Outsourcing only for the sole reason of cost saving Never sacrifice the quality of work with price. Lowering your standards just for the sake of saving could even result in having all the work re-done and worse, cost you more than the initial project. You should aim for cost-efficiency and cost-effectiveness.
Not understanding the process you want to outsourceOnly outsource things that are outside your core competency. Don’t outsource tasks that can be automated. For example, you won’t need to hire someone who will send out newsletters or sift your e-mails – there are tools available for these.
Employing the wrong peopleNo matter how urgent a job is, you should never rush into an agreement without assessing a person’s skills and experience. Outsourcing itself is risky, and the last thing you want is to hire someone who is incompetent in handling the tasks your company couldn’t handle either.
Failing to evaluate your performanceYour company should have an objective in the first place. Before you outsource, set specific and measurable goals. Then measure your company’s performance with these standards, so you’ll know if you’re able to achieve these.
Lacking guidance from the companyJust because you outsource your business process doesn’t mean you won’t need any managers. You still need to hire and train someone who will look after your outsourced team. Having the right management team ensures a good flow of communication between the two parties. Outsourcing is not a straightforward remedy to your problems. You have to understand the industry and be prepared, to avoid ending up with these costly mistakes.
The Outsourced Accountant supports Australian and New Zealand accounting firms by helping them understand and implement outsourcing solutions to help them become more proactive and truly add value to their clients. If you want to know more about outsourcing, call us at 1300 896 522 and download our e-book.