What is outsourcing by the hour?

Outsourcing has become a cornerstone strategy for businesses aiming to streamline operations and enhance productivity. 

One of the popular methods today is outsourcing by the hour. It’s a flexible solution that changes how companies handle tasks and use resources.

But what exactly is outsourcing by the hour, and how does it benefit your business needs?

In the 467th episode of the Outsource Accelerator podcast, Natcho Angelo, the CEO of Kuubiik, discussed their unique approach to outsourcing.

What is outsourcing by the hour?

Outsourcing by the hour refers to a business arrangement where a company hires external individuals or firms to perform specific tasks or services on an hourly basis. 

This approach allows flexibility in managing workloads, accessing specialized skills, and controlling costs.

How outsourcing by the hour works

During the conversation, Natcho mentioned how their outsourcing by the hours works:

“Clients often want to try or test with the hourly rate before transitioning to full-time. It’s a way to assess the quality and ensure they can consistently rely on the work.”

“The good thing about the hourly arrangement is that it’s monthly. There’s no contract or anything. It’s really simple – if you like it, you stay. If you don’t, you can just stop the contract, and that’s it.” Natcho said.

Benefits of outsourcing by the hour

Hourly outsourcing offers several benefits for businesses, including:

Cost efficiency

Outsourcing by the hour offers cost advantages as companies only pay for the hours worked. 

It eliminates the need for fixed salaries, benefits, and other overhead costs associated with full-time employees. This results in potential cost savings for the business.

Flexibility

The hourly outsourcing model provides flexibility in scaling resources according to the project’s requirements. 

Businesses can easily adjust the number of hours allocated to outsourcing partners, adapting to changes in workload or project scope.

Focus on core activities

Organizations can redirect their internal resources and attention to core business activities by outsourcing certain tasks by the hour. 

This strategic focus can lead to increased productivity and competitiveness in the market.

BPO recruitment process in outsourcing by the hour

Outsourcing companies like Kuubiik utilize a recruitment process for hourly outsourcing that typically involves several steps:

1 Identifying client needs

In the podcast, Natcho explained that clients often request talent from specific countries based on their business development goals. 

“If a client wanted talent in a particular country, we could accommodate that request.

For instance, sometimes clients would express, ‘I want someone in Thailand because I’m developing my business there,’ or ‘I need someone in Mexico because I prefer them to be in the same time zone as the US.'”

The Kuubiik CEO also shared that language requirements often affect talent placement. 

“Sometimes there are language requirements, like needing someone to speak Cantonese for clients in Hong Kong or requiring proficiency in Spanish for those based in South America.” 

He assured that the company could cater to such specifications.

Regarding preferences for specific countries, Natcho clarified, “We don’t necessarily have a preference for the country. 

We find the best-suited candidate based on the job description, regardless of their location. 

Additionally, we consider the budget, as some clients might have specific financial constraints.”

2. Utilizing recruitment portals

Natcho shared Kuubiik’s strategy for finding candidates from different countries. 

“We utilize a lot of recruitment portals, but over the last few years, we’ve seen an increase in organic candidates.

Additionally, our website has become a hub for a fantastic talent pool.”

“On a daily basis, I think on a weekly base, we get about three to four hundred new talents or new candidates.” 

“Of course, we need to go through and interview them, and then we will put them into our candidate list. And whenever we have a client looking for specific talent, we would have that sort of hot and ready candidates.”

3. Interview process and pre-hiring procedures

Natcho discussed their pre-hiring procedures, which involve several crucial steps:

 “Before hiring someone, we conduct background checks, including criminality, ID verification, and reference checks. This is mandatory as per our standard operating procedures (SOPs).” 

He emphasized that the company also offers test assessments as part of the hiring process for full-time positions. 

Regarding the company culture, Natcho shared, “We conduct monthly check-ups with everyone to ensure high standards and a sense of belonging.

Even though they work full-time for clients, [We want them] to feel connected to us and take pride in working with us.” 

4. On-going training and support

Natcho talked about Kuubiik’s approach to professional development and client satisfaction. 

“At Kuubiik, we focus on accompanying our employees. For instance, if a client wants someone to learn AI, we offer training sessions to support them in excelling in their tasks and ensuring client satisfaction.”

“As long as we keep the client satisfied and they are happy with our work, that’s the most important thing for me.”  

Further, Natcho highlighted their success in client retention:  “We have very good client retention, with some clients being with us since our first day. 

It’s a testament to the quality of our work and the effort we put into everything we do.”

Why consider outsourcing by the hour

The appeal of outsourcing by the hour goes beyond its cost-effectiveness and flexibility. 

So, why are more companies opting for this strategic approach?

• Dynamic workforce: Outsourcing by the hour allows companies to assemble a dynamic workforce tailored to the specific needs of each project. 

• Global talent access: Companies can tap into a global talent pool, bringing diverse skills and perspectives.
• Risk mitigation: With the ability to scale resources as needed, businesses can mitigate risks associated with fluctuating workloads. 
• Improved focus: Companies can redirect their energy towards strategic planning and core business activities by outsourcing routine and time-consuming tasks.

Outsourcing by the hour is an attractive option for many businesses. To ensure success, businesses should carefully select outsourcing partners, establish clear communication channels, and maintain oversight.