Learn how our Managed Operations model provides the perfect middle ground between outsourcing and incorporating.

talk expert
Talk to
an Expert

Explore the opportunities with us.

Contact Us

Archive for the 'Outsourcing Research / Trends' Category

How Outsourcing Data Entry Processing Benefits Your Business

by: Finella Kristle Panlilio

Wednesday, November 8, 2017 | Comments (0)

Category: Outsourcing Research / Trends

Data, in its raw form, comes from various documents, transactions, and systems that could number in hundreds of thousands. For raw data to be useful and meaningful for businesses, it needs to be processed and converted into organized and actionable information.

But data processing encompasses more than just data entry, as it also involves other skill sets such as validation, analysis, organization, and conversion.

Your internal team may eventually get bogged down with the bulk of work involved in data processing. It also makes your company run a major risk of spending a great deal of time on data processing instead of focusing on its core activities.

Such issues in data processing can seriously affect your business operations and revenue. On the other hand, outsourcing services for your data entry work offers viable solutions in increasing your company's efficiency, savings, and growth.

Data entry outsourcing contributes to the improvement of businesses in multifarious ways, including:

  1. Reduction of cost

    Outsourcing companies, especially offshore outsourcing providers, use their economies of scale to perform the same work with lower labor and overhead costs.

    By hiring outsourcing companies, you no longer need to spend for technology, software, and manpower training to establish your data operations.

  2. Faster turnaround time and round the clock operations

    In most cases, the amount of data will require a dedicated team of data processing specialists to work on all your requirements. Data entry outsourcing companies handle the simplest to the most complex data processing work without any delay.

    Most outsourcing providers also use high-end tools—from high-speed scanning machines to top-of-the-line software that effectively cut data processing time to shorter periods.

    Moreover, most outsourcing services operate 24/7. There’s continuity in processing your data and prompt arrival of output as you need them. Round-the-clock operations also ensure that all the work gets done efficiently.

    And because data processing vendors are deadline oriented, you get to stick to your own schedule with your customers.

  3. Expertise in data management and improved quality of work

    Outsourcing providers train their personnel to become highly skilled in data management in different key industries like telecom, medical, manufacturing, and information technology. This makes them capable of working all the stages of data entry and processing with utmost levels of accuracy and quality.

    Additionally, an organized process makes outsourcing companies finish one project after another with ease and efficiency.

  4. Total data security

    It's quite understandable how outsourcing data processing often sparks fears around data security since the control is not in-house. To allay this fear, most data processing firms apply international security standards to safeguard data and enable their clients to perform regular audits of all their data security measures and technology. These safety checks help secure your data and ensure that no information is lost and mishandled at any stage.

  5. Ability for a company to focus on core business

    For many companies, data processing is not a core business process. Considering the amount of work it involves and the resources it needs, it might be a better option for you to get a third-party provider.

    This way, you can focus your attention and use your resources in improving your core processes, servicing your clients, and growing your business.

    Getting good data services can also give you great mileage over your competitors. On the one hand, you can rely on your outsourcing partner to fast-track one integral part of your business operations, and on the other, you get to stay on top of your other company goals. With this kind of set-up, you get to maximize productivity in all aspects of your business.

Outsourced data processing has been around for many decades, and many specialized firms can help your business in its data entry and processing needs. MicroSourcing provides a unique solution where you can retain a great deal of control over your outsourced data processing operations while leveraging the expertise and resources of an experienced offshore partner.


Tips for Delegating Work Effectively

by: Finella Kristle Panlilio

Wednesday, November 22, 2017 | Comments (0)

Category: Outsourcing Research / Trends

Startups and small businesses tend to want to take control over everything – for them, it is easier to monitor progress when you keep it in-house. However, delegation is a practice that is essential to achieve real business growth. When you have a small team, it is not ideal to juggle tasks. Handling many different responsibilities will distract you from your core business competencies.

Delegation and outsourcing

When delegating work, know that this doesn't always mean that you have to hire more staff. Expanding your in-house staff can be costly. Allocate your resources instead to scaling up your business and delegate work by outsourcing them.

Outsourcing is a cost-effective solution that gives you access to highly-skilled workforce without having to worry about the additional costs and logistics concerns that come with it – you only have to pay for the service you require.

Additionally, outsourcing offers various flexible options to help you get started with delegation. You can start with outsourcing specific tasks first to test how it works for you. As you gain more confidence with outsourcing and with your outsourcing partner, you can gradually outsource larger projects and arrange for a long-term partnership.

