Saving money is the main aim of all businesses, and an easy way to do that is by using outsourced services.
Apart from the money it saves your business, using an outsourcing partner helps your business processes run more smoothly.
Before you dive in and use an outsourcing company, you have to identify which parts of the processes you want to outsource to save money and increase customer satisfaction.
This article explains all the factors you need to evaluate and undertake a cost-benefit analysis before you commit to a long-term outsourcing agreement.
Don’t Underestimate The Costs Of Outsourcing
Most companies use outsourcing to save money, but you have to do a total cost evaluation to determine the right ROI for your business.
There are several costs to consider.
First is the hourly cost you pay to hire someone to perform the tasks you need. Secondly, you must factor in the amount of money it will take to source, hire, train and manage your new VA.
The business process can be tricky when hiring an outsourced worker, so look at the overall investment cost before signing any agreement.
Each contract agreement you sign for outsourced workers must have specific objectives. There will also be an exit clause in the contract.
This exit agreement clause allows both parties to withdraw from the contract terms at an earlier stage if things aren’t working out.
However, you may incur additional costs if you exit the agreement outside the terms of the exit clause.
Simple Guide To Cost Benefit Analysis
Cost-benefit analysis is critical and must be carried out to understand all the fixed costs involved before you commit to any outsourcing project.
You must have up-to-date data on all your existing processes to ensure you paint an accurate picture of all the costs you will need to consider. Failing to do a cost-benefit analysis will lead to you losing money.
Once you have all the core competencies relating to your financial figures, you can start interviewing outsource workers.
Below are the critical qualitative factors you need to follow before hiring:
Factor 1: How much would it cost to employ a salaried worker instead of outsourcing fully?
Factor 2: You need to find the total cost of outsourcing the project.
Factor 3: Compile a for and against financial breakdown before outsourcing.
Factor 4: Calculate the overall value of each benefit of outsourcing.
Factor 5: You must determine how long it will take to get a return on your investments based on the revenue it brings in and the cost incurred.
Factor 6: Focus on total costs to your organisation and project if the ROI is healthy enough to warrant the effort
Always Aim For Improvements In Quality
Outsourcing isn’t just about saving money. It is also about improving the quality of the product or service levels.
Companies often get distracted by how much money they can save and neglect the quality, leading to customer satisfaction levels dropping.
You must be confident that when you use an outsourcing partner, it will increase customer satisfaction as well as save the company money.
There is always an element of risk when you start the business process of hiring an outsourced company. But, unfortunately, you won’t know until the end-to-end process is complete.
Customers will be quick to tell you when they are unhappy but, unfortunately, not so quick to leave positive feedback, so you must get the outsourcing balance right.
A quality outsourcing business will be determined to offer an excellent level of service, but it is up to you to ensure they do.
This can be achieved by building an open, transparent working relationship built on trust and commitment. Doing so will benefit both parties and, more importantly, your customers.
Outsource The Right Tasks
Before you use an outsourcing company, you must know which administration tasks you want to outsource.
Companies often find it most beneficial to outsource services to do the time-consuming tasks that must be done daily.
It is too easy to get caught up in admin tasks that take a long time to process, like inputting data, and lose focus on the more essential aspects of your business that make you profit.
Outsourcing daily time-heavy tasks allow you to dedicate your time to attracting potential new clients.
Once you see how effective outsourcing can be, you will want to evolve your outsourcing strategies to tasks beyond primary administration duties.
Hiring a virtual assistant with extensive social media management knowledge may be advantageous. As your company grows, you may consider hiring more than one virtual assistant.
Alternatively, you could increase your virtual assistant’s working hours and provide the necessary training for both roles. This may save you money in the long term.
Always make sure you evaluate your business to ensure you are always getting the most out of your outsourced workers.
Get More Return On Investment
You will be hard-pressed to find any business that doesn’t strive to make its return on investment (ROI) as healthy as possible.
However, some companies fail to take the same approach when they hire outsourced workers.
Hiring a virtual assistant isn’t just about easing the workload on your in-house staff. It should also be about maximising your expected ROI and knowing the advantages.
Calculating all the variable and fixed costs will go a long way to achieving your ROI goals.
Building a solid working relationship with your hired virtual assistant will prove mutually beneficial as your VA will be willing to go that extra mile, or 10 minutes each day, because they want to be in a solid position to be offered extra contracted hours.
The last thing you need as a business owner is to pay out more than what is coming in. This applies to the cost of hiring a virtual assistant just like all other parts of your business.
Staying on top of your financial figures and ensuring your ROI remains healthy is vital if you want to retain a competitive advantage.
Use Outsourced Services For The Best ROI
Many business owners are shocked at the complexities they may encounter when hiring virtual assistants.
As this article has explained, you can’t afford to jump straight in and hire an outsourced worker without doing your due diligence.
There are many factors to consider, such as working out all the variable costs and drawing up contracts that meet legal compliance.
And if you need help with hiring and managing a VA, then contact us today. We will source, hire, train and even manage the perfect virtual assistant that matches your business requirements.
Don’t hesitate to give us a call and have a free consultation. You will be surprised how quickly we can get you up and running with your new virtual assistant.