While any process that can be executed remotely can potentially be a process that is outsourced, there are trends in outsourcing, and the following is a list of commonly outsourced jobs:
1. Data entry
2. Data processing
3. Document management
6. Employee assistance
7. Recruitment & staffing
8. Benefits administration
10. Payroll processing
14. Tax preparation
15. Debt collection
16. Claims processing
17. Credit underwriting
18. Loan processing
19. Portfolio analysis
20. General transcription
21. Legal transcription
22. Medical transcription
23. Radiology support
24. Medical support
25. IT support
26. IT maintenance
27. Software development
29. Network management
Drafting & Design
30. Mechanical/civil drafting
31. Electronic/electric drafting
32. Engineering & design
33. Product optimization
35. Telephone operations
36. Customer service
38. Customer analysis
The services that we will be able to provide for you are in green.
Identify processes or tasks that require repetitive actions or simple analysis
These processes can be in any department of the company (marketing, finance [including warehousing], HR or production). Each company has a number of jobs in each department that does not involve critical decision-making. These processes can be outsourced with minimal interruption to the functioning of the company.
Codify the process or task so that it can be easily replicated
The processes that were identified in the previous step now need to broken down into individual actions done by the employee(s). These work instructions are made so that the process can be replicated in the outsourcing destination without any hiccups. These instructions can include simple to moderately complex decisions that can be made at the outsourcing destination.
Setup communication method and mode for process
Each process will have points where the client will have to communicate with the outsourcing destination. This may include video, audio and digital communications modes as per the requirement of the process. After the type(s) and mode(s) of communication are identified for the process the two parties can collaborate to optimize the method for effectiveness.
Costing done for the process to be outsourced
All the details gathered are taken into consideration before the costing is done for the process at the outsourcing destination to make sure that expenses are reduced and the efficiency maximized. If there are multiple processes that can be outsourced, these processes can constitute a separate division at the outsourcing destination with multiple exclusive employees, which can later help in cost cutting.
Training and implementation of outsourced process
Since all the requirements have now been identified, the process can be replicated at the outsourcing destination. If the internal resources of the outsourcing destination can absorb the workload existing employees can be trained, if not new employees recruited and trained. The recruitment and training period varies according to the requirement of the process.
Parallel run of outsourced process as a trial
As the new employees are now trained, the initial trials can begin parallel to the existing process at the client’s company. During this process the actual tasks as well as the communication processes are tested to the satisfaction of both the client and the outsourcing destination.
Full implementation of outsourced process
The client can now rely fully on the outsourcing destination for the process that has been outsourced. There will be continual checks on quality after implementation, and the process is considered dynamic, allowing for changes in the process to suite the client company’s growth as needed.
- If employees have specific job instructions, the processes that each employee does can be analyzed to see whether they can be outsourced. If needed the employee at the outsourcing destination can perform an amalgamation of processes from a wide range of employees of the client company.
- If there are any ambiguous points when codifying the process please consult the outsourcing destination so that there is no confusion when it is time for implementation.
- It is sometimes advantageous to outsource only a few processes at first to see what errors there are in communication and processing. This way it will be much smoother when the rest of the processes are outsourced.
This is the number one cause for companies in developed countries to outsource their work to less developed countries. Average per capita incomes in less developed countries such as Sri Lanka are much less than that of developed countries, which means that an employee with the same skill level will require a comparatively smaller payment for the same amount of work. This benefits both the outsourcer as well as the employees hired in the less developed countries, as they will be earning a relatively high wage compared to what their labor would receive if outsourced work was not available.
Increasing Effectiveness & Efficiency
For most companies it becomes difficult to handle all aspects of a business effectively as decision-makers are forced to concentrate on the core competencies of their particular business. Outsourcing repetitive and labor-intensive tasks that require oversight and specialization for efficiency enables a company’s decision-makers to concentrate on strategic and tactical planning that allows it to improve its competitive advantage
Freeing Up Resources
Each company works with limited resources that they need to allocate in a manner that maximizes benefits to the company. Even small companies benefit from outsourcing some of their jobs to free up resources to focus more on areas of the business that need attention. Saving resources by outsourcing labor-intensive or skill-specific functions of the company that underutilize company resources allow faster expansion through efficient use of company resources.
In many companies skilled employees that are needed to find creative solutions to problems can be often bogged down with repetitive tasks that are executed in conditions negative to creative thinking. Outsourcing these tasks help create an environment that is conducive to thinking out-of-the-box, which is a pre-requisite for finding solutions to the ever-present problems in a growing business.
A lot of growing companies have already started outsourcing their business processes to more effectively use their resources. Any company that is looking to compete internationally, and increasingly locally, will need to start outsourcing their work to maintain a competitive advantage. As more and more tasks and jobs that are often essential for the smooth running of a business, but aren’t core competencies of the business, continue to be outsourced the companies that fail to do so are at a definite disadvantage. Their products and services will have to be priced higher, and their ability to find creative solutions to maximize their strengths and opportunities while counterbalancing their weaknesses and safeguarding against threats diminishes.
Outsourcing is the act of contracting out a business process in your company to an outside source. Usually outsourcing is done for processes that aren’t heavy on decision-making and does not include a core competency of the business. BPO (Business Process Outsourcing) and KPO (Knowledge Process Outsourcing) are two common types of outsourcing while IT Services Outsourcing is also gaining some popularity.
These jobs are mainly operational in nature and require training that is usually provided by the outsourcing company. Jobs that can be broken down into specific work instructions can easily be outsourced while keeping high quality and efficiency standards. Some of the most common forms of this kind of outsourcing can be seen in the outsourcing of customer service operations, and back office operations in finance and accounting jobs such as payroll and benefits administration.
These processes require a relatively high level of skill and are usually performed by college graduates. The employees of a KPO specialize in a specific skill-set which allows for higher efficiency in that field. Certain KPOs specialize in providing background information for decision-making and sometimes provide marketing & IT skills for the client company.
Jobs That Can Be Outsourced
If the process producing the end product requires a large amount of labor, the process can be broken down into replicable parts that can then be off-shored to an environment where the labor cost is low.
If the process involves the collection, manipulation or organization of information, this process can be off-shored to a lower-cost environment.
If the process can be broken down into parts with specific actions that can be easily replicated, this process can be off-shored to an environment where the labor cost is low.