business plan template for outsourcing company

How To Write a Business Plan for IT Outsourcing Company in 9 Steps: Checklist

By alex ryzhkov, resources on it outsourcing company.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Welcome to our blog post on how to write a business plan for an IT outsourcing company in 9 easy steps. In today's fast-paced technology-driven world, the demand for IT services continues to grow at a rapid pace. In fact, according to recent statistical data, the global IT outsourcing market is projected to reach a value of $413.7 billion by 2021, with North America being the largest market in terms of revenue.

So, if you are considering starting your own IT outsourcing company, now is the perfect time to capitalize on the industry's growth and establish a successful business. To help you get started, we have curated a comprehensive checklist of 9 essential steps to guide you through the process of writing a business plan that will set the foundation for your company's success.

Let's dive right in and explore each step in detail, starting with conducting market research. By understanding your target market and analyzing your competitors, you will be able to identify opportunities and challenges that will ultimately shape your business strategy. This knowledge will allow you to determine your core services and offerings, define your business objectives and goals, and develop a pricing strategy that reflects the value you provide.

Next, we will delve into creating a marketing and advertising plan to effectively promote your services to potential clients. This plan should be tailored to your target market, highlighting the unique advantages of your company and positioning you as the go-to IT outsourcing provider.

Establishing a legal structure is also a crucial step that ensures compliance with relevant regulations and protects your business interests. Additionally, creating a financial plan and projecting budgets will allow you to effectively manage your resources and make informed business decisions.

By following these 9 steps, you will have a comprehensive business plan that outlines your IT outsourcing company's path to success. So, let's get started and turn your entrepreneurial dreams into a thriving reality!

• Conduct market research
• Identify target market
• Analyze competitors
• Determine core services and offerings
• Define business objectives and goals
• Develop a pricing strategy
• Create a marketing and advertising plan
• Establish a legal structure
• Create a financial plan and project budgets

Conduct Market Research

Market research is a crucial step in developing a business plan for an IT outsourcing company. It provides valuable insights into the industry landscape, potential customers, and competitors. By conducting thorough market research, you can make informed decisions and create a solid foundation for your business.

When conducting market research, it is essential to gather relevant and up-to-date information about the IT outsourcing industry. Look for industry reports, market trends, and forecasts to gain a comprehensive understanding of the current market conditions and future opportunities.

Market Research Tips:

• Identify your target audience and gather data about their needs, preferences, and pain points.
• Analyze industry trends and technological advancements to identify potential service offerings and areas for growth.
• Study your competitors' strengths, weaknesses, and market positioning to develop a unique selling proposition.
• Engage in surveys or interviews with potential clients to validate your business concept.
• Gather data on pricing structures, customer acquisition costs, and revenue potential to develop a realistic financial plan.

Additionally, consider identifying your target market during the market research phase. Understanding your potential clients' specific needs and pain points can help tailor your services to address those needs effectively. This knowledge will also assist in creating a targeted marketing and advertising plan.

By investing time and effort into conducting thorough market research, you can identify industry gaps, refine your business model, and develop strategies to differentiate your IT outsourcing company from the competition. This knowledge will prove invaluable as you move forward with creating a comprehensive business plan.

Identify Target Market

Identifying your target market is a crucial step in developing a successful business plan for an IT outsourcing company. By understanding who your potential clients are, you can tailor your services and marketing efforts to meet their specific needs and preferences.

When identifying your target market, consider the following:

• Industry focus: Determine the industries or sectors that are most likely to require IT outsourcing services. For example, you may choose to target healthcare organizations, financial institutions, or technology startups.
• Company size: Define the size of companies that would benefit most from your services. Are you targeting small businesses, mid-sized enterprises, or larger corporations?
• Geographic location: Determine whether you will focus on local clients or expand your reach nationally or even internationally.
• Specific needs: Identify the specific IT needs and pain points of your target market. This could include areas such as software development, cloud computing, IT infrastructure, or cybersecurity.

Tips for Identifying Your Target Market:

• Conduct market research to gain insights into your potential clients' behavior, preferences, and challenges.
• Segment your target market based on industry, company size, location, and specific needs.
• Utilize online tools and platforms to gather data and analyze market trends.
• Speak with industry experts and professionals to gather insights and validate your target market assumptions.
• Keep your target market definition flexible and be open to adjusting it based on market feedback and changing trends.

Analyze Competitors

When starting an IT outsourcing company, it's essential to analyze your competitors to understand the market landscape and identify opportunities for differentiation. By studying your competitors' strengths, weaknesses, and strategies, you can position your business for success. Here are some important steps to follow:

• Research and identify your direct competitors in the IT outsourcing industry. Look for companies that offer similar services and target the same client base.
• Examine their service offerings and pricing models. What specific IT services do they provide? How do they package and price their services? Are there any unique features or value propositions they offer?
• Analyze their target market and customer base. Who are their main clients? Do they focus on specific industries or cater to a broader range of businesses? Understanding their client demographics will help you identify gaps and potential areas for specialization.
• Consider their reputation and customer feedback. Online reviews, testimonials, and case studies can provide valuable insights into how well their clients perceive and value their services.
• Assess their marketing and advertising strategies. How do they promote their services? Which channels do they utilize, such as social media, content marketing, or industry events? Understanding their marketing tactics can help you shape your own marketing plan.
• Analyze their online presence, including their website, blog, and social media profiles. Take note of their branding, messaging, and user experience. Identify areas where you can differentiate and improve.
• Consider reaching out to former clients or industry connections to gain additional insights about your competitors.
• Keep an eye on emerging trends in the IT outsourcing industry and monitor any new entrants that may pose a threat or offer innovative solutions.
• Continuously reassess and update your competitive analysis as the market evolves.

Determine Core Services And Offerings

Once you have conducted market research and identified your target market, it is crucial to determine the core services and offerings that your IT outsourcing company will provide. This step involves carefully analyzing the needs and preferences of your target market and aligning your services accordingly.

1. Assess the market demands: Consider the specific IT services that are in high demand within your target market. Are clients seeking software development, network setup, cloud computing, or cybersecurity services? By understanding the market demands, you can tailor your services to meet the needs of potential clients.

2. Leverage your expertise: Evaluate the skills and expertise of your team. Highlight the areas where your company has a competitive advantage and can deliver exceptional results. This can include specialized knowledge in a particular programming language, experience in handling complex network infrastructures, or expertise in implementing robust cybersecurity measures.

3. Determine your offerings: Define the specific services you will offer to clients. Will you provide end-to-end software development solutions, help clients set up and maintain their network infrastructure, or offer comprehensive cybersecurity audits and monitoring? Clearly articulate your offerings to ensure clients understand the full range of services you can provide.

• Consider offering a range of services to cater to different client needs.
• Stay updated with the latest technological advancements in the IT industry to expand your service offerings.
• Regularly assess the market demands and fine-tune your offerings to stay competitive.

4. Assess resource requirements: Identify the resources, such as skilled professionals, software tools, and infrastructure, you need to deliver your core services effectively. Ensure that you have the necessary resources in place or plan to acquire them before offering the services to clients.

5. Consider scalability: Plan your core services in a way that allows for scalability as your business grows. Assess if your offerings can be expanded or modified in the future to accommodate new client requirements.

By carefully determining your core services and offerings, you can position your IT outsourcing company to meet the specific needs of your target market. This strategic decision will be fundamental to attracting and retaining clients while establishing your company as a reliable and trusted partner in the IT industry.

Define Business Objectives And Goals

Defining clear and specific business objectives and goals is crucial for the success of an IT outsourcing company. These objectives will guide your company's actions and help you stay focused on achieving your desired outcomes. Here are some important steps to consider when defining your business objectives and goals:

• Identify your long-term vision: Start by envisioning where you want your company to be in the future. This could be in terms of revenue, market presence, client satisfaction, or any other relevant aspect. Your long-term vision will serve as a guidepost for setting your objectives.
• Set SMART objectives: Make sure your objectives are Specific, Measurable, Achievable, Relevant, and Time-bound . For example, instead of setting a general objective like 'increase revenue,' make it more specific like 'increase annual revenue by 10% within the next fiscal year.'
• Align objectives with core services: Your objectives should be closely aligned with the core services and offerings of your IT outsourcing company. Think about how achieving these objectives will directly impact your ability to deliver exceptional services to your clients.
• Prioritize objectives: It's important to prioritize your objectives based on their importance and feasibility. Consider which objectives are critical for the growth and sustainability of your business and focus your efforts on those first.
• Establish key performance indicators (KPIs): KPIs are measurable metrics that will help you track your progress towards your objectives. Identify the KPIs that are most relevant to your objectives and regularly monitor and analyze the data to ensure you are on track.

Tips for Setting Effective Objectives:

• Involve key stakeholders, including management and employees, in the objective-setting process to ensure buy-in and commitment.
• Make sure your objectives are challenging but realistic. Setting unrealistic goals can lead to frustration and demotivation.
• Regularly review and reassess your objectives to ensure they remain aligned with the evolving needs and goals of your IT outsourcing company.
• Communicate your objectives clearly and consistently to all stakeholders, both internal and external, to foster a sense of shared purpose and accountability.

Defining your business objectives and goals is a critical step in developing a comprehensive business plan for your IT outsourcing company. It will provide a clear direction for your company and serve as a roadmap towards success.

Develop A Pricing Strategy

Developing a pricing strategy is a crucial step in creating a successful business plan for an IT outsourcing company. It involves determining how much to charge for your services and finding the right balance between profitability and competitiveness. Here are some important considerations:

• Understand your costs: Before setting your prices, it is essential to have a clear understanding of your costs, including labor, overhead, equipment, and any other expenses related to providing your services. This will help ensure that your pricing is aligned with your business's profitability goals.
• Research the market: It is essential to research the market to determine the typical pricing structure for IT outsourcing services. This will help you understand the industry trends and ensure that your prices are competitive.
• Differentiate your pricing: Consider offering different pricing options to cater to various customer needs. This could include offering tiered pricing based on service levels or providing bundled packages that offer additional value to customers.
• Consider value-based pricing: Instead of solely focusing on your costs, consider incorporating the value your services bring to clients into your pricing strategy. This approach takes into account the benefits and outcomes your clients can expect from working with your company.
• Be transparent: Clearly communicate your pricing structure to clients, including any potential additional costs or fees. Transparency builds trust and helps clients make informed decisions about partnering with your IT outsourcing company.
• Regularly review and evaluate your pricing strategy to ensure it remains competitive and profitable.
• Consider offering discounts or promotions for new clients or long-term contracts to attract and retain business.

Create A Marketing And Advertising Plan

Once you have determined your target market and analyzed your competitors, it is essential to create a comprehensive marketing and advertising plan to promote your IT outsourcing company and attract potential clients. A well-designed plan will help you maximize your reach, build brand awareness, and generate leads. Here are some important steps to follow:

• Identify your unique selling proposition (USP) and key differentiators: Determine what sets your IT outsourcing company apart from the competition. Highlight your strengths, expertise, and innovative solutions that will appeal to your target market.
• Define your target audience: Identify the specific industries, businesses, or organizations that are most likely to require your services. Understand their needs, pain points, and preferences to tailor your marketing efforts accordingly.
• Choose the right marketing channels: Select a mix of online and offline marketing channels that will effectively reach your target audience. Consider leveraging digital platforms such as search engine optimization (SEO), social media marketing, email marketing, and content marketing. Explore offline options like industry events, trade shows, and direct mail campaigns.
• Create a strong brand identity: Develop a compelling brand logo, tagline, and consistent visual elements that reflect your company's values and resonate with your target market. This consistency will reinforce your brand messaging and enhance brand recognition across all marketing and advertising materials.
• Design a content marketing strategy: Proactively share valuable and relevant content through blog posts, whitepapers, case studies, and ebooks. Position yourself as an industry expert and build trust with your audience. Use SEO techniques to optimize your content and improve your website's visibility in search engine results.
• Implement lead generation tactics: Use lead magnets such as free consultations, webinars, or downloadable resources to capture potential clients' contact information. Connect with them through targeted email campaigns to nurture relationships and convert leads into paying customers.
• Monitor and analyze your marketing efforts: Regularly track the performance of your marketing and advertising activities. Utilize key performance indicators (KPIs) such as website traffic, conversion rates, and social media engagement to assess the effectiveness of your strategies. Make data-driven adjustments to optimize your marketing plan continuously.

Tips for Creating an Effective Marketing and Advertising Plan:

• Stay updated with the latest industry trends and technological advancements to ensure your marketing strategies align with the evolving needs of your target market.
• Build strong partnerships and collaborations with complementary businesses or influencers in the IT industry to expand your reach and gain credibility.
• Regularly review and update your marketing plan to incorporate new ideas and tactics based on feedback and market dynamics. Flexibility is key in an ever-changing business environment.

