Outsourcing your project may seem like running a puppet show without controlling the strings.
Although you provide the guidelines for the show and instructions for the performances, their execution lies in the puppeteer’s hands. As a result, you can expect some unexpected plot twists and unpleasant turns.
Similarly, when you outsource a project to a third-party vendor, the risks and uncertainties are high. Numerous questions can arise, ranging from “Are these vendors reliable?” to “Is this partnership even sustainable for my company’s goals?”.
However, there is a catch: effective management. Even if your project is akin to a career-defining puppet show, you can still entrust it to another puppet master. Be sure you follow some prerequisites and guidelines along the way to guarantee a stellar performance rather than a fiasco.
Continue reading to learn the top four tips for effectively managing your outsourced projects.
Why Choose Outsourcing?
Before we figure out the best approach to the management of outsourced projects, let’s understand why we even choose outsourcing.
Outsourcing is the practice of delegating certain tasks and functions to an external third-party entity. These tasks or processes can include a wide range of activities, including:
- Customer support,
- Information technology services,
- Manufacturing,
- Human resources,
- Accounting,
- Administrative tasks
When a company outsources specific functions, it transfers the responsibility and control of those tasks to the external service provider. As a result, it can allow the company to concentrate on its core competencies and strategic objectives.
In addition to this, outsourcing can help businesses in terms of:
- Cost-savings
- Access to specialized skills
- Increased efficiency
Before we move, there is one important concept to understand within the domain of outsourcing: business process outsourcing. BPO services refer to the practice of outsourcing back-office and front-office business processes to external organizations. This form of outsourcing is gaining rapid popularity around the world with its annual compound growth estimated at 9.1%.
Management 101: Outsourcing Edition
Partnering with an external team to outsource your company’s projects can be a game-changer. However, to successfully reap the benefits of outsourcing, you must put together a comprehensive management plan.
Let’s break down some practical tips and management insights that will streamline your outsourcing journey.
Define Clear Objectives
Just like preparing a script is necessary to direct a puppet show, establishing clear objectives is fundamental to outsourcing. It allows businesses to set precise expectations from the outsourcing partner and appraise the project performance accordingly.
This process includes defining:
- Project goals,
- Scope,
- Timelines,
- Performance metrics
Don’t forget that the clearer your instructions, the easier it is for the outsourcing team to understand your requirements.
For instance, it may be vague when you ask your vendor for “social media marketing services”. On the other hand, if you specify your requirements by requesting “a comprehensive social media marketing strategy for a client’s business, that includes creating content calendars, conducting audience research, managing and scheduling posts on platforms like Facebook and Instagram”
Finally, in order to achieve results that align with your vision, it is crucial to set realistic expectations. While it is recommended to aim high, understanding the limitations and capabilities of your outsourcing team is essential. As a result, you can foster a collaborative working relationship that will allow easier management.
Establish Clear Communication Channels
In order to reinforce mutual understanding in your outsourcing partnership, be sure to make communication a priority!
Initial guidelines are necessary to kickstart the project. However, staying in touch throughout the project:
- Sustains its journey
- Guarantees successful execution
- Promises long-term collaboration
In addition to clearly defining the daily workloads, weekly deadlines, and monthly reviews, you must establish:
- Communication schedule
- Point of contact
- Emergency point of contact
To be more specific, your communication schedule should contain details about the following.
- Communication medium (e.g. Skype, Google Meet, Zoom, etc.)
- Regular updates platforms (e.g. ClickUp, Slack, etc.)
- Meeting days, timings, and specific dates
Setting up these clear communication channels can streamline your collaboration with the outsourcing partner, eliminating any possible miscommunications or confusion.
Finally, the goal is to develop a holistic communication channel that doesn’t alienate your collaboration to just scheduled meetings.
Monitor Progress Actively
The key to effective management is close collaboration, active involvement, and regular performance evaluation. The initial steps concerning instructions and communication set the stage for project milestones that play a crucial role:
- Setting goals and deadlines
- Tracking tasks
- Comparing performances
As stated earlier, businesses must strive to make their workflow more smooth to easily keep track of:
- Missed deadlines
- Delayed task completion
- Progress in quality of work
Moreover, to be more specific, your business may determine:
- The percentage of work completed
- Efficiency in task delivery
- Budget overruns
The key is to evaluate the project’s outcome and the outsourcing team’s performance. As a result of this assessment, you can identify areas of improvement and make informed decisions for future projects.
Risk Assessment
In order to effectively manage the outsourced project in the long run, it is essential to identify risks at the beginning. For instance, your business must anticipate issues like:
- Unforeseen technical challenges,
- Scope changes,
- Resource limitations
For the purposes of risk mitigation, the whole team must be familiar with and in agreement with the chosen communication channels and project management software.
Moreover, as part of your risk management and quality assurance efforts, maintain comprehensive documentation of:
- Identified risks,
- Mitigation strategies,
- Testing results
By regularly reporting on the progress of risk assessment activities, you can promote transparency and accountability within the project team. Finally, maintaining consistency in the process by refining your management techniques and processes can contribute to the project’s long-term success.
Conclusion
Just like a skilled puppeteer skillfully controlling the strings, your ability to successfully manage outsourced projects can significantly contribute to your company’s growth. All your business needs are clear goals and established communication channels to primarily jumpstart and streamline the management process. Further down the line, you must introduce active monitoring and metrics of performance evaluation to appraise your outsourcing collaboration. Finally, by setting the appropriate tools for risk assessment and mitigation, you can confidently navigate through the outsourcing journey with effective management and promising outcomes.