What to outsource

The success and the continuous growth of the outsourcing industry can be partially attributed to the wide range of services different outsourcing companies offer. Nowadays, you can outsource almost anything; you can start with outsourcing administrative tasks to a virtual assistant or outsource different back-office departments such as finance and accounting, recruitment and human resources, and IT. There are also outsourcing services for marketing, creatives and production, as well as customer service.

When to outsource

Deciding when it's time to outsource varies from case to case. Essentially, you need to assess your team's current workload and identify the areas that need more focus. Based on your priorities, would you have enough time and manpower to handle all of them with equal dedication? If your answer is no, then the higher level priorities should be handled by your team and outsource the other tasks, with the volume of work to be outsourced depending on urgency and your budget.

You should also identify the areas that need special skills that your team lack. Obviously, you need to outsource these projects to gain access to professionals with the right skills and resources to get the job done.

Conclusion

Overcome stagnation and delegate parts of your business processes. Consider outsourcing work to third-company providers that offer outsourcing services with the managed operations approach. With managed operations, you will have full control over your outsourced operations, with your outsourcing partner serving as your representative in supervising your external team.


4 Most Common Outsourcing Mistakes and How to Avoid Them

by: Finella Kristle Panlilio

Monday, November 20, 2017 | Comments (0)

Category: Outsourcing Research / Trends

We can't stress enough how outsourcing might just be the key for your company to save money, expand capacity, and have access to extensive resources and specialized expertise for many of your business functions. However, all these can only be achieved if you do it right. Make an outsourcing mistake and the consequences will be critical – it can cause you to waste more time and money, have poor customer service, and even cause your business to fail.

Common outsourcing mistakes

The first step to avoiding outsourcing mistakes is to be aware of them. Here are four of the most common outsourcing mistakes and how you can avoid them.

Going for the cheapest service

Outsourcing generally provides you high-quality solutions at affordable costs. However, choosing an outsourcing provider based on price alone is not always a wise idea. Select your provider through competitive bidding. Review each proposal to see which of the potential vendors will meet your specifications at reasonable costs. Identifying the outsourcing company that you can build a long-term partnership with should also be taken into consideration.

Insufficient guidance

Your in-house team follows a set of guidelines and processes in order for your company to have a streamlined system and to run smoothly. Outsourcing essentially means you are hiring new people. Considering that your outsourcing provider will be working with you remotely, they need to have more guidance in the form of comprehensively documented guidelines and procedures that they can incorporate into their own processes.

The common mistake among companies that outsource is failing to provide enough guidance. Requirements and scope of work should always be clear to help encourage accountability and management of expectations. Defining the project clearly will also help you identify an accurate job description, which in turn will help you find the right provider fit for the job.

Lack of communication

Just because you can delegate work to experts who have specialized skills for the outsourced job, it does not mean you are free from the responsibility of supervising your outsourcing partner. Just as you require your offshore team to be available for correspondence and to be mindful of deadlines, you should also always be reachable so they can receive support and supervision, especially when they need information from you in order to perform their tasks accurately.

Feedback is also an important part of the process. Work with your outsourcing provider in managing your outsourced operations. Regularly provide constructive feedback that will help them identify the areas they need to maintain or improve. Telling them exactly what works and what's not working for you can help them provide better service and achieve the results you expect.

Unfamiliarity with the differences in time zones and cultures

Offshore outsourcing is more efficient and cost-effective than outsourcing to local providers. This entails challenges that lead to misunderstandings. The most common challenge is the cultural and time zone differences. Take time to know and understand your offshore team's values and culture, and their ethics when it comes to work and communicating with clients. Also, understand that your outsourcing partner may be located in a different time zone.

Keep an open mind to these differences and make room for allowances. Communication is the key to building a strong and lasting partnership. Choose an outsourcing provider that is accountable and has the skills and resources you need to add value to your business. At the same time, you should also do your part in being responsible in choosing the right partner and in being a proactive client and supervisor.

Whether you're extending your own company to the Philippines or just outsourcing a part of your operations, partnering with MicroSourcing guarantees that you will receive all the support you need in managing your operations here. Managed operations with MicroSourcing means that we will manage your Filipino team together. You can choose to have your own locally-hired managers or take advantage of our operations managers to serve as your representative in providing training and support to your offshore team.


4 Vendor Management Tips for a Successful Outsourcing Partnership

by: Finella Kristle Panlilio

Thursday, November 16, 2017 | Comments (0)

Category: Outsourcing Research / Trends

According to Gartner, vendor management is "a discipline that enables organizations to control costs, drive service excellence and mitigate risks to gain increased value from their vendors throughout the deal life cycle."