Establish A Legal Structure

Establishing a legal structure for your IT outsourcing company is crucial for protecting your business and ensuring compliance with applicable laws and regulations. Here are some important steps to take when establishing a legal structure:

• Choose the right business entity: Consult with a legal professional to determine the most suitable legal structure for your company. Common options include sole proprietorship, partnership, limited liability company (LLC), or corporation. Consider factors such as liability protection, taxation, and ease of management before making a decision.
• Register your business: Once you have chosen a legal structure, you will need to register your IT outsourcing company with the appropriate government authorities. This typically involves filling out the necessary paperwork and paying any required fees. Be sure to research and comply with all registration requirements specific to your jurisdiction.
• Obtain necessary licenses and permits: Depending on your location and the nature of your business, you may need to obtain certain licenses and permits to operate legally. Conduct thorough research to identify the specific licenses and permits required for your IT outsourcing company and ensure timely compliance.
• Protect your intellectual property: As an IT outsourcing company, your intellectual property may be a valuable asset. Take steps to protect your proprietary software, designs, and other intellectual property through the use of trademarks, copyrights, and patents. Consult with an intellectual property attorney to understand the best strategies for safeguarding your company's assets.
• Establish contracts and legal agreements: Working with clients and vendors requires clear and enforceable contracts. Draft comprehensive agreements that outline the terms and conditions of your services, project timelines, payment terms, and any other relevant provisions. It is advisable to seek legal advice when creating these contracts to ensure they protect your interests.
• Consult with a qualified attorney or legal professional who specializes in business law to help you navigate the legal aspects of establishing your IT outsourcing company.
• Keep thorough records of all legal documents, contracts, licenses, permits, and registrations.
• Regularly revisit and update your legal structure as your business grows and evolves.

By establishing a solid legal structure for your IT outsourcing company, you can minimize legal risks, protect your business interests, and operate with confidence in the competitive market.

Create A Financial Plan And Project Budgets

Creating a financial plan and project budgets is a vital step in the process of starting an IT outsourcing company. It allows you to have a clear understanding of the financial aspects of your business, helps you set realistic goals, and ensures that you have a roadmap for managing your finances effectively.

When creating a financial plan, it is important to consider various elements such as startup costs, operational expenses, revenue projections, and cash flow management. Here are some key considerations:

• Startup Costs: Identify the initial costs involved in setting up your IT outsourcing company. This may include office space, equipment, licenses, software, and any other necessary infrastructure. It is crucial to accurately estimate these costs to avoid any financial surprises in the early stages.
• Operational Expenses: Analyze and project the ongoing operational expenses that your company will incur. This may include personnel salaries, rent, utilities, insurance, marketing expenses, and other overhead costs. It is essential to have a detailed understanding of these expenses to determine your breakeven point and profitability.
• Revenue Projections: Forecasting your company's revenue is essential for financial planning. Consider factors such as the target market size, competitive landscape, pricing strategy, and sales projections. It is crucial to be realistic and conservative in estimating your revenue potential.
• Cash Flow Management: Effective cash flow management is crucial for the sustainability of your business. Create a cash flow statement that outlines your projected inflows and outflows of cash on a monthly or quarterly basis. This will help you identify potential cash shortages and take necessary measures to mitigate them.
• Consult with a financial advisor or accountant to ensure accuracy and reliability of your financial projections.
• Research and understand the tax obligations and regulations specific to the IT outsourcing industry.
• Regularly review and update your financial plan as your business grows and evolves.

By creating a comprehensive financial plan and project budgets, you will be better equipped to make informed decisions, secure funding if needed, and navigate the financial challenges that may arise in the competitive IT outsourcing industry.

In conclusion, writing a business plan for an IT outsourcing company requires careful consideration and planning. By following these 9 steps, you can create a comprehensive plan that will guide your company's success. Conduct market research to understand your target market and analyze competitors. Determine your core services and offerings, and define your business objectives and goals. Develop a pricing strategy and create a marketing and advertising plan to reach your target audience. Establish a legal structure and create a financial plan to project budgets and ensure financial stability.

By following these steps, you can create a solid foundation for your IT outsourcing company and increase your chances of success in the competitive market.

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BPO Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » B2B Sector

Are you about starting a BPO company? If YES, here is a complete sample BPO business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a BPO company. We also took it further by analyzing and drafting a sample BPO service marketing plan template backed up by actionable guerrilla marketing ideas for BPO companies. So let’s proceed to the business planning section .

One of the most lucrative businesses for an entrepreneur to start up today is a Business Process Outsourcing (BPO). A new BPO company might not be so easy to start up especially as there are already established BPO companies making waves and dominating the scene, however, as a new start-up, one can effectively compete by providing services that would readily fill in the gap.

A BPO company usually handles certain aspects that relates to a business operation such as call centers, finance, human resources, cleaning services or accounting. BPO companies sprung up due to the fact that businesses needed to outsource their non-core functions in order to be able to concentrate on the core functions of their company, sustain themselves and expand.

Using the services of a BPO company is far cheaper for businesses which make BPO companies to be a highly lucrative business. Another important aspect that you would need to consider before starting your business, is a business plan. It is for this reason that a sample BPO business plan is made available for you below;

A Sample BPO Startup Business Plan Template

1. industry overview.

The Business Process Outsourcing (BPO) industry has no dominant company with a large share of the market. The industry is valued at $136 billion and has grown at a 4% per annum between the periods of 2010 to 2015. There are more than 162,000 such businesses in the united states of America, employing more than 900,000 people.

The industry fared well from 2010 to 2015 and this is due to the fact that the US economy vastly improved due to the rising revenue especially in the finance and accounting sectors, human resources industries as well as credit card services and insurance sectors.

Also, employers in the above named sectors outsourced to BPOs in order to control rising costs due to wage increases and rising health insurance.

According to analysis, the industry will continue to experience a fair percent of growth till the year 2022, especially as companies in the affected sectors will be pressured to increase wages for their employees as well as healthcare insurance costs.

According to IBISWorld, the BPO industry is in its growth stage and will grow at a rate of 3.9% over the next 10 years to 2022. In comparison, the economy of the United States will not grow that high as it will grow at 2.5%. This therefore depicts that the industry is a growing one.

Globally, the market for BPOs will reach $220 billion by 2022, which will be due to the fact that companies will be pressured to increase customer satisfaction and improve operational efficiency whilst reducing costs to a reasonable level. Te industry’ growth is due to the fact that businesses have realized how important BPOs are and how they help reduce business risks and increase efficiency.

The United States leads the BPO market globally; however, the Asia-Pacific has the fastest growing market with a CAGR of 10%.

While the Philippines are seen as a strong competitor for BPOs globally, India remains the most lucrative destination for BPOs due to its financial attractiveness, availability of people and skills as well as an appropriate business environment.

Globally, the BPO market revenue declined by $15 billion in 2015 compared to the previous year. The revenue globally for the BPO industry therefore stood at $63.5 billion. Europe, Middle East and Africa generated the largest share of revenue for the BPO industry globally.

2. Executive Summary

Citotech BPO LLC is a standard company that will be located in Houston – Texas to serve all our clients here in the United States and abroad. We intend to provide traditional customer care operations and internal business functions to our various clients as a way to help them handle the non-core aspects of their business.

We are in business to generate revenue and make profit here in the United States of America and our vision is to offer high valued service to our clients and ensure that we not only met up with our clients’ expectations but exceed them as well. We also intend to be amongst the top three BPO companies here in the United States of America by 2023.

We are strategically located in Houston – Texas as it will be very easy for our clients to get to us, whilst easily accessible to our employees. Our location also allows us to have low overheads as well as running costs.

Procuring the best equipment with which to handle our business is a must for us so that we could provide our clients with best service. We also intend to build a business structure that will run smoothly and allow us to achieve our desired goals and objectives.

We will hire the right number of employees who are qualified and competent and who have aligned with our vision as a company and are committed to ensuring that we attain the height we intend for our business.

We will ensure that we provide a conducive and work friendly environment for our employees so that they will be able to focus on work. We will also ensure that they get the right training that will not only enhance their skills but boost productivity for us as well.

We will ensure that our employees are well paid and have the best welfare structure across similar start-ups such as ours in the industry. We know how this can boost their work output and so are willing to ensure that they remain motivated.

Finally, our owner Mr. Steve McMahon is a prominent business man and property developer, who has several businesses both here in Texas and all around the United States of America. He has several years of business experience and all his companies are successful in their own right. He has ensured that only the best are brought to work at Citotech BPO LLC.

3. Our Products and Services

Citotech BPO LLC intends to offer traditional customer care operations and internal business functions as its core functions here in Houston – Texas.

However, we also intend to boost our revenues as well by offering other services that are related to our core functions such as trainings and consultancy services. This is so as to make profit, re-invest part of the profits back into our company and boost our bottom line as well. Below are some of the services we intend to offer our various clients;

• Provision of customer care services to our clients
• Provision of other outsourcing services such as accounting and finance
• Consultancy services

4. Our Mission and Vision Statement

• Our vision is to offer high valued service to our clients and ensure that we not only met up with our clients’ expectations but exceed them as well. We also intend to be amongst the top three BPO companies here in the United States of America by 2023.
• In order to achieve our vision, we intend to ensure that we build a business structure that has committed; professional and highly dedicated employees to allow us attain our goals and objectives. We will also ensure that we get the right equipment that will allow us carry out our job to the highest standard

Our Business Structure

Building the best business structure is very important for us as a business that takes its affairs very seriously and due to this we are willing to go the extra mile to ensure that we hire the best hands that are not only highly qualified but also have the experience to ensure that we are able to attain our desired goals and objectives here at Citotech BPO LLC.

We will be sourcing for highly intelligent individuals who understand what it means to work with a start-up such as ours and ensure that we get to be the preferred BPO company or our clients here in Texas as well as around all the United States of America.

Due to this fact we are going to ensure that the employees we get understand and are aligned with our goals as a company and that our management staff will ensure that our business ethics and standard remains high at all times.

Because we would not be running a conventional BPO company due to the various services that we would be offering, we will be hiring more employees than the average BPO company, to handle all the various responsibilities and tasks so that all the different aspects of the company will run smoothly as one unit, with everyone knowing and understanding their responsibilities.

Below is the business structure we intend to build at Citotech BPO LLC;

Chief Executive Officer

Human Resources and Administrative Manager

Business Development Manager

Infrastructure Manager

Systems Administrator

Frontline Responders

Marketing Executives

Maintenance Department

Security Guard

5. Job Roles and Responsibilities

• Drafts and formulates the company’s core policies
• Drafts the budget and sources for capital for the company
• Reviews policies and removes or modify ineffective ones
• Sources for and hires competent and qualified employees to work for the company
• Ensures that all the administrative functions of the company are effectively coordinated
• In charge of employee welfare package, orientation, induction, performance appraisals and dismissal
• Carries out research on new businesses ideas in order to generate more source of revenue for the company
• Reviews company’s services and looks for ways to upgrade the services
• Works with the marketing executives to determine how corporate sales goals can be achieved
• In charge of all the IT and security systems in the company
• Helps to implement updated solutions across all the company’s infrastructure
• Ensures that company’s data is secure and runs efficiently
• Responsible for the implementation of a network security plan for the organization
• Keep up-to-date with changing network technology and how it is likely to affect the company
• Review software and hardware and recommend upgrades when necessary
• In charge of preparing all the financial information, statement and budget on behalf of the company
• Ensures that the company’s tax records are up-to-date and that it is submitted to the tax authorities on time
• Ensures that the company’s budget is effectively implemented
• In charge of attending to client’s customers’ inquiries, complaints and feedbacks on behalf of the organization
• Keeps up-to-date with industry trends of clients and company policies so as to pass accurate information to the client’s customers
• Ensures that clients are well attended to as well as keep an accurate database of logbooks on behalf of the organization
• Drafts the right marketing strategies on behalf of the organization
• Meets with high level clients and conducts direct marketing on behalf of the organization
• Identify new markets for the company
• Ensures that the equipment bought are genuine
• Carries out light repairs on the equipment in the company
• Installs new equipment and ensures that it works well
• Patrols the premises at night to ensure that no intruder enters
• Monitors the surveillance cameras to ensure that the building is secured at all times
• Carries out any other duties as determined by the management
• Keeps the premises and convenience clean at all times
• Ensures that cleaning supplies are always in stock
• Carries out any other duties as directed by the Human Resources Manager

6. SWOT Analysis

Our intention of starting our own BPO Company is so that we would run a standard business and in order to achieve this, we hired the services of a reputable business consultant here in Texas to look at our business concept and determine if starting this company was the best thing especially as regards the location we are in.

The business consultant was also to help determine if we were going to thrive and compete favorably against our competitors all around the United States of America.

