Outsourcing has become an increasingly popular business strategy, leveraging external resources to perform tasks or services that were traditionally handled in-house. This approach allows you to access specialized expertise that may be extremely difficult to incubate in-house, while at the same time enabling significant cost savings. The Business Process Outsourcing (BPO) sector’s growth is a testament to the model’s success, with the global market expected to grow at 4.67% CAGR from $0.39 trillion in 2024 to $0.49 trillion in 2029.
However, as many business owners can attest, outsourcing isn't without its challenges. From the initiation of hiring to managing tasks and eventually ending contracts, each phase comes with its own set of obstacles. Here's a closer look at some common outsourcing problems you may face as a business owner and how you can navigate these waters effectively.
The problem: The virtual assistants or outsourced employees you engage may not always possess the exact skills required for specific tasks, leading to inefficiencies and subpar outcomes. This may be a hiring issue, a resource-matching issue, or even a job briefing issue.
Solution: To ensure that you hire a resource with the right skill set and equip them with the information to utilize those skills, craft a comprehensive job description that lists all necessary skills and qualifications. Then, use dedicated outsourcing services like Leverage Assistants or Belay, for example, utilizing their specific expertise in vetting resources and matching the appropriately skilled assistants to your job brief. During the interview process, include practical assessments. For example, if hiring for web development, ask candidates to solve real-world coding problems or review their portfolios in detail. This method helps in evaluating not just their theoretical knowledge but also practical skills.
The problem: When your specialist resource is working remotely and often asynchronously, communication becomes one of the most critical aspects of your operations. Differences in language, time zones, and cultural communication preferences can lead to misunderstandings and project delays.
Solution: Adopt tools and practices that bridge communication gaps. Use Slack for continuous communication and Trello for task management, which can help keep everyone on the same page regardless of geographic location. Schedule weekly video calls via Zoom to ensure that verbal instructions are clearly understood and to foster a rapport with your VA. Consider hiring VAs who are fluent in your native language or provide language training to minimize barriers.
The problem: Ensuring consistent quality from remote resources, especially when dealing with complex or creative tasks, can be challenging. Unlike in-person hiring where you can observe and fine-tune your employee’s approach and results, the asynchronicity of outsourcing means you are reliant on the quality of the final deliverable being sufficient.
Solution: Develop a detailed quality assurance protocol. For instance, if outsourcing content creation, create a content guideline that specifies tone, style, and formatting preferences. Use tools like Grammarly for preliminary checks and consider periodic peer reviews among VAs. Regular feedback sessions can also help maintain the standard you expect. Implementing these measures ensures that the final deliverables meet your quality criteria consistently.
The problem: Relying heavily on a single VA or outsourcing service can create a risk if that service becomes unavailable. If there’s any kind of miscommunication, a delay, an emergency, or a tech outage, it can put your entire operations at risk.
Solution: Mitigate this risk either by diversifying your outsourcing partners or by working with specialized outsourcing services that work in coordinated teams. For critical tasks like IT support or customer service, consider having a secondary VA on standby or contract with a small BPO firm that can provide backup as needed.
The problem: Outsourcing can expose your business to potential security threats, especially when sensitive data is handled by external parties. You need a watertight process to guard against both intentional and unintentional security failures.
Solution: Ensure that all VAs sign comprehensive NDAs and adhere to strict security protocols. Utilize secure platforms for data exchange and insist on regular security training. For instance, a financial services firm might use encrypted communication channels and require biannual security compliance certifications from their VAs.
The problem: Cultural differences can affect workplace dynamics and the efficiency of communication. While this may not be directly observable or impactful, it can have extensive indirect effects that need to be taken into account when outsourcing.
Solution: Establish clear cultural communication lines along with cultural training if necessary, and strive to build a culturally aware and inclusive work environment at all times. This could include workshops on business etiquette in different cultures or celebrating international holidays. An e-commerce company in the US, for example, trained their Filipino VAs on US consumer culture to improve interactions with stateside customers.
The problem: While outsourcing provides great efficiency, it can be difficult to suddenly scale services quickly during peak periods or unforeseen demand.
Solution: Plan for scalability by choosing outsourcing partners who can offer flexible service levels. Use a combination of permanent VAs for core services and temporary help for peak times. An IT company for example might retain a core team of developers in-house but outsource additional coding tasks to a freelance platform like Toptal during product launches.
The problem: There are always costs to doing business, and not all of them are upfront or expected. Unexpected costs related to training, additional software, or overhead can accumulate. Sometimes these costs pop up as the scope of your contract expands and may be communicated too late in the process to scale back.
Solution: Anticipate and budget for these costs from the outset. Regularly review your outsourcing contracts to include provisions for such expenses. For every scope increase, establish clear communication from both ends to ensure full visibility of budget requirements.
The problem: Outsourcing can sometimes make it feel like you’re losing control over certain business functions. While this isn’t a bad thing in and of itself, it can still be daunting, especially for smaller businesses that are more used to full control of operations in-house.
Solution: To combat this challenge, establish clear benchmarks and regular reporting protocols. Use project management software to track progress and maintain involvement in project milestones. Google Sheets is one of the simplest tools for this, but there are plenty of professional project management software available as well depending on how much you want to micromanage.
The problem: Shifting tasks back to in-house teams or another provider when a contract ends can lead to discontinuities and knowledge loss. The sudden increase in in-house work if it happens can be a further headache to manage.
Solution: Create a robust transition plan that includes detailed documentation and handover processes. Conduct training sessions to ensure that your in-house team is ready to take over seamlessly. An effective practice is observed in IT where outgoing VAs are required to document their workflows and participate in transition meetings to train their successors.
By addressing these outsourcing challenges with specific strategies and tools, you can enhance the effectiveness and reliability of working with virtual assistants. These approaches will help you maintain high standards and adapt quickly to changing business needs.
Founded by serial entrepreneurs, Leverage Assistants is a white-glove service that helps you find 1% assistants and then teaches you how to build leverage with them. If you're interested in a strategy session to learn how to use an assistant, click here.
Stephen is one of the founders of Lumiere and a Harvard College graduate. He founded Lumiere as a Ph.D. student at Harvard Business School. Lumiere is a selective research program where students work 1-1 with a research mentor to develop an independent research paper.
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