Outsourcing has gained a lot of popularity in recent years, and for all the right reasons. There are different outsourcing strategies that companies can adopt based on their requirements. However, the existence of non-standardization in so many places calls for an inventive and analytical strategy.
With all the issues and risk factors involved, outsourcing clients and vendors are seeking to standardize procedures across markets and products in order to fulfill cost constraints, drive savings, and develop scalability. Outsourcing has become a strategic cornerstone in contemporary corporate operations for mid-size businesses in the USA. The need for standardized outsourcing practices is a significant problem for these organizations, as they have to deal with outsourcing services for digital marketing, legal processes, digital/graphic/engineering design, accounting and financial management, and mobile & web app development.
This article will explore the problem, breaking it down into its parts, and advocating for a standardized, innovative, and efficient strategy that fits the culture of mid-size companies. Let’s take a look here to understand why standardization is so crucial,
The Challenge: Non-Standardized Outsourcing Practices
“Standardization of business processes aims at improving operational performance and reducing costs by decreasing process errors, facilitating communication, or just profiting from expert knowledge that has, among others, been used to develop process standards to achieve those goals” (Ramakumar and Cooper 2004).
Activities and responsibilities can become varied in outsourcing and include graphic design, legal procedures, accounting, digital marketing, and application development, thus making standardization even more necessary. By introducing standardization, one can make systematic procedures, concepts, and approaches that promote coherence and consistency among these fields.
At present, there are numerous companies providing outsourcing services. In such a competitive world, a well-developed and standardized delivery model can be positioned as a differentiator for service providers while enabling them to offer low-cost, value added services to their clients. It will tackle the problems that are faced during the integration of outsourced tasks into the core operations of a corporation,, like the possibility of inefficiencies, ambiguities, and fragmented workflows that arise from the absence of standardized practices. In this article, standardization in outsourcing services for digital marketing, legal processes, digital/graphic/engineering design, accounting and financial management, and mobile & web app development will be explored. Beginning with,
Graphic/Engineering Design
In order for a company to outsource their graphic design needs in a standardized manner, they need to follow certain steps. Firstly, to acquire the designs required from an on-demand graphic design business, a company’s design brief is of the utmost importance. As per penji.com, “Once you have your colors, fonts, and brand identities in order, it’ll be easier to plan out the rest of your designs.” Secondly, not underestimating the budget is crucial. Choosing the most affordable option consistently may result in a business that is perceived as of low quality. Investing in quality allows passing that quality onto consumers through visually stunning designs.
Setting up the appropriate infrastructure for communication and stability is equally important, as is establishing onboarding, guiding new hires through business operations, remaining accessible for assistance, and establishing a consistent schedule for achieving success. And lastly, it is necessary to make sure the outsourced design team is compensated fairly and treated with respect.
Legal Process Outsourcing
There is a significant variation in labor costs across the United States and globally. Since the people or businesses that provide the hired services can do them for less money than the lawyer’s own staff, outsourcing helps lawyers cut costs, which often means lower costs for the client as well.
When it comes to standardization of the services, there are some rules that need to be followed. For instance, as per The Ethics of Outsourcing Legal Work, “An outsourcing attorney must ensure the vendor’s conduct is compatible with the attorney’s ethical obligations, including competence.”
Legal research, contract preparation, document review, and other duties are among the many tasks for which outsourcing services are sought in the field. A mid-sized business may need help guaranteeing compliance, upholding confidentiality, and monitoring the status of legal activities in the absence of defined procedures. This disintegration may put the business at risk for legal issues and make it more difficult to integrate outside legal assistance smoothly.
Therefore, a company should make sure that the following steps are carried out: Conducting reference checks and background investigations, Interviewing the main project lawyers, Reviewing security systems and, in the case of offshoring, visiting facilities, assessing legal and educational systems, particularly ethics rules regarding maintaining client confidentiality.