In respect to our request, the business consultant took stock of our strengths, weaknesses, opportunities and threats and used this to determine if we were likely to survive in the BPO industry. Below is the SWOT analysis that was conducted on behalf of Citotech BPO LLC;

We have a strong client relationship management which has allowed us to retain a high number of our clients who outsource several aspects of their business to us and allow us also boost revenue for our company. Part of our strength is the fact that we offer standardized services and deliver processes, resources and tools in an efficient and effective manner.

Our employees are highly competent and qualified and know what it takes to achieve organizational goals. We also have publicity strategies in place that will allow increase awareness for our BPO Company. The various services we offer has also given us an edge over our competitors.

Since we are relatively a new company, we have limited brand presence outside of Texas and this is due to the fact that we are running on a tight budget, which has not allowed us to promote our company as we would have liked. There is also a perceived complexity which has affected our vertical concentration.

• Opportunities

There are several opportunities in this market and they include the fact that there are enough customer bases to be developed and cultivated. There is also an opportunity for us to gain more markets as we expand our business.

The threats that we are likely to face are; declining or slow revenue growth due to a slow economy or the arrival of a major competitor. Every business faces threats and ours is no different, but we have laid down strategies to overcome any challenges we might face.

7. MARKET ANALYSIS

• Market Trends

The BPO industry is very vital to the growth of certain businesses and as such most have developed comfortable relationships that have gone on for decades with their clients. As this relationship grows, these BPO companies are offering their clients consultancy services due to the familiarity with the client’s core business and culture. This is leading to the evolvement of the industry.

A niche of BPOs has started evolving and is known as impact sourcing which is built on the foundation of social responsibility.

The aim of impact sourcing is to deliver quality service at low cost while employing those that were socioeconomically disadvantaged. This is gaining traction as corporations are looking to meet their diversity and social responsibility goals.

Another niche is the knowledge process outsourcing (KPO) where businesses have started to outsource core business services to third parties. This field dwells on tasks that require high research and analytic skills.

8. Our Target Market

There are a huge number of companies (clients) that demand the services of a BPO Company for various reasons. However, in order for us to truly determine our target market, we intend to conduct a thorough market research that will allow us map the necessary strategies in order to attract them to our company.

The aim of the market research we intend to conduct will allow us understand the characteristics of our target market and what to expect from them. In regards to this, we are going to offer our services to the following people;

• Market operators
• Consultancy firms
• Training organizations
• Telecom and IT companies
• Cloud providers
• National regulatory authorities
• Government and public sector
• Financial institutions
• Small and medium enterprises

Our competitive advantage

Our BPO Company is a business that has been established with the intention of offering outsourcing services that are value-added to all our customers. We will offer our services in such a way as to allow us compete favorably against our competitors. We have therefore drafted strategies that would allow us have an edge over our competitors.

We are located in a strategic location that is not only conspicuous but also allow all our employees and clients to easily access us. Our location is one that is also quite cheap enabling us have low overheads that will have an impact on our rates.

We have a highly qualified management team that is not only highly experienced but is also aligned with our core values and objectives.

Our management team are highly committed and dedicated and have the capability of bringing our business to the level we intend for it nationally. All our core objectives are always being communicated and projected positively internally and externally.

We intend to source for and hire employees that are competent and qualified to handle all the responsibilities in our BPO Company. Our employees understand the industry that we are in and use the trends to ensure that we are able to achieve all our goals and objectives.

Finally, we will ensure that our employees are well paid and have the best welfare packages as compared to others in similar start-ups in the same industry.

We will ensure that our employees work in a safe and conducive environment. Our employees will also undergo continuous trainings that will further enhance their skills and also boost productivity for our company and boost the bottom line of our business and allow us grow.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Citotech BPO LLC is established with the sole intention of generating revenue and maximizing profit here in the United States of America. We intend to offer all our clients various services that will bring in this revenue to ensure the sustainability of our business. We therefore intend to generate revenue for our BPO Company via offering the following services;

10. Sales Forecast

The BPO industry is one that is regarded as saturated but regardless of this fact the industry is still has several services that has kept the industry stable and can allow for the influx of more businesses.

We are located in a strategic location here in Houston – Texas which has made it quite possible for us to be optimistic about the revenue we will generate from our BPO Company. We are quite sure that the profits that we will generate from our business will sustain and allow us grow our business within a year of starting and running our operations.

We conducted a thorough evaluation of the BPO industry here in the United States of America that would allow us carry out an accurate sales projection.

The analysis of the sales projections we conducted were gotten from data and information from similar startups that were not only based here in Houston – Texas but all over the United States of America as well. Below is the sales projections that was conducted for Citotech BPO LLC;

• First Fiscal Year-: $350,000
• Second Fiscal Year-: $700,000
• Third Fiscal Year-: $1,400,000

N.B : We conducted the above sales projections based on several assumptions and information that were gotten from start-ups here in Texas and the United States of America. Some of the assumptions we used were that the economy would be stable enough and that there would not be an arrival of a major competitor.

It should however be noted that should there be a change in any of the assumptions, it would have a negative or positive impact on the projected figures.

• Marketing Strategy and Sales Strategy

Every business no matter its level requires marketing in order to thrive and this is why we have set aside a budget for marketing our company.

Marketing is vital for the growth of any business because not only does it generate revenue and boost a company’s growth, it also allows the companies generate interest and increase awareness amongst its target market. The marketing strategies we would draft for our BPO Company are ones that would allow us penetrate the target market and gain a huge share.

Before drafting our marketing strategies, we will conduct a thorough marketing survey using accurate data that will allow us understand our target market and create effective marketing strategies.

We will leverage on conventional and unconventional means of marketing our brand to all our existing and potential customers. These marketing strategies we will create will allow us have a marketing budget that we will channel to the right use.

We intend to hire the services of a reputable marketing consultancy firm here in Texas who has the experience that would be needed to move our BPO Company to the level that we want it to be and also allow us effectively compete with our competitors.

The marketing consultancy firm we have engaged will help us draft the right strategies that would be of great benefit to our business and allow us generate the revenue that would boost our business. We have also empowered our marketing executives to also draft the right strategies that should be in line with our corporate policies and goals.

They will modify or remove ineffective strategies so that we don’t waste money using the wrong channels to market our BPO Company. Therefore, the marketing strategies that we would adopt in generating revenue for Citotech BPO Company are;

• Ensure that we place adverts in local and national newspapers, magazines as well as on radio and television stations
• Empower our marketing executives to engage in direct marketing
• Formally introduce our BPO Company to organizations and other stakeholders in the industry as well as in the United States of America
• Throw an opening party that will generate interest and create awareness for our BPO Company
• Ensure that our business is listed in online and offline directories
• Use social media platforms such as Facebook, Twitter and Google Plus in order to market our BPO Company

11. Publicity and Advertising Strategy

Once a business has been set up, it is important that the business is promoted vigorously. Promoting a business is very important as this is the way that not only awareness is created for the business but also revenue is generated from the exposure as well.

The BPO industry which is already termed as a saturated market, will require intense publicity if it intends to stand out from others and generate revenue.

To ensure that we create the right strategies for our BPO Company, we intend to hire the services of a reputable brand consulting company who have had several years of experience in branding companies in this industry and who would know what strategies would be right for our business and promote us positively to our clients.

We will ensure that the crafted strategies will be one that will not only communicate our brand but will also allow our brand stand out. Below are some of the publicity and advertising strategies we intend to use in promoting Citotech BPO LLC;

• Create a website that is professional and explains what we will be offering our clients
• Use social media platforms such as Facebook, Twitter and Google Plus to our advantage by posting updates with special information weekly
• Throw quarterly contests and special offers an use hash tags to make sure our brand trends
• Attend trade shows and events in order to network, know about new technologies and participate I workshops and presentations that would bring new ideas
• Join relevant associations in order to have valuable information on industry trends and allow others know about our progress
• Install billboards in various strategic locations all around Texas

12. Our Pricing Strategy

Due to the fact that we would be offering a service, it might not be so easy to determine how to rightly charge our clients especially as we would be offering various other services in addition to our core service.

We however will deploy the following strategy that will allow us determine what factors we would use in determining the right rates for our clients. Some of the factors we would use are cost of leasing the facility, power costs, property taxes and what our nearby competitors are offering.

However, since we are relatively new to the market, we intend to start off with lowering our rates for at least two months in order to increase awareness about our business and also attract the needed clients to our business. Lowering our rates for the first two months will also allow us gain a sizeable share of our target market.

After a careful study of our proposed discounted rates, we have found that even though our revenue might be low during this period, we would not be running at a loss in any way.

• Payment Options

Due to the various services that we will offer at Citotech BPO LLC, we will offer different payment services that will suit the different business preferences of our customers. Our payment options will be made to be convenient for our various clients. Therefore, the payment options that we will make available to our different clients are;

• Payment via check
• Payment via online payment portal
• Payment by bank transfer

The above payment options which were carefully chosen by us will work without any sort of hitches for our clients and will also be very convenient for our business as well.

13. Startup Expenditure (Budget)

In order to set-up and run a standard business process outsourcing company, one would require all the equipment that will used to be genuine and be of a high quality so as to be able to withstand the heavy workload that they would be required to carry out.

The bulk of the things that the generated capital would be used on asides from procuring equipment are, leasing and renovation of a facility, paying the salaries of employees and utility bills for at least six months, and ensuring that there is sufficient power.

Therefore the key areas where we intend to spend our start-up capital on are;

• Total fee for registering Citotech BPO LLC in the United States of America – $750
• Obtaining of licenses, local permits, legal services as well as accounting and browser-based call center software – $1,250
• Insurance policy (general liability, equipment insurance, property insurance and workers’ compensation) – $3,000
• Cost of hiring a business consultant – $2,000
• Leasing and renovating a 20-seater facility for use for at least a year – $20,000
• Operational cost for the first 6 months (salaries of employees and payment of utility bills) – $200,000
• Other start-up expenses which includes (workstations, computers, telephone, office furniture, ventilation, lighting, secure internet) – $25,000
• Cost of purchasing office supplies (staplers, folders, paperclips, pens, paper, ink and pencils) – $5,000
• Marketing promotion expenses (general marketing expenses and promotion activities for grand opening ceremony) – $5,000
• Cost of purchasing an official vehicle – $30,000
• Cost of launching a website – $1,000
• Cost of throwing a grand opening party – $5,000
• Miscellaneous – $12,000

From the above analysis, we would need an estimate of $310,000 to be able to start and successfully set up a BPO company here in Houston – Texas.

It should be noted that the above capital stated will be used to pay the salaries of employees and utility bills such as electricity and water for at most 6 months. We will also use part of the capital to lease and renovate a 20-seater facility as well as procure the equipment that will be used.

Generating Funding / Startup Capital for Citotech BPO Business

Citotech BPO LLC, is a business outsourcing company that is owned by Steve McMahon, a prominent business man and property developer, who has several businesses both here in Texas and all around the United States of America. Steve will not be seeking for external investors for his business and so will likely limit his sourcing of income to just two avenues;

The two different areas where Steve McMahon intends to generate capital from are;

• Generate 40% of capital from sale of some his stock
• Approach the bank to loan 60% of the capital

N.B : Steve sold some of his personal stock for $124,000 in order to generate the first capital for his business. He approached the bank in request for the sum of $186,000 so as to be able to kick-start his business.

The loan will be repaid in 7 years at the rate of 3% per annum and has already been approved by the management of the bank. All necessary papers have been signed and the Citotech BPO LLC’s account will be credited by the end of the week.

14. Sustainability and Expansion Strategy

In order to ensure that we grow our business to an enviable level, we intend to focus on several strategies that would allow us not only thrive but also excel as well. Some of the factors that we intend to focus on are; building a strong business structure, retaining a high rate of our loyal customers and also reinvesting in our business in order to ensure that we remain for as long as we should.

Building a business structure is very vital because not only will it allow us to start and run our BPO company with as few hitches as possible, it also enable us to be able to focus on our core service and achieve our goals more quickly.

We will hire qualified and highly competent employees that do not only have the necessary experience but also are aligned to our core values and are committed to ensuring that we are able to grow from a start-up to becoming a national force that is able to compete favorably with our competitors.

We will ensure that our employees are well trained so that their skills will not only be enhanced but will also ensure that the productivity of our company are enhanced.

We will also ensure that our employees are well paid and have a great welfare package that is better than their counterparts in similar start-ups such as ours. We will also ensure that the environment we will use for our employees is conducive.

We will ensure that we retain a high level of our clients because we know how valuable our clients are to us. Our aim is to ensure that we not only meet with our clients’ expectations but also surpassing them as well. We will offer our customers high quality service that is commensurate with our core policies.

We will ensure that all our loyal customers are rewarded with incentives every once in a while. We also intend to offer contests and other attractive programs in a bid to attract new customers to patronizing our services.

