team, we found that many companies are struggling to fill the gaps in their processes. The common question we hear from them is “How to create that bandwidth and fill the gaps with potential answers ?”.

An innovative approach towards B2B partnership

There are many studies on the benefits of outsourcing projects. But the few of the B2B partnerships are very strong and successful. For example: In the evolution of the IT era happening, Kodak outsourced their IT managed services to IBM, becoming the first global customer to them. Overall, this arrangement was of much value to Kodak, since even though it gave away its control over the data center, it gained control over a much wider scale of the company’s operations

As an outsource provider, ask the following questions to yourself

  • What is the primary problem of my partner?
  • Where is the place I have to create an impact that will solve every problem?
  • Will I pay the same for the quality of service offered by me to a third party?

Instead of addressing only the problem said by your partner, dig deeper to find where is it creating impact and try addressing those problems.

Business Understanding

Before starting the service, prepare a sheet of a questionnaire that contains simple questions which will get to know about your partner’s business values. Include questions like what is the vision of their business and how it will help their end users?

Since many outsource providers are invoicing sheer on the hours of development or working, many businesses feel that the cost-effective move in the outsourcing might damage their reputation by providing low-quality services to their end users.

To overcome this, develop an approach that will help you understand the emotional values behind their business. Many businesses function around “Why they do What they do”. It puts them to an expectation in meeting an IT outsource provider who will connect with them at a quality level.

Instant Support

Every business owner is looking for a potential supportive friend in his outsource provider. The cardinal rule of outsourcing started because they wanted somebody to align their hustle and create a room that has more time and focus on running their business. So, the business expects you, as their outsource provider be at a point for instant support.

Be able to provide support to them across 24 hours a day; if you have different time zones. To function without having a disrupted feel, you can enable a team that functions across your region, so you can have an exclusive support team which will keep your business vendor engaged at all times

Save Cost but Be effective

Outsourcing and cost-effective go hand in hand. Another major advantage of outsourcing tasks is that business owners can offload work they don’t love doing. An entrepreneur won’t like (or be good at) every task it takes to run a successful online business — and that’s one-way outsourcing can help.

For example, an IT outsourcing provider can fix a technical issue in a few minutes which might have taken four-plus hours researching, studying and then fixing it by their in-house team. A seasoned tech pro might spend a fraction of that time in creating each module and also enhance them — so that they can have that extra 4-5 more hours each week to focus on other tasks that will boost their revenue.

Educate your team to function around the concept of “Cost-effective but be effective” The bottom line is you have to be increasing the productivity of your partner, but able to provide it at cost-effective ways.

Unlike consumers, businesses make decisions based on cost-benefit analyses. If the marginal benefit of your product is greater than their marginal cost to think about it, pay for it and implement it, then they will buy (although don’t underestimate the cost of “thinking about it”, AKA whether it’s important enough for them to give a shit).

Conclusion

Innovation leads to always enhancements. Business relationships forged on the emotions that create trust and belief. Every business owners or companies decide based on how much value their business gets from your solution, and they have teams that define their pain points, so they’re more than happy to articulate them to you if it means you’ll build a solution. Keep your visions and goals focussed in helping and creating impacts on their lives and the rest will be history.

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