For an outsourcing partnership to work, there are things that both your company and your vendor or service provider should take into consideration. Successful vendor management is not how you are able to get the lowest price or a really good deal. Vendor management is about working and communicating with your outsourcing provider to make arrangements that are valuable to both parties.

Tips for a successful outsourcing partnership

Here are some vendor management tips for a mutually successful outsourcing partnership.

Transparency

Having a clear communication with your outsourcing vendor allows them to serve you better. You don't have to share all confidential information, but just enough to avoid misunderstandings. Share with them key business strategies that involve the product or project they are working on so they can also gain some insight that they can apply in the work that they are doing for you. For your security, make sure that you have a non-disclosure agreement (NDA) signed with your outsourcing vendor.

Communication and Collaboration

It is also important that both parties know and understand each other's priorities. Let the vendors know exactly what you need and give them enough information to allow them to provide the best solution for you. In turn, your vendor should also let you know what you can expect from them and the turnaround time. These concerns should be settled before signing a contract. The scope of work and the timeline must be clear.

Set up regular communications and project management arrangements with your vendor to ensure that agenda and priorities are monitored and on-track. Communication can be done through email and messaging platforms such as Slack or Skype, while agenda and deadlines can be managed through project management systems such as Asana.

Offer Commitment to Gain Commitment

A successful vendor management is when you form an outsourcing partnership with a vendor who will commit to helping you reach your business goals and priorities. In turn, you must also be willing to give your vendors your commitment to work with them. This doesn’t mean that you will agree to their pricing right away. It simply means that both sides should reach an agreeable rate that is reasonable and competitive.

Long-term Partnerships

Building a long-term outsourcing partnership can save your more money than constantly changing vendors to look for a cheaper solution. A long-term partnership means consistent service quality. Trust is also stronger with this kind of relationship. Further, it is also easier to reach agreements with a long-term partner that already understands your business, and on the same hand, a partner with a system that you understand and has been customized to adapt your processes.


4 Signs You Need to Outsource Your Accounting

by: Finella Kristle Panlilio

Monday, November 13, 2017 | Comments (0)

Category: Outsourcing Research / Trends

One of the most common mistakes that startups and small businesses make is not asking for help. Business owners, regardless of scale, will inevitably face challenges along the way. If you think you can make it on your own, it's possible, but the progress will be painfully slow.

According to the Small Business Facts report of SBA, about two-thirds of businesses with employees survive at least two years, while about half survive at least five years. Startups fail during the volatile first few years because of low productivity and poor cash flow management – both of which can be solved by outsourcing.

Accounting and bookkeeping are business functions that should be ideally outsourced, especially if you have a small staff and few resources. Hiring an outsourced financial specialist gives you access to a highly skilled expert that has a deep understanding of your industry.

Delegating tasks to a third party provider also offers a refreshing insight from an outsider on how your business can be further improved. Outsourced accountants and bookkeepers will do more than financial reporting; they will also help you identify issues and find ways to improve in those areas and maintain stability in the areas that are doing well.

When to consider outsourcing accounting

How do you know if your business needs to outsource accounting? If these red flags apply to your business, then it's time to consider outsourcing.

No existing financial management

Poor financial management, or the lack thereof, will be the number one cause of your company's downfall. Your cash flow plays a big role in making important business decisions. If you have no idea about how your business is doing financially, it’s time to outsource finance and accounting to the experts and get it under control in no time.

You keep track of your finances but cannot interpret the data

Keeping track of your earnings and expenses is a good practice, but not enough to drive your business towards your goals. If you don't know what to do with the data you have and how it can help with creating business strategies, then a financial analyst will help you identify your assets and liabilities and what to do with them.

You need an accountant but don't have the budget

One of the advantages of outsourcing is the processes and project arrangement is tailored to your requirements. You can acquire the services you need only when necessary. The options are also scalable to your budget. You can outsource a specific task to a single person, or hire a team to work within that budget. As your financial situation improves and becomes more stable, you can then increase the capacity of your outsourced team.

Time spent on managing finances makes your productivity suffer

Handling your finances on your own or delegating the tasks to other members of your team who also have other roles is counterproductive. Finance and accounting are time-consuming and require a dedicated specialist to do the job. Outsourcing finance work frees up you and your employees' time to focus on your core business processes and will boost your business efficiency.

In the Philippines, MicroSourcing is a leading outsourcing provider with finance and accounting professionals who are trained in international accounting standards. Outsource your financial processes to us, including payroll, bookkeeping, financial reporting, tax compliance, and more. Contact us to learn how we can help.