For our business to grow to an enviable standard, we will re-invest 25% of our profits back into the business. This is to ensure that we have a solid bottom line and that our BPO Company is able to run itself without having to sources for funding externally all the time. We intend to focus on these three factors as we believe that we would be able to suitably sustain and grow our business.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of trucks: Completed

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How To Build An Outsourcing Strategy In 5 Steps + Examples

Businesses are in a never-ending race, trying to stay ahead of the competition, catch the latest market trends, and keep the cash flowing – all happening at once. While you strive to keep up with the business’s growing demands, there are a truckload of challenges staring you in the face. You have a great team but you also need the collective power of specialized talents from around the globe. This is where a great outsourcing strategy comes in handy.

Outsourcing is promising but it can actually get pretty tricky. Making sure you get the results you're aiming for while working with outsourcing companies depends on really knowing what's possible and what's not. You need to have a clear understanding of what tasks still belong to you and which ones you should delegate to them.

If you are new to this concept and looking to get your hands on it, our article is just what you need. Here, we will help you sculpt a great outsourcing strategy that is a sure-shot route to boost your company’s productivity and raise that ROI graph. Global talent awaits you. 

What Is An Outsourcing Strategy: A Quick Refresher

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An outsourcing strategy is a detailed plan to get some of your work done through partnering with external individuals or companies . Instead of doing everything in-house, you decide what business processes could be done more efficiently by others who specialize in those areas. These tasks might not be your expertise but are crucial for your business.

Imagine you are running a startup and have many things on your plate – from product development to marketing, customer service to financial management. It's a whirlwind of tasks and you're just one person. Here’s when you need to turn to strong outsourcing strategies !

A strategic outsourcing strategy is all about flexibility. It's not an all-or-nothing deal. You can outsource specific tasks or entire functions , depending on what makes sense for your business. 

When you outsource, you tap into expertise that might not be available in-house which gives you a competitive advantage over others. It is cost-effective too. Instead of hiring full-time employees for every role, you pay for the services you need when you need them.

5 Steps For Creating A Successful Outsourcing Strategy

We prepared a comprehensive guide that is a one-stop shop for all things outsourcing. It condenses all the important steps into a neat package and everything you need is right in there. So let’s take a detailed look at it.

Step 1: Define Your Goals & Needs

Before you start, get your ducks in a row. By ducks, we mean your business goals, needs, and even a few limitations. This step will set the coordinates for your outsourcing process and a whole lot of your success depends on how well you execute this one.

1.1. Assess Internal Capabilities & Limitations

Take a good, honest look at your in-house capabilities . What are you really good at? What could use a little boost? Maybe you've got an excellent marketing team but struggle to keep up with customer service operations. Identifying these strengths and weaknesses will help you target the right processes for outsourcing.

1.2. Assess Current Business Operations & Challenges

Now it's time for a bit of self-reflection. What are the pain points in your current business operations? Is there a specific process that seems to slow everything down? Pinpoint these bottlenecks – they're prime candidates for outsourcing.

Get down to the brass tacks. Take that list of operational pain points and start breaking them into smaller tasks or processes . Think about what tasks could be handled just as well or even better by an external outsourcing services provider. It could be data entry, payroll, IT support – you name it.

1.3. Set Clear Goals & Expectations

Outsourcing for the sake of outsourcing? That's not what we're aiming for. Set clear, measurable goals . Do you want to reduce response time in customer support by 30%? Cut down on software development costs by 20%? These goals give your outsourcing strategy direction and meaning .

1.4. Set Budget

Figure out how much you're willing to invest in this outsourcing venture. You don't want to be in over your head but you also want to have enough to make a meaningful impact . So tally up those dollars and cents and make sure you're not breaking the bank.

1.5. Create A Detailed Outsourcing Plan

Create a detailed outsourcing plan that provides instructions for your business strategy and operations . This plan spells out everything from A to Z. Clearly define the scope of the tasks you're outsourcing. Are you handing over just a slice of the pie or the whole thing? 

Outline the deliverables – what's the quality and quantity you're expecting? Set a realistic timeline – business process outsourcing isn't magic; it takes time to set up and get the gears turning. This document will not only prove handy for your current needs but also provide a roadmap for future outsourcing contracts.

Step 2: Choose The Right Outsourcing Model

Having the right outsourcing model can directly impact your operations, efficiency, and ultimately, your profits. Different models offer different benefits . All you have to do is to dig a bit deeper into each model and then match them with the goals you set in the first step.

Let’s make it easy for you. We’ll discuss 3 major outsourcing models to give you a clear picture of what each has to offer and figure out the perfect match.

2.1. Onshore Outsourcing

Imagine you're sitting in your office, sipping on your favorite coffee blend and discussing business strategies with a team that's located, well, across the town. That's onshore outsourcing for you. This approach involves partnering with outsourcing companies within your own country . No time zone issues, no language barriers, and you're still benefiting from external expertise.

When To Consider Onshore

• If the nature of your business requires compliance with strict regulations that are specific to your country.
• If communication barriers are a major concern and you prefer a shared language and cultural understanding.
• If you want to keep a close eye on your outsourced team and collaborate in real-time without worrying about time differences.

2.2. Offshore Outsourcing

Offshore outsourcing is partnering with a service provider in a different country, often one with a lower cost of living . This can save you big while still accessing the best talent . Think of it as expanding your team's reach to a global scale. Yes, you might have to deal with time zone challenges and perhaps some language nuances but the potential benefits can be substantial.

When To Consider Offshore

• If your business operates in multiple time zones and requires round-the-clock productivity.
• If you're in a market where specific skills are scarce locally but you can find qualified professionals elsewhere.
• If you're looking to cut costs while maintaining quality as labor expenses will be lower in the outsourcing destination.

2.3. Nearshore Outsourcing

Now let's find the middle ground. Nearshore outsourcing is when you collaborate with a service provider in a neighboring or nearby country. This gives you a balance between proximity and cost-effectiveness . While there might still be some time zone differences and potentially slight language variations, they are usually easier to manage compared to offshore outsourcing.

When To Consider Nearshore

• If you want to explore new markets or extend your business reach to adjacent regions.
• If you're looking to hire talent that has similar skill sets and cultural understanding because of geographic proximity.
• If you want a balance between cost savings and close collaboration without the extreme time zone differences of offshore outsourcing.

Step 3: Select The Right Outsourcing Partner

Selecting the right outsourcing partner is about more than just checking boxes. It's about finding someone who complements your internal business processes , understands your company culture, and can help you optimize those processes. 

Here’s how you can make sure that you're picking a partner that's a good fit for the long run.

3.1. Researching Potential Outsourcing Providers

Start by looking into different outsourcing firms or third-party companies that specialize in the services you're looking to outsource. Check out the online platforms, industry forums, and directories. Google is your gateway but Catena, Upwork, and Freelancer are the ones that you should consider first.

The power of word-of-mouth is unmatched. Reach out to your professional network – colleagues, mentors, peers – and ask for recommendations. This initial phase is all about casting a wide net. The larger your candidate pool, the more informed your decision will be later on.

3.2. Evaluating Expertise, Experience, & References

Now that you have a list of potential partners, it's time to dig deeper. Look into their expertise and experience . Have they been in the business long enough to understand the ins and outs of the processes you're looking to outsource? Check out their track record – successful projects, satisfied clients, and maybe even awards or recognition in their field.

References are golden. Reach out to companies who've worked with your potential outsourcing partners before . Ask them about their experiences – the good, the bad, and the surprising. It will tell you what you are signing up for.

3.3. Ensuring Cultural Compatibility & Communication Capabilities

Remember, you're not just outsourcing tasks – you're partnering with another company. This means your cultures need to gel well. Look into the values, work ethics, and business practices of the potential outsourcing company . If your company is all about innovation and quick decision-making, partnering with an overly bureaucratic firm will be a mismatch.

Make sure the potential outsourcing provider can communicate effectively and clearly. You don't want misunderstandings and miscommunications causing hiccups in your projects. Don't be afraid to test their communication skills during your interactions – it's a litmus test for how well you'll work together when the real projects start.

Step 4: Implement & Manage The Outsourcing Strategy

This step is where your well-thought-out plan starts taking shape in the real world. It's about blending the outsourcing company smoothly into your existing ecosystem. Let's break it down into 3 important sub-steps:

4.1. Ensure Knowledge Transfer & Training

Identify what knowledge is critical for them. This could range from understanding your company's culture and values to specific project-related details.

Create detailed training materials, conduct workshops, or even arrange shadowing sessions where your in-house experts work side by side with the outsourced team . Encourage an interactive learning environment where questions are welcomed and clarifications are made.

4.2. Set Up Necessary Infrastructure & Tools

Identify the tools and software your outsourced team will need. This could be:

• Data-sharing tools like Google Drive and Dropbox
• Project management software like Trello , Asana , or Jira
• Communication platforms like Slack and Microsoft Teams

Keep these tools and software updated to ensure they stay effective and secure. Regularly assess whether they're meeting the needs of both your in-house and outsourced teams.

Consider data security too – establish access controls to protect sensitive information while ensuring that the outsourced team can collaborate effectively.

4.3. Ensure Alignment Between In-House Teams & Outsourced Partners

Set up regular meetings to discuss progress, challenges, and goals. Create channels for instant communication – whether it's email, messaging apps, or video conferencing platforms. Define roles and responsibilities clearly to avoid confusion.

Alignment isn't just about task coordination; it's about shared objectives and understanding. Help both your in-house and outsourced teams see the bigger picture and how their efforts contribute to the overall success of the company.

Step 5: Monitor, Evaluate, & Optimize

This step is where we roll up our sleeves and make sure that our outsourcing efforts are not only paying off but also continuously improving. Let’s discuss how you can achieve this. 

5.1. Establish Performance Metrics & KPIs

To truly gauge the effectiveness of your outsourcing strategy, you need to have performance metrics and KPIs in place that tell you how well things are going. For instance, if you outsource your customer support, your KPIs should include response time, customer satisfaction ratings, and resolution rates. 

If it's about software development, you should track project completion time, bug fix rates, and code quality. The idea is to align these metrics with your initial objectives so that you have a clear picture of whether you're getting the outcomes you wanted.

5.2. Regularly Trace & Assess Outcomes

It's not a "set it and forget it" deal. You should regularly track and assess how things are unfolding. This could be as simple as weekly or monthly reviews , depending on the nature of your outsourcing engagement. When you compare actual performance against your established metrics and KPIs, you can identify trends, spot any deviations, and understand whether you're meeting your goals.

These assessments are also a chance to have open communication with your outsourcing partner . Discuss what's working well, areas that need improvement, and any changes in your business environment that might impact the outsourcing arrangement.

5.3. Address Any Issues Or Deviations Promptly

In the world of outsourcing, as in life, things might not always go as planned and that's okay. The key here is to tackle issues head-on and as soon as they arise . If you notice a dip in performance or a deviation from the agreed-upon standards, don't wait around hoping it will magically improve.

‍ Reach out to your outsourcing partner , share your concerns, and work together to find solutions. The sooner you address these issues, the smoother your outsourcing journey will be. Remember, it's a partnership and both sides should be invested in making it work.

5.4. Continuously Optimize The Outsourcing Strategy

Your outsourcing strategy isn't etched in stone. It's a dynamic process that should evolve based on your experiences and changing business landscape. Analyze the data and insights you have collected to identify areas where you can do even better.

This could mean tweaking your processes, adjusting your KPIs, exploring new technologies, or even rethinking the scope of your outsourcing. The idea is to never settle for "good enough." Strive for excellence and be open to innovation and adaptation.

11 Examples Of Having The Right Outsourcing Strategy In Place

Let's discuss 11 examples that show how having the right outsourcing strategy can help companies optimize business processes.

I. IT Services

Imagine a startup that needs to maintain its complex IT infrastructure. Instead of hiring a full in-house IT team, they outsource their IT services to a specialized firm . This way, they can tap into the expertise of professionals who specialize in IT maintenance while also reducing the costs associated with hiring and training large IT staff.

II. Customer Support

Many large corporations outsource their customer support to call centers in different countries. This not only reduces labor costs but also provides 24/7 customer service coverage because of time zone differences. This gives them a dedicated team available to address customer queries and concerns around the clock.

III. Manufacturing

Think about a fashion brand that designs clothing but doesn't own its own production facilities. Instead, they outsource the manufacturing process to third-party factories. This lets the brand focus on design and marketing while the manufacturing experts handle the actual production efficiently.

IV. Content Creation

Let's say a marketing agency needs a constant stream of blog posts and social media content. Instead of hiring multiple full-time writers, they outsource content creation to freelance writers or specialized content virtual assistants. This way, they get diverse perspectives and a steady flow of content without the overhead of hiring additional staff.

V. Payroll Processing

Consider a medium-sized business with a complex payroll structure. Rather than handling complex tax regulations themselves, they can hire a virtual assistant. This guarantees timely and accurate payments to employees without getting entangled in payroll calculations.

