Outsourcing: make it work for your company.Outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. is becoming popular even in small and midsize companies. Nowadays, a small business may not have staff members such as a Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. recruiter or a 401(k) specialist in house. As the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the transforms the way businesses communicate with their clients, vendors and employees, many of these functions are being handled by outsourcers. Here are some tips to help executives determine what functions to outsource and how best to use an outsourcer. [] Decide what's important. If a function is not strategic to your business--for instance, payroll services or health insurance needs in a recruiting agency with only ten employees--consider outsourcing it to an expert provider. [] Integrate your services. Look to providers that can efficiently integrate all your outsourced business functions--accounting, payroll and HR services, for example--instead of using individual vendors for each. Working with one-stop outsourcers will provide better overall results. [] Assess customer support periodically. Does the outsourcer periodically check on how its live and Web-based customer service departments are doing? It should. Find out how well it monitors its customer support. As a client, you can insist on remedial action A remedial action is a change made to a nonconforming product or service to address the deficiency. Rework and repair are generally the remedial actions taken on products, while services usually require additional services to be performed to ensure satisfaction. . [] Insist on name recognition. Be sure the company you choose for outsourcing is partnered with best-of-the-industry providers: It should be linked to companies with established reputations--well-known HMOs, for example, for health benefits. [] Don't go halfway. Don't settle for half-hearted measures or intermediaries who manage only some aspects of your business when the more efficient solution is to outsource the entire process. For example, if the telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. employees of a credit collection company only make calls on your behalf but do not follow up with any necessary customer visits, the collection function may be incomplete. [] Accountability is everything. If you decide to work with an outsourcer who, in turn, is going to "outsource" your business, make sure the original outsourcer is completely accountable; the new entrant en·trant n. One that enters, especially one that enters a competition. [French, from present participle of entrer, to enter, from Old French; see enter. on the scene may not be aware of your requirements. [] Beware be·ware v. be·wared, be·war·ing, be·wares v.tr. To be on guard against; be cautious of: "Beware the ides of March" Shakespeare. v. of regulations. Make sure your outsourcing partner understands and complies with all the rules and regulations governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. your industry and the workplace. [] Insist on peace of mind. Your outsourcing partner should control its own infrastructure and have built-in safeguards, for instance, when it comes to protecting your information and your employees' privacy. |
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