Accounting and Financial Outsourcing
An essential component of running a business is financial management. Without standard operating procedures, outsourcing accounting tasks can make it difficult for a mid-sized business to ensure accuracy, reconcile financial data, and comply with legal obligations. This lack of consistency can result in inaccuracies, disparities in finances, and heightened audit risks.
To prevent any issues from arising, a company can establish certain standard procedures before and during outsourcing. Such as, identifying Objectives and Key Results (OKRs) and weighing them against present KPIs, asking the vendor for transparency (specific costs, timelines,, and expectations before signing a contract) and tangibility (references, case studies, and signing a service-level agreement that includes metrics and pilot programs along with Proof and codification).
When it comes to security, a robust physical and virtual security protocol is crucial. Make sure the provider offers 24/7 video monitoring and on-site security, along with top certifications for regular data security checks. Standard certifications, like ISO, can provide assurance that a company’s data will remain secure. Lastly, the outsourced accounting solution will only be as good as the provider hired to build it with you; therefore, it all comes down to choosing the right outsourcing partner.
Digital Marketing
According to a report published by PricewaterhouseCoopers Retail & Consumer Industry Practice, 68% of companies in the US choose to outsource their work to other agencies. Since the number is huge, there is a need for standardization to make the process smoother and less prone to errors.
Digital marketing is a dynamic field that requires agility and adaptability. However, without standardized processes, a mid-size company outsourcing its digital marketing efforts may struggle with inconsistent messaging, fragmented campaigns, and difficulties in tracking performance across various platforms. This lack of cohesion can hamper the effectiveness of the marketing strategy. When choosing an agency to manage digital marketing, it’s important to make sure they are ready to adjust to changes. When outsourcing online marketing work, it’s important to consider three key factors:
- Quality of Communication: Communicate with the entire team to understand their level of expertise. Opt for a vendor that minimizes communication gaps and request the agency to designate one point of contact once the work commences.
- Level of Experience: Checking the work that the shortlisted agencies have done before finding the right match.
- Cost of service: Being paid a fair wage indicates professionalism, a genuine concern for your brand, and the ability to deliver results.
Besides paying attention to the above three factors, a company also needs to pay attention to setting its achievable Goals and Objectives, finding the right partner who is easy to work with, Identifying the cost structure, Measuring the performance, Optimizing when needed, and Repeating what works. This should make the process more systematic.
Mobile & Web Application Development
For mid-sized businesses, outsourcing the creation of online and mobile applications is standard procedure. Standardized development methods, however, can make it possible for a business to handle upgrades, guarantee compatibility, and integrate several apps. Increased maintenance expenses and a fragmented user experience may arise from this need for more standardization. By opting for software development outsourcing, companies have the potential to reduce their budgets by up to 30%.
When setting up an outsourcing team, a company must make sure to set up a system to be followed to get the maximum benefit out of outsourcing. It will also help in preventing website and mobile app redesign outsourcing accidents like those at Hertz and Accenture in 2019.
Firstly, to eliminate communication barriers, utilizing collaboration tools such as Jira, Asana, etc., along with holding regular stand-up meetings via video or audio, is highly effective in preventing miscommunications and bridging the communication gap with a remote team. Secondly, quality benchmarks and expectations should be laid for maintaining code quality. Moreover, special attention should be paid to confidentiality, liability, data protection, regulation compliance, and intellectual property rights in the contract, regardless of the engagement model chosen. Lastly, ensuring that a vendor has ISO, PCI DSS, and GDPR compliance is crucial for guaranteeing secure software development.
In summary, standardizing outsourcing procedures is essential for mid-sized businesses since it promotes uniformity, effectiveness, and cohesiveness while resolving issues with diverse business processes. This strategy is even more crucial in the corporate environment, where the capacity to adapt and think creatively is necessary for developing inventive and effective processes that meet specific needs. Menal Partners’ standard procedures guarantee optimal efficiency, uniform quality, and smooth cooperation amongst outsourced operations, which will help a business attain long-term success in the current competitive scenario.
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