VI. Data Entry & Management

Picture a company dealing with heaps of customer data that needs organization. They can outsource data entry and management tasks. A data entry virtual assistant can ensure that information is organized and easily accessible without overloading the in-house team.

VII. Research & Development

Even big corporations sometimes outsource parts of their research and development projects. Let's say a pharmaceutical company wants to explore a new drug molecule. They collaborate with external research institutions to leverage their expertise in a specific area while sharing the risks and costs of development.

VIII. Human Resources (HR)

Many companies, especially small businesses, outsource their HR functions. This includes tasks like recruitment, payroll processing, and employee benefits management. It's like having an HR department on call, minus the HR department setup costs.

IX. Bookkeeping & Accounting

Think about a small business owner who isn't exactly a numbers guru. They can outsource their bookkeeping and accounting tasks to professionals. This way, they're not stuck deciphering spreadsheets and they ensure their financial records are accurate and tax-compliant.

X. Market Research

A marketing team is launching a new product. Rather than diverting their energy into extensive market research, they can hire a research virtual assistant. This way, they get valuable insights into consumer preferences and trends without taking focus away from product development.

XI. Administrative Tasks

Let's consider a founder of a Fintech startup. This founder has an incredibly demanding schedule. To share some of his workload, the founder decides to outsource tasks to an executive assistant . The assistant takes charge of the CEO's calendar , scheduling meetings, conferences, and appointments in a way that maximizes efficiency and minimizes conflicts.

Why You Should Make Catena A Part Of Your Outsourcing Strategy?

At Catena , we understand that startups are all about juggling a thousand things at once – from refining your product to managing your team and keeping the ship sailing smoothly. Our executive assistants know this all too well and are trained to take charge from the word go. 

When we say we hire the top 1% of talent, we really mean it. Our rigorous selection process ensures that only the most skilled and dedicated EAs join our team. With over 100 CEOs served , our executive assistants have handled the chaos of board meetings and event planning and mastered the art of keeping CEOs on top of their game . 

Our executive assistants are from the Philippines so they naturally possess strong work ethics and excellent English language skills. Hiring an executive assistant through Catena isn't just about saving dollars; it's about smart spending. You get expert assistance at a fraction of the cost of hiring an in-house resource. How? We tap into the brilliance of university graduates who bring their A-game without breaking the bank.

A great outsourcing strategy gives you a way out of ineffective sticky situations by cutting costs, increasing efficiency, and accomplishing specialized tasks. But there are certain preliminaries you should follow – internal readiness assessments to ensure that it will benefit your organization in many ways. 

That's where we come in. At Catena, we understand that outsourcing isn't just a buzzword; it's a strategic move that needs careful planning. Our team specializes in finding the perfect executive assistants who can seamlessly join your efforts and supercharge your operations.

Ready to dive in? Let's have a chat and figure out how Catena's executive assistants can be the magic ingredient that takes your outsourcing strategy to the next level. Book a consultation today and explore the possibilities.

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Sample Outsourcing Business Plan

Here is a business plan for starting an outsourcing business.

Like most new businesses, launching an outsourcing business will present a lot of challenges. Being able to overcome them is where most entrepreneurs find deep satisfaction.

The process begins with writing an outsourcing business plan.

This requires a lot of considerations and deliberations with the end goal being to create a well-written plan that’s easily implementable.

OUTSOURCING BUSINESS PLAN SAMPLE

For many business owners, the need to get or attract funding is primary. With a good plan, that is very achievable. Basically, your outsourcing business plan helps reveal the viability of your business idea.

More importantly, your plan serves as a tool to implement your business strategies and also monitor its growth.

Key Sections you must include in your Plan

In a bid to create a great plan, certain points or sections need to be covered. These serve as a framework around which the entire plan is developed.

They include the executive summary section, company or business description, products & services section, as well as the market analysis section.

There are other equally important sections like the strategy & implementation, organization & management, as well as financial plan & projection sections.

With all of these combined, you have an easily implementable sound plan. But what’s contained in these sections? Let’s find out.

i. Executive Summary

This is the first section of the plan in order of arrangement. It’s the section potential investors will want to see before anything else.

It’s called the executive section because it provides a brief overview of your outsourcing business plan. In other words, this section can be referred to as the condensed version of your business plan.

As expected, the executive summary section should be highly summarized with main points such as your outsourcing business name and location, the products and services on offer, mission & vision statements, as well as the specific purpose of the plan.

Let’s discuss these points in brief.

Business Name & Location

You’re expected to have figured out a befitting name for your outsourcing business before writing your plan.

As part of the introduction, a location must also be provided. All of these provide a starting point for readers to follow and to understand more about your business idea.

Products & Services

What type of services and products do you intend on providing?

This is a key detail of your business plan investors will be interested in. Because this is the executive summary section, it’s necessary to avoid getting into all the details as there’s a whole section for it in the main plan.

Mission & Vision Statements

The mission statement for your outsourcing business should clearly state the goal you plan on achieving as a business. In other words, it articulates your business’ purpose by stating the why.

For the vision statement, the current and future objectives of your outsourcing business are brought to the fore.

In basic terms, your vision statement should embody your dream for the business and adopts a long-term perspective.

Specific Purpose of the Plan

Without a specific purpose, your business plan will be deficient.

What do you want your outsourcing business plan to achieve? For some entrepreneurs, the purpose might mainly be for strategic planning while for others, it might be to attract investments or other reasons.

State your purpose for having the plan.

ii. Company Description

A broad look at your business operations is necessary with key areas to be looked at like short and long-term goals as well as how you intend to make a profit.

This detail among several is important to investors. Also, the legal structure you’ll be adopting is important. What more? The company description will require adding a summary of your business’ growth.

Financial or market highlights will need to be part of the details to be added here. Provide a brief history of your outsourcing business as well as the problems you intend to solve through your services and products.

Who are your target clients? Will you be working with suppliers? Include such details included here.

iii. Products & Services

Anyone in the dark about the services and products your business will be about should be enlightened by the information they get from this section.

This will require a detailed description of your services with the main emphasis being customer satisfaction.

If ongoing research and development activities are leading to the development of newer products, such should information should be included here.

What advantage(s) does your outsourcing business have over its competitors?

iv. Market Analysis

An in-depth marketing analysis is required to gain a better understanding of the business.

With such knowledge, you’re able to demonstrate that to your audience by covering key areas of operation such as providing a sketch of your target market segments with demographics where necessary.

To measure up, you’ll need to assess how you stand relative to your competitors by identifying their strengths and weaknesses.

You should also be able to provide marketing data on historical, current, and projected operations through an in-depth analysis of the market.

v. Strategy & Implementation

Marketing and sales are primary determinants of growth for any business.

With the help of an operating plan, provide cost and pricing details of services and products as well as any promotions you intend on embarking.

You want to also state how you intend to reach your target audience and capture a fair share of the market.

vi. Organization & Management

A competent organization and management team must be in place to aid with the smooth running of your outsourcing business.

Under this section, provide an organizational chart that clearly identifies and describes key employees and the departments they occupy.

Who is/are the business owner(s)? You’ll need to go into more detail by providing names, percentage ownership, and level of involvement in the business.

Moving from the business owners, provide the profiles of your management team members.

vii. Financial Plan & Projection

It’s always advisable to seek professional help when putting the financial plan together. This won’t be necessary if you’ve got great accounting skills.

Otherwise, have an accountant help out with details such as the historical financial data, as well as having realistic prospective financial information.

With these sections carefully written and included in your plan, you should be ready to proceed with implementation. You also get the added benefit of attracting funding for your outsourcing business.

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IT Services Business Plan Template

Written by Dave Lavinsky

IT Services Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their IT companies.

If you’re unfamiliar with creating an IT business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an IT business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an IT Services Business Plan?

A business plan provides a snapshot of your IT business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for IT Company

If you’re looking to start an IT business or grow your existing IT company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your IT business to improve your chances of success. Your IT business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for IT Businesses

With regards to funding, the main sources of funding for an IT business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for IT companies.

Finish Your Business Plan Today!

How to write a business plan for an it services business.

If you want to start an IT business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your IT business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of IT business you are running and the status. For example, are you a startup, do you have an IT business that you would like to grow, or are you operating a chain of IT businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the IT industry.
• Discuss the type of IT business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of IT business you are operating.

For example, you might specialize in one of the following types of IT businesses:

• Computer repair: This type of IT business provides computer maintenance and repair services.
• Computer training: This type of IT professional specializes in teaching others how to use computers as well as various software and computer programs.
• IT support: This type of IT professional provides services for businesses such as setting up a network, backing up data, and systems management.
• Cloud computing: This type of IT specialist helps individuals and businesses establish cloud platforms and tools, or may help to migrate their information to the cloud.

In addition to explaining the type of IT business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of new clients served, the number of repeat clients, reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the IT industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the IT industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your IT business plan:

• How big is the IT industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your IT business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your IT business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of IT business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other IT businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of IT consultants, in-house IT support, or do-it-yourself IT tutorials. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of IT business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for clients to acquire your product or service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an IT business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of IT company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide cloud computing, data center management, or network setup services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your IT company. Document where your company is situated and mention how the site will impact your success. For example, is your IT business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your IT marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your IT business, including answering calls, meeting with new clients, billing and collecting payments from clients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your IT business to a new city.

Management Team

To demonstrate your IT business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing IT businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an IT business or successfully running a small IT consulting service.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you charge your clients an hourly rate of $250 per hour, and will you work 5 hours per day? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your IT business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an IT business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of your IT credentials.

Writing a business plan for your IT business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert on IT business planning. You will understand the IT industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful IT business.

IT Business Plan FAQs

What is the easiest way to complete my it services business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your IT services business plan.

How Do You Start an IT Services Business?

Starting an IT business is easy with these 14 steps:

• Choose the Name for Your IT Business
• Create Your IT Business Plan
• Choose the Legal Structure for Your IT Business
• Secure Startup Funding for Your IT Business (If Needed)
• Secure a Location for Your Business
• Register Your [Sector] Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your IT Business
• Buy or Lease the Right IT Business Equipment
• Develop Your IT Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your IT Business
• Open for Business

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan services can give you a winning business plan.  

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6 Steps for Building a Successful Outsourcing Strategy

• April 15, 2023
• In Business , Talent , Staffing & Hiring

Software development firms and business IT departments increasingly rely on technical staffing services to help run their businesses to offset mounting costs, or pull in outside engineering talent. Small to midsize US-based businesses are especially well positioned in terms of their market position to take advantage of the benefits that come from outsourcing. By understanding how to implement different outsourcing models when required, companies can rein in their HR budgets, while gaining access to skilled technical labor when that labor is needed most (e.g. on a tight deadline, or to fill in-house skills gaps).

BXGI believes that in order to get the most for our clients, it’s essential a firm knows how to build a successful outsourcing strategy. By laying out a detailed blueprint of how to approach outsourcing ahead of time, a company can ensure that it’s day-to-day work schedule continues to run as smoothly as possible as augmented staff integrate with internal creative or development teams. Over the years, BXGI has worked with a variety of clients, and discovered that when a business adopts a comprehensive outsourcing approach from the onset, vendors can better manage and maintain exceptionally high service quality, while keeping clients’ expenditures as low as possible.

Here are 6 crucial steps to building an effective outsourcing strategy:

1. Outline Detailed Outsourcing Goals

A company that clearly defines its outsourcing goals early on is already one step ahead of the competition. Firms that carefully outline their outsourcing objectives, step-by-step, will be in a better position to select the right staff augmentation model for their particular industry than companies that pay less attention to these steps, because they’ve taken the time to understand the pros and cons of outsourcing.

Another advantage of defining crystal clear outsourcing goals is the opportunity to take stock of a company’s actual outsourcing needs. While staff augmentation comes with many positives, there are some downsides as well, which could mean outsourcing might not be the best staffing approach for a particular business during a certain period of time. But when a gaming or software development firm is preparing for a next phase in product development, or launching several new projects that exceed the ability of their current employees to handle, or require outside technical or creative expertise, staff augmentation agencies can help provide a company with the skilled professionals it needs.

By establishing well-defined outsourcing goals early on, a firm can utilize IT staffing in the most effectual manner possible — hopefully increasing productivity, while saving money at the same time, by scaling up or scaling down supplemental staff as business or budgetary concerns dictate.

2. Budget for the Expected and Unexpected

According to Statista, which specializes in market and consumer data, information technology outsourcing (ITO) hit $62 billion in 2018 (business process outsourcing, or BPO, reached almost $24 billion). And while the size of the IT outsourcing market will likely fluctuate over the next few years due to changes in the global economy, as well as due to companies cutting costs by moving less critical IT services over to cloud computing environments , operational managers still need to budget for different business scenarios that come from working with a staff augmentation model.

When mapping out monthly, quarterly and annual budgets, companies need to take into account their present staff augmentation needs, while factoring in how augmentation can help reduce their overall personnel budgets, if and when properly implemented. But they’ll also need to budget for the unexpected, such as unforeseen employee turnover, or a new contract that requires more skilled labor than is currently on staff.

Managers often cite “hidden costs” as one of the primary reasons why outsourcing endeavors can fall short of initial expectations. A reputable IT staffing firm can help a company validate its supplemental staffing plan, finding the right balance between affordability and expected results, while also identifying possible hidden costs, giving the client the ability to quickly increase or decrease supplemental staff when needed, or on short notice, without breaking the bank.

3. Choose the Right Outsourcing Engagement Model

When building a compressive outsourcing strategy, HR executives should prioritize the specialized skills they’re searching for, and why. By clearly defining the technical or creative expertise they need to add, it becomes easier for managerial teams to choose an outsourcing engagement model that matches their specific staffing requirements.

There are a variety of outsourcing models to choose from, including onsite, onshore, nearshore and offshore engagement models, all of which come with different benefits and risks. A company looking to offload noncritical technical operations would likely be interested in a different type of outsourcing model than a software firm on the hunt for an exceptionally rare programing skill, which would differ still from the model a gaming studio would select to fill a few in-house skills gaps on a short-term basis. By choosing the right outsourcing engagement model — in consultation with an experienced technical staffing firm — from the beginning, businesses can put supplemental staff to work as quickly and efficiently as possible, without wasting time or resources, or cutting down on productivity for any significant amount of time.

4. Mitigate Outsourcing Risks

While outsourcing comes with many benefits, it also carries with it some risks that need to be addressed (as we’ve already briefly covered). By understanding and mitigating these risks, companies can reduce their financial exposure, while increasing the efficiency of the outsourcing model they select. Here are four risks to pay particularly close attention to:

• Trust and Control: Managerial oversight is reduced when a company outsources, especially when choosing the onshore, nearshore or offshore models. HR directors can build trust by learning as much as they can about the IT staffing firm they’re working with, speaking with previous clients, and making sure they’re comfortable with their vendor’s outsourcing methodologies. These simple steps can help establish clear communications protocols, fostering a sense of cooperation and trust between a company and its vendor.
• Hidden Costs: As we’ve discussed, hidden costs, when it comes to outsourcing, can quickly lead to client dissatisfaction. When signing a contract with an IT staff augmentation agency, HR executives need to make sure their contracts clearly outline terms of payment, any lists of possible (and acceptable) supplementary charges, what services might incur additional charges, a ceiling to additional expenses, as well as a procedure for reviewing surcharges if and when those services/charges are actually needed.
• Quality Issues: In addition to a reduction or loss of operational control or oversight, outsourcing can also carry the risks of quality issues. These risks can be mitigated by working with vendors that have demonstrated a commitment to quality control with past clients and projects, and have a comprehensive process in place to quickly resolve any quality issues — onsite or offsite — with a creative or development project (employing augmented staff) should product or service quality issues arise.
• Confidentiality and Intellectual Property Rights: BXGI believes intellectual property is a serious matter. Rather than create any uncertainty over intellectual property issues (like copyrights, patents, or trade secrets) HR and legal executives might have concerning supplementary staff, BXGI safeguards against these issues by having all of our creative and technical talent sign exclusive work ownership agreements and NDAs. These contracts take our clients’ confidentiality concerns into account, while also protecting their intellectual property rights.

5. Actively Track Outsourcing Progress and Added Value

In order to monitor the advantages and disadvantages that come with outsourcing, it’s important a company or development team has some clear key performance indicators (KPIs) in place. These indicators can help executives decide if the particular staff augmentation model they’ve chosen is the right one for them. And while these performance indicators can vary widely, a reputable outsourcing vendor should be able to offer multiple indicators (assuming the client has already established clear outsourcing objectives), including, but not limited to: benchmark procedures for breaking down outsourcing costs versus supplemental staff job performance, measuring outsourcing expenditures against productivity, measuring the output and efficiency of different augmented teams against expected outcomes outlined in a service-level agreement (SLA) — and of course setting up the specific internal protocols designed to measure and report KPIs in the first place.

By measuring the benefits and progress (or lack of progress) of the outsourcing engagement model a company selects, corrective steps can be implemented if staffing expectations aren't being met. But if those predefined expectations are being met, actively tracking outsourcing benefits and progress can help strengthen the model being employed, thus contributing to continued outsourcing success.

6. Establish Strong Client/Vendor Communication Channels and Relationships

One of the most straightforward and obvious steps to outsourcing success is finding a technical staffing firm that can mesh with a client’s way of doing business. Corporate culture and communication protocols can vary extensively in the business world. Companies looking to hire augmented staff locally or remotely all want to work with technical staffing agencies that operate in a transparent, responsive manner, and that will address any outsourcing issues that may occur promptly and professionally.

An outsourcing vendor that takes the time to learn about a client’s internal business culture, and how it runs its engineering and creative teams, will be building the foundation to a relationship that fosters good communication. This close relationship, in turn, helps IT staffing firms provide the most appropriate company-specific staffing solutions they can, while remaining flexible enough (thanks to constant client/vendor communication) to predict and adjust to a company’s personnel needs down the road.

Companies that lay out a well-defined blueprint in terms of what they expect from their outsourcing agency, and are aware of the advantages and occasional disadvantages that come with outsourcing and staff augmentation (especially in relation to their specific industries), will be in a better position to optimize the advantages, while reducing any associated risks. By building a careful, detailed approach to outsourcing from the beginning of a project, managers will be setting up a clear path to creating a sustainable and successful outsourcing strategy, which will ultimately help them better meet their business goals.

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Outsourced Computer Support Business Plan

Start your own outsourced computer support business plan

Austin Kinetic

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Austin Kinetic is an information technology consulting firm serving the Austin Metro area with top quality engineers who have a keen interest in customer satisfaction.  The time is right for consulting companies to flourish.  With the recent gains in the stock market, capital is again becoming available for IT infrastructure improvements.  Austin Kinetic will position itself to win a good deal of that emerging business.  The company has been incorporated in Nevada and has acquired an operating permit for Texas.  Austin Kinetic anticipates an enviable cumulative net profit by the end of year three.

The Market Austin is known as “little Silicon valley” due to its high percentage of technology companies.  With its relatively low cost of living and ample space for expansion, Austin promises to be a strong market into the foreseeable future. There are currently over 7,000 companies that fit the aim of Austin Kinetic in the Austin Metro area, with only four major competitors.  This combination provides a rich opportunity, bolstered by the current up-turn in the area and national economy.

The Business Model Austin Kinetic will leverage the industry knowledge of its founding members to provide outstanding service to its customers.  The company will initially have as little overhead as possible with its founders working out of their own homes, using their own transportation means to reach clients.  The company will be developed with a “customer service and satisfaction first” mentality in an effort to build acceptance and a positive reputation in the local industry.

The Management Team In order for the company to be successful, Austin Kinetic must fully leverage the experience and insight of its management team, which includes Adam Authortisement, Bob Borgware, Cary Curry, Dean Dri, and Edgar Extension. The team has over forty-eight cumulative years of experience in service operations management and information technology support.  They currently hold multiple technology industry vendor certifications crossing several disciplines including both logical and physical network structure and management. Over the course of their careers, the team has served in various technical roles with Fortune 500 companies and has been successful in both large and small environments.

1.1 Objectives

Austin Kinetic’s objectives for the first five years:

• Establish and maintain at least twenty-four full time service contract customers.
• Establish an office in Austin, TX.
• Break the Big M revenue mark.

1.2 Mission

Austin Kinetic is an innovative business technology company that was founded on the belief that one company can make more than a difference, it can change the whole face of business as we know it.

1.3 Keys to Success

• Depth of knowledge.
• Breadth of ability.
• Development of a strong business relationship with customers to gain an understanding of their business and business needs.
• Ability to network in the industry.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Austin Kinetic is incorporated in Nevada with an operating office in Austin, Texas. Initial staff will consist of a small group of experienced computer engineers who’s skills and experience collectively cover a very broad segment of the open systems’ distributed client/server field. The company’s initial focus will be installation and configuration projects which will be developed into ongoing support contracts.

2.1 Company Ownership

Austin Kinetic is incorporated. The major share holders are Adam Authortisement, Bob Borgware, Cary Curry, Dean Dri, and Edgar Extension.

2.2 Start-up Summary

The start-up costs for the company are detailed in the table below, and will be funded by the founder’s personal funds. There will be only small initial equipment cost as the company will be greatly dependent upon its founders’ resources. It is expected that each employee will initially cover the cost of transportation, cell phone, and incidentals that arise in the course of due business. The company will begin covering those costs as revenue streams are generated. Specific guidelines and policies will be developed prior to the sixth operating month.

Austin Kinetic will offer several support options, including hourly support services, with the option to buy in blocks of 40 hours at a discounted rate.  Blocks purchased will be valid for 180 days from date of purchase.  Additionally, semi-annual service contracts will be available.  Contract pricing will be negotiated on a per-contract basis.

• Project work will be billed and estimated on a per-project basis.
• Web and ASP hosting will be billed on a per-system basis.

Operating systems supported (limited to current and three previous revisions): 

• Novell NetWare
• Red Hat Linux

Hardware supported (hardware configurations must be validated by OEM):

• All open desktop, server, storage, and network systems.
• Dell, ADIC, Storagetech, and HP tape drives and libraries.
• Additional hardware will have to be reviewed on a per-case basis.

Software packages supported (Restricted to implementation and initial configuration):

• Microsoft Exchange
• Lotus Notes/Domino
• SUS Messaging Center
• Microsoft SQL server
• Veritas Backup Exec / Net Backup
• Legato Networker
• Additional packages will have to be reviewed on a per-cases basis.

Service offerings: 

Austin Kinetic has several pre-set packages available for general monitoring of a customer’s network equipment and applications.  The packages are categorized by the type and use of equipment to be monitored. An initial one-time setup fee of $500 will be required per physical site at the onset of any service agreement. This amount is not affected by the number of systems to be monitored at the designated physical site. The customer will be required to provide Internet access to the monitoring server. Out-of-band notification can be added for an additional $50 per month plus a one-time, per-physical-site, $150 initial setup fee.

Basic Server Management*  $350 per month Austin Kinetic provides professional management of operating systems, including Windows, NetWare, Red Hat Linux, and Solaris. This service is perfect for companies that want to manage their own applications, but not deal with the ongoing hassle of tuning, securing, and maintaining the operating system. We will take the burden of ensuring you get the proper services for your specific server and operating system.

• A system audit to document your architecture and suggest improvements
• 24/7 technical support of the server and operating system from experienced engineers
• Security and bug patch notification for the operating system, and when approved, a service call will be scheduled for installation.*
• Monitoring the network availability of one IP.
• Monitoring the server’s disk usage, processor usage and load average
• Visibility into Austin Kinetic’s trouble ticket system via a secure portal

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Application Server Management Services*   $450 per month. Ensuring your applications are available and running at peak efficiency is a 24/7 responsibility. Austin Kinetic offers comprehensive application monitoring and management so your customers and employees will be able to use your applications without significant unscheduled interruption. We offer a complete range of management services tailored to remove the burden of ensuring your applications are up and getting the proper maintenance. 

• A system audit to document your architecture and suggest improvements 
• 24/7 technical support of the server, operating system and applications from experienced engineers 
• Security and bug patch notification for the operating system and applications, and when approved, installation
• Monitoring application and network availability
• Monitoring application response time
• Monitoring the server’s disk usage, processor usage, and load average
• Visibility into Austin Kinetic’s trouble ticket system via a secure portal 
• Periodic activity reports

* Except for the initial system audit, service time to repair or otherwise service the monitored system is not included in this monitoring agreement.

Database Server Management Services*  $500 per month. Ensuring your Oracle, MySQL, and MS SQL 2000 databases are configured and maintained properly is a time-consuming task for IT departments. Austin Kinetic can augment your internal skill set with comprehensive database server management. We offer a broad range of management services and will take the burden of ensuring you get the proper services for your specific server and databases. Typical database services offered by Austin Kinetic include:

• 24/7 technical support of the server, operating system and database from experienced engineers 
• Security and bug patch notification for the operating system and database, and when approved, installation 
• Monitoring database and network availability 
• Monitoring database response time 
• Monitoring the server’s disk usage, processor usage and load average 

Network Device Management Services*  $450 per month. Network devices – firewalls, load balancer, routers, switches and hubs – must be properly configured and maintained to ensure network security and reliable operation. Austin Kinetic offers a broad range of network management services and will take the burden of ensuring you get the proper services for your specific network.

• A network audit to document your topology and addressing scheme 
• 24/7 technical support of the network devices from experienced engineers
• Security and bug patch notification, and when approved, installation 
• Maintaining the security of firewalls 
• Monitoring bandwidth usage 
• Monitoring network device availability and performance 
• Visibility into Austin Kinetic’s trouble ticket system via a secure portal  

Benefits of Security Management Services (Priced determined on a per-site basis.) Maintaining the security of your Internet-based systems is more important and more time consuming that ever. Austin Kinetic removes the burden of protecting your systems by offering 24/7 security management that combines intrusion detection and vulnerability scanning. We also will not burden your existing hardware as a pre-configured 1U server is installed in your network to handle the intrusion detection and vulnerability task.

• Identify misconfigured firewalls
• Catch attacks that firewalls legitimately allow through (such as attacks against Web servers) 
• Document hacker attempts that fail 
• Watch for insider hacking 
• Identify users installing unsecured software on their machines 
• Recognize unauthorized machines using the network
• See incorrect IP space utilization

Austin Kinetic will ensure your intrusion detection and vulnerability scanning system is properly installed and maintained. This includes configuring the system, testing the pattern matching, updating scanning profiles, monitoring 24/7, reporting suspicious activities or vulnerability, and providing a monthly report.

Data Backup*   $50 plus a one-time setup fee of $150 per backup server. There will be an additional $100 per-site, per-month charge if tapes are required to be kept off-site.

Protecting your organization’s data is critical. Austin Kinetic will manage your data protection system to ensure that your data is protected by tape backup. While Austin Kinetic cannot be held responsible for lost data, we will ensure that validated and tested backups occur on a regularly scheduled basis. The customer will be responsible for procuring and installing the necessary hardware. Austin Kinetic will configure and monitor the backup software, monitor and test backup jobs, and perform needed file restoration.

* This service does not require the $500 site setup fee.

Market Analysis Summary how to do a market analysis for your business plan.">

The Information and Technology Service industry is expected to grow at 8.58% per year through 2010.     –U.S. Department of Labor (2003) http://www.bls.gov/iag/iag.services.htm

We will be primarily focusing on mid-sized companies with 500 or fewer employers.  These companies typically do not have large internal IT departments and could benefit the greatest from our offerings.

4.1 Market Segmentation

The information in the market analysis table gained from the U.S. Census Bureau, http://factfinder.census.gov/servlet/GQRGeoSearchByListServlet?ds_name=E9700A1.  Though the data is based upon 1997 data, it is representative of the local market’s potential.

4.2 Target Market Segment Strategy

Austin Kinetic is interested in servicing companies that are large enough to show direct P&L benefit from information technology investment, but not large enough to maintain their own permanent IT staff.  The business groups targeted in the market analysis table represent the largest groups in our target area that fit our interests.

4.3 Service Business Analysis

Austin Kinetic is in the business of satisfying companies’ information technology infrastructure needs.  We will provide service at various levels from consulting to installation. Services will be sold on a per-customer/case basis with heavy personal interaction between Austin Kinetic sales representatives and prospective customers.

4.3.1 Competition and Buying Patterns

In this industry that Austin Kinetic, word of mouth and reputation are king. While a limited amount of highly focused marketing will be effective, most contracts are gleaned from social contacts and networking.

Strategy and Implementation Summary

Austin Kinetic’s initial funding will be from its founders’ personal funds. Word-of-mouth and industry networking will be Austin Kinetic’s key source of clients. The company’s success will be based upon the service and satisfaction of customers to the point that they willingly refer new business.

5.1 Competitive Edge

From the onset, Austin Kinetic will have over 20 years of cumulative experience in the information technology field with a very broad range of hands-on experience. This, combined with a keen sense of customer service and satisfaction, will differentiate Austin Kinetic from its competitors.

5.2 Marketing Strategy

5.3 sales strategy.

Sales will focus a bit less on building relationships and more on solidifying confidence in Austin Kinetic’s competencies and skills. Our primary focus will be to answer the question, “how can Austin Kinetic best meet a customer’s information technology needs?” Delivering this answer in a clear, concise proposal allied with competitive pricing will be the key to closing deals.

5.3.1 Sales Forecast

Sales are forecast with an emphasis on project work at the onset. In the first few months, we will be primarily occupied in conducting short-term one-day to one-week projects while building Austin Kinetic’s reputation and brand name. Within the first six months, Austin Kinetic will have signed three annual service contracts, doubling that by the end of the year and each semi-annual period thereafter. Sales contracts will be set period contracts paid by monthly installments.

As a service business, our only direct costs would relate to the time spent by employees in responding to customers’ needs. Our employees are all paid a set salary, and not by hourly billing, so we have no direct costs of sales; these salaries can be found in the Personnel Plan.

5.4 Milestones

Austin Kinetic will have very simple marketing milestones geared toward industry networking and beginning to build name recognition.

Web Plan Summary

Austin Kinetic’s Web presence will not only serve as a medium for the company’s marketing message, but also will serve as an important tool for our customers. Customers will be provided with the ability to manage and monitor their accounts from anywhere that has access to the Internet. Additionally, consultants in the field will be able to track time and work journals through the site as well as develop and print immediate job estimates.

6.1 Website Marketing Strategy

Austin Kinetic’s Web presence will be utilized as a tool to assist the company’s overall marketing strategy. It will serve as a point of reference for information about the company and its services, and in a small part, lend credibility to the marketing message.

6.2 Development Requirements

Austin Kinetic’s site will reside in a two-tier environment. A back-end database will be utilized to manage customer data. The site will be developed with the assistance of a contracted professional developer.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

At the outset, Austin Kinetic will maintain five part-time employees, its founders. These employees will be responsible for all aspects of the business and serve in both managerial as well as technical roles.  As the business grows, additional engineers will be hired. We anticipate that during the fourth year of operation, the original five employees will be free from any technical duties and concentrate solely on their management responsibilities. At this time, Austin Kinetic will look to add a full-time sales and marketing manager as well.

7.1 Personnel Plan

Business permitting, Austin Kinetic will maintain a staff of five engineers through most of FY 2007. A secretary will be hired at the start of FY 2006 to assist with telephone and office management. At the end of FY 2007, an additional engineer will be brought on board as workload dictates. Beginning FY 2008, the original founding members will be transitioned from field work and into management, replaced by additional engineers.  Additionally, a full time marketing/sales representative will be hired. 

Compensation projections were made with annual merit increases of 5% for staff and 15% for the founders. The table also shows a profit sharing plan starting in the second year, based on 5% of the previous year’s net profits. These bonuses will be divided equally among staff members, including owners.

Financial Plan investor-ready personnel plan .">

Austin Kinetic will initially grow with project work, beginning to build service contracts from the six month point forward. The company will increase its project work to 2,560 man hours per month and increase its service contracts count by six each year. The initial growth will be financed primarily out of the pockets of its founders. The company will fund all growth from the cash flow of the business, remaining debt-free.

8.1 Important Assumptions

At the onset, the founding members of Austin Kinetic will take on much of the financial burden of running the company. There will be no need for dedicated office space until FY 2006 when we expect to open an office in Austin. Until then, Austin Kinetic will compensate travel-related expenses, if any, incurred in the course of business. The only foreseen recurring expenses will be voice mail services, marketing, insurance, Internet access, and Web presence. The lion’s share of funds will be held by Austin Kinetic to develop cash reserves for future expansion and a business climate buffer.

Customers will be billed on an hourly basis of $120. Engineers will be paid a salary, plus $25 per hour for on-call and overtime. Employees who establish the new project/contract will be paid a 5% bonus of the total project / contract price. Business call time of cell phones will be reimbursed.

8.2 Break-even Analysis

The table and chart below show our break-even analysis. As a service business, we have no direct cost of sales. Our break-even point ni the first year is therefore equal to the amount needed to cover our operating expenses, including payroll. We will reach break even, in the third month.

8.3 Projected Profit and Loss

In the first year, we will be based out of the founders’ homes. Adam Authortisement has renovated his garage for use as a meeting space and general office, when we need to get together as a group. Utilities in the first year represent the cost of home high-speed Internet access for all five employees ($45 each per month). This access is necessary for communications between personnel and for file transmission for all project and service work. 

After the first year, it will be more cost-effective and attuned to our growth to rent a space in downtown Austin, where we can consolidate equipment, combine utilities, and have a central location for our work and our secretary. Office space rented beginning FY 2006 is forecast to be $2,500 per month.

After the first month, Marketing and Promotion expenses are set at 5% of the previous month’s and year’s sales.

8.4 Projected Cash Flow

We have no sales on credit; all service accounts and projects are paid in advance, in installments. We anticipate no problems with our cash flow. By staying debt free and keeping expenses down, we expect a significant positive cash balance by the end of the first year.

8.5 Projected Balance Sheet

Our Balance Sheet is quite solid. We will build our asset base slowly over the first five years, expensing most of our computer and hardware equipment to offset taxes, since they will need replacing every two to three years.

8.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7379.02, Computer Related Consulting Services, are shown for comparison.

8.7 Long-term Plan

Austin Kinetic anticipates maintaining a steady profit percentage and plans to build cash reserves to an amount which would cover operating expenses for twelve months should any catastrophic event occur.  This will be a moving target and be recalculated on an annual basis as the business cash flow changes.  There has been no pre-set limit placed upon Austin Kinetic. Its founders see the possibility of expanding the company into a global force ranked equal to today’s top Fortune 500 companies.

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Blog » Business » Outsourcing Plan: Why You Need It and How to Make It

Outsourcing Plan: Why You Need It and How to Make It

The key component of every business is the ability to adapt. In order to build a successful business, one must monitor the needs of customers, partners, market, budget, company goals and standards and provide a win-win situation for all sides.

It’s a big responsibility and hardly managed on its own. As the business grows, so do its needs, but before you find yourself buried in work and anxiety, consider trying outsourcing as a way to keep things afloat.

Whether you run a small business or a big company, outsourcing allows you to keep up with the competition by giving a certain percent of work to a trained professional or other company for an affordable price. This way you can use the outside resources to reduce costs and implement innovations through great talent and professionals from across the globe. Also, with additional help, you will have the time to focus on the main functions of your business.

What to outsource

Almost any part of a business can be outsourced depending on necessity. There are two main outsourcing processes – BPO and KPO. Business Process Outsourcing (BPO) is a cost-effective way of outsourcing a portion of non-core or critical activities of the business to a third party. It includes a lot of fields, from money management, marketing development, data entry, to customer services, IT help, and online research.

On the other hand, Knowledge Processing Outsourcing (KPO) may not give financial benefits, but it helps in value. It is based on outsourcing the main (core) functions and requires knowledge of expertise – legal services, analytics, business and market research services, data conversion and others.

The most effective choice lies in outsourcing parts you can’t afford, or don’t need, only a few times a month:

• Professionals for bookkeeping and financial analysis
• Repetitive tasks – IT tech accounting, systems, network support, customer support, etc.

How to prepare

Don’t rush! The strategy is crucial for efficient outsourcing. To create a well-developed plan, first, you must thoroughly examine your business and set a clear goal. Retain the strong suits of the company; if something is working for you there is no need to change it. If you are running a small business, avoid outsourcing areas that directly impact customers.

Once you have established your main objectives and expectations, consult with your partners and/or an expert. Research and feedback can provide great suggestions for improvement. Complete market and risk analysis to be fully prepared for the possible outcome. Make a list of the criteria for quality, expertise and necessary costs for maintaining a standard you and your customers expect.

Other things to think about are pro and cons of outsourcing to freelancers vs. companies. The decision between the two depends on the type and quantity of work that needs to be done. With a good freelancer, projects can be innovative, precise and cost a lot less than a company would charge.

The problem is they are not always dependable and available all the time, whereas companies offer control quality and 24/7 availability. Even though it seems reasonable to pay more for consistency, remember that nothing is 100% secure. Bigger issues can occur when outsourcing offshore. It is harder to scale a small business with operational issues, delays, and unpredictable taxes. That’s why it’s important to know how to manage your remote workers .

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How to choose.

When it comes to choosing the right option for outsourcing , keep in mind that the responsibility is mutual. Don’t hire the first party you contact. There are a few factors to consider before making a deal:

• Flexibility
• Language barriers

To avoid mistakes, always check credentials and construct a solid contract with outlined specifics:

• Clear expectations
• Defined roles and rights
• Exit strategy – termination or date of renewal

Communication is incredibly important, at every step of the way. Secure access to the latest technology for easier workflow and better results. Regular checkups and a common work platform ensure a more productive environment and lower the risk of delays and mistakes. So make sure you choose the right software solutions for your business.

What to avoid

Considering the time, we usually spend online, every layman can determine if there’s something wrong with a certain website. They can discover a hoax lurking behind the corner. Your professional expertise gives you, even more, experience in this area.

So, if your gut is telling you that there’s something is wrong with a company that you are considering making your temporary partner, don’t ignore the alarming signs. Minding your own safety is quite important when outsourcing, so you should take appropriate precautionary measures and protect yourself.

The best way to do so is to make a list of things you should check every time you get in touch with an unfamiliar business. First of all, you should pay attention to the URL – if there are any irregularities there, chances are you found a fraud.

Browsers like Chrome, Internet Explorer, Firefox and Safari can help you with this – when a website is legit, they give their approval by placing a green bar before the URL. Otherwise, you will be able to notice a red warning that states “not secure”.

Furthermore, you should do some private snooping. It’s quite common that businesses have a testimonial section that quotes customers and businesses they’ve worked for in the past. If you want to be sure that a certain company is legit, you should simply get in touch with listed names and ask for their opinion.

Finally, the last item on your checklist should be social platforms. Primarily, if a business you’re evaluating doesn’t have accounts on social networks, there must be something wrong with it – every serious company is active on them.

However, if you find links that lead to profiles, it will be simple to spot if a business is legit. Both satisfied and unsatisfied users don’t hesitate when leaving their comments and rates, so after only a couple of minutes of scrolling, you’ll be able to know what to expect.

Overall, outsourcing is an excellent aid for expanding a business. Although it comes with some risk, the reward is a lot higher, if properly executed. The only question is: “Do you want to add outsourcing to your operational plan?”

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Catherine Park

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• Learn the Secrets to Making Your Business Better Than Your Competition - July 1, 2019
• How to Jumpstart a Business Using Minimal Financing - October 12, 2018
• Outsourcing Plan: Why You Need It and How to Make It - November 24, 2017

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Sourcing Plan Template

What is a Sourcing Plan?

A sourcing plan outlines a company's approach to sourcing materials, services, and other resources needed for operations. The plan helps to ensure that a company acquires the right resources at the right price, in the right quantity, and at the right time. It also helps to improve the stability and quality of the supply chain, while reducing costs and time.

What's included in this Sourcing Plan template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Sourcing Plan template for?

This Sourcing Plan template is designed for supply chain teams or managers in any industry who are looking to create a plan to manage and source materials. This template covers a comprehensive range of focus areas, objectives, projects, and key performance indicators (KPIs) to ensure that your business is obtaining the right resources to stay competitive.

1. Define clear examples of your focus areas

Focus areas are the main categories or topics that your strategy will cover. Your focus areas should be specific and relevant to your business goals. For example, a focus area could be 'Source Cost Reduction', 'Quality Assurance', or 'Supplier Relationships'. These are all topics that need to be addressed when creating a successful sourcing plan.

2. Think about the objectives that could fall under that focus area

Once you identify the focus areas, you need to start thinking about what objectives could be achieved in each. Objectives are the immediate goals that you want to accomplish in each focus area. For example, under the 'Source Cost Reduction' focus area, objectives could include 'Reduce total cost of materials' and 'Increase efficiency of sourcing process.'

3. Set measurable targets (KPIs) to tackle the objective

Once you have identified the objectives, you need to set measurable targets (known as Key Performance Indicators or KPIs) to help you reach your objectives. KPI targets need to be specific, relevant, and measurable. For example, under the 'Reduce total cost of materials' objective, a KPI could be to 'Decrease average cost of materials from $2.00 to $1.75'.

4. Implement related projects to achieve the KPIs

Once you have set the KPI targets, you need to start thinking about what projects or actions need to be implemented to achieve these targets. Projects should be specific and achievable. For example, under the 'Decrease average cost of materials' KPI, an action could be to 'Negotiate better pricing with vendors.'

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade is a strategy execution platform that provides the tools to build, manage, and track your sourcing plan. Cascade makes sure that your objectives and projects are aligned, and that you are tracking the right KPIs. With Cascade, you can see faster and better results from your strategy, so you can focus on what matters most: sourcing the best materials for your business.

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Checklist for Starting a Outsourcing Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Outsourcing business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

For more insightful videos visit our Small Business and Management Skills YouTube Chanel .

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The Mouse Trap

A mouse looked through the crack in the wall to see the farmer and his wife open a package. “What food might this contain?” the mouse wondered. He was devastated to discover it was a mousetrap.

Retreating to the farmyard, the mouse proclaimed the warning: “There is a mousetrap in the house! There is a mousetrap in the house!”

The chicken clucked and scratched, raised her head and said, “Mr. Mouse, I can tell this is a grave concern to you, but it is of no consequence to me. I cannot be bothered by it.”

The mouse turned to the pig and told him, “There is a mousetrap in the house! There is a mousetrap in the house!” The pig sympathized, but said, “I am so very sorry, Mr. Mouse, but there is nothing I can do about it but pray. Be assured you are in my prayers.”

The mouse turned to the cow and said, “There is a mousetrap in the house! There is a mousetrap in the house!” The cow said, “Wow, Mr. Mouse. I’m sorry for you, but it’s no skin off my nose.”

So, the mouse returned to the house, head down and dejected, to face the farmer’s mousetrap alone.

That very night a sound was heard throughout the house – like the sound of a mousetrap catching its prey. The farmer’s wife rushed to see what was caught. In the darkness, she did not see it was a venomous snake whose tail the trap had caught. The snake bit the farmer’s wife. The farmer rushed her to the hospital and she returned home with a fever.

Everyone knows you treat a fever with fresh chicken soup, so the farmer took his hatchet to the farmyard for the soup’s main ingredient. But his wife’s sickness continued, so friends and neighbors came to sit with her around the clock. To feed them, the farmer butchered the pig. The farmer’s wife did not get well; she died. So many people came for her funeral, the farmer had the cow slaughtered to provide enough meat for all of them.

The mouse looked upon it all from his crack in the wall with great sadness.

So, the next time you hear someone is facing a problem and think it doesn’t concern you, remember, when one of us is threatened, we are all at risk. We are all involved in this journey called life. We must keep an eye out for one another and make an extra effort to encourage one another. Each one of us is a vital thread in another person’s tapestry.

A curious child asked his mother: “Mommy, why are some of your hairs turning grey?”

The mother tried to use this occasion to teach her child: “It is because of you, dear. Every bad action of yours will turn one of my hairs grey!”

The child replied innocently: “Now I know why grandmother has only grey hairs on her head.”

Wrong Email Address

A couple planed to go on vacation but the wife was on a business trip so husband went to the destination first and his wife would meet him the next day.

When he reached his hotel, he decided to send his wife a quick email.

Unfortunately, when typing her email address, he mistyped a letter and his note was directed instead to an elderly preacher’s wife whose husband had passed away only the day before.

When the grieving widow checked her email, she took one look at the monitor, let out a piercing scream, and fell to the floor in a dead faint.

At the sound, her family rushed into the room and saw this note on the screen:

Dearest Wife,

Just got checked in. Everything prepared for your arrival tomorrow.

P.S. Sure is hot down here.

You Will Never Lose Your Value

A popular speaker started off a seminar by holding up a $20 bill. A crowd of 200 had gathered to hear him speak. He asked, “Who would like this $20 bill?”

200 hands went up.

He said, “I am going to give this $20 to one of you but first, let me do this.” He crumpled the bill up.

He then asked, “Who still wants it?”

All 200 hands were still raised.

“Well,” he replied, “What if I do this?” Then he dropped the bill on the ground and stomped on it with his shoes.

He picked it up, and showed it to the crowd. The bill was all crumpled and dirty.

“Now who still wants it?”

All the hands still went up.

“My friends, I have just showed you a very important lesson. No matter what I did to the money, you still wanted it because it did not decrease in value. It was still worth $20.

Many times in our lives, life crumples us and grinds us into the dirt. We make bad decisions or deal with poor circumstances. We feel worthless. But no matter what has happened or what will happen, you will never lose your value. You are special – Don’t ever forget it!

Today, experts Agree that more businesses face an unstable business environment. Improvements in information processing and telecommunications have made major changes in most businesses. In addition to this, improvements in transportation and the development of foreign economies (specifically in Europe and Asia) have created a global market and surpassed certain businesses. Additionally, as consumers are exposed to more choices, loyalty is becoming less important than it once was; a slightly better price or a temporary lack of inventory can easily result in the loss of customers. Competitors can also alter rapidly, with new ones appearing out of nowhere (often this means another side of the world ). With the instability of the global market, it is vital that you make strategic planning part of your overall company strategy. Proactive Versus Reactive Management. A few decades back, you can set and maintain a business by reacting to and meeting changes in tastes, prices and costs. This reactive type of direction was frequently enough to keep the company going. However, today changes occur fast and come from a number of directions. By the time a reactive supervisor can make the necessary adjustments, they might lose many clients -- possibly for good. Proactive Preparation is the expectation of future events. Decisions are based on forecasts of future conditions of the environment as opposed to responses to several crises as they occur. Proactive planning within an unstable, technology-driven business environment is important to ongoing success in almost any endeavor. Rather than responding to the situation as it changes, proactive preparation requires you to analyze environmental forces and make resource-allocation decisions. By doing this you will take your business where it ought to be in the next month, year and decade. Barry Worth, a consultant specializing in small business management, puts it this way: Today's entrepreneur must be a business proprietor. Anything built in today's business environment must have a step-by-step blueprint or strategy on the best way best to reach success. The blueprint for today's business owner is a business plan. The Need To Get a Strategic Plan. Planning plays a significant role in any business enterprise. It may make the difference between the success or failure of your business. You need to plan carefully before investing your time and effort, especially, your cash in any business venture. The demand for a plan is best exemplified by the following situation -"A Tale of 2 Firms." Two franchises (A and B) were started by individuals who had worked in direction in much bigger companies. While Franchise A supplied a item and Franchise B per service, the outcome of both franchise systems were marketed exclusively in the United States prior to the current owners became more involved. The output of both was readily available in other developed countries as well. The franchises opened about the same time and franchisee had a strong market presence, nor do they present. Today Franchise B is broke. By contrast, Franchise A is selling products in the Midwestern United States and in Europe. What was the Deciding difference in the two franchises' achievement? You probably expect it to be that one had developed a tactical plan and the other had not; however, it is not this easy. Several factors can influence the result of a business venture. There were many similarities between the franchises, but there were also many gaps. Most notably, Franchise A marketed a solution and Franchise B per service (although this doesn't clearly limit choices ). Another difference was that Franchise A had a carefully thought-out plan. The investors understood as they looked to get a franchise partner they wanted to locate a product that could satisfy global markets and a franchiser who'd support that kind of sales effort. These investors were established in the Midwest, but negotiated for exclusive rights to export the franchiser's product. Once they had acquired the franchise, as soon as they started to establish their business domestically, they also began to contact government specialists from the U.S. Department of Commerce as well as teachers and local managers with global experience. Clear plans Were developed outlining how they would position, market and distribute the product and which overseas markets would be targeted first. Even as they had been building sales in a single European market, they had been attending trade shows and preparation entry strategies others. By contrast, The second investor (Franchise B) started his company strictly because he wished to leave a former employer. Of course many small businesses get started this waynonetheless, in this case no investigation of franchising options was done. The business was located in an area which, as it turned out, included virtually no consumers for the kind of support being offered. When this error was accomplished, it had been too late to move--the investor only didn't have the cash or the desire to risk starting again. Other examples Further show the need for strategic planning and for developing a clear business plan. The owner of a business that seemed to be doing quite well in just two places was going to start in a third. The authors have been called in to develop a benefits policy and found cash flow problems that may be found just after operations had begun in the new location. After assessing the situation, a growth and financial plan was developed for the sound locations only. In another case, the authors determined that a company had purchased more equipment than was needed to do the current workload. After careful Analysis, plans to make further purchases were put on hold, along with the equipment available was used efficiently to meet immediate demands. A business Enterprise is to complex to assume that failure to develop a sound organization Plan is going to be the reason behind problems But this failure often counts Among the variables contributing to business issues. As Worth has said, "Being a company entrepreneur now takes constant vigilance to be able to Be able to take advantage of new opportunities and the availability of new Technology and information as they become." The first step in Doing this is to have a plan.

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Project Plan Template for Outsourcing

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• Map out all the tasks involved, from consultation and research to delivery and post-outsourcing activities
• Organize all your project information in one centralized location for easy access
• Easily track progress, assign responsibilities, and manage deadlines

Benefits of an Outsourcing Project Plan Template

• Helps to streamline the process
• Reduces communication and coordination costs
• Allows for more accurate planning
• Ensures that all key stakeholders are kept up-to-date on the project's progress

Main Elements of a Project Plan Template for Outsourcing

• Project overview
• Outsourcing project timeline
• Scope of work
• Requests for proposal
• Contract negotiations
• Evaluation and closing procedures

How to Use an Outsourcing Project Plan Template

1. identify your goals and objectives., 2. define milestones and deliverables., 3. set deadlines., 4. create budgets & resources plans., 5. monitor progress & adjust timelines., related project plan templates.

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