24 May Leverage your Business with Outsourcing
Outsourcing as a marketing strategy is a trend used by many companies. It has become more popular in the last few years with varied advantages for companies across the globe. It has helped to streamline business processes and boost growth. Businesses have been able to implement new technology trends to stay competitive, achieve significant cost saving, reduce employee headcount while having access to expertise and modern development practices. All this while focusing on the core business goals.
A company’s business structure requires consistent growth for return in investment, without which the company is doomed to failure. In the past, outsourcing was equated to job losses. However, outsourcing has helped mitigate challenges in the business model with the current emerging economies and improved operational efficiency. More recently, due to the covid-19 pandemic, companies have been forced to outsource to overcome various challenges encountered. Outsourcing means that a company delegates some of its workload to a remote company where labor costs are less. Companies are opting to outsource over employing due to the following benefits.
Office-based work requires overhead expenses ranging from furniture, rent, electricity costs, and employee expenses, all of which can stretch if not deplete company resources. Outsourcing is far much cheaper compared to hiring full-time employees. It eliminates the hassles and challenges that come with employees. Full-time employees require benefits, office space and insurance, and fixed costs. The costs needed to maintain outsourced employees are minimal, and more so if the work is outsourced to developing countries, the savings are much more significant. Outsourced work has no overhead costs to tie down the company.
Privacy and Security
Permanent employees, most of the time, are privy to a company’s private information and procedures. To counter this, companies ensure the employees sign non-disclosure agreements to ensure no leakage of company “secrets” even after the employee leaves the company. Outsourcing eliminates the need for such contracts unless in scarce situations. Simply because the outsourced employees or company has no access to company information, only that which is in the public domain. The company, therefore, maintains anonymity.
Focus on Core Competencies
Some of the areas companies are outsourcing include customer service and social media marketing. It ensures that a company can concentrate on the core business goals while outsourcing the other duties to experts in their field. In essence, it means that a company does not have to worry about all the business aspects but concentrates on doing what they are good at by putting energy in areas that matter. For example, small businesses do not need to hire full-time teams in IT development, legal, public relations, or advertising. By outsourcing, a company can leverage expert knowledge and accomplish tasks more efficiently.
Access to technology
Outsourcing companies use top-cutting-edge technology to ensure a high-quality product and excellent performance. The companies use resources and tools that have been constantly tested and are confident of the quality. For example, a company that is outsourcing IT development, the outsourcing company will set you up with the latest software technology that your business requires. The company has mastered these technologies with time through training and experience. The result is that your company uses the newest technology from a vast pool of ever-changing trends without you having to research what is ideal for your company.
A company can be set up in less time through outsourcing compared to recruiting and training new employees. It eliminates costs associated with recruitment and building a business team. Outsourcing ensures all the work is handed over to the company and tasks are done more efficiently and quicker. For example, a web developer can assist in setting up an online e-commerce business in your preferred platform within a matter of hours. A task that could have taken months to accomplish is performed within short timelines.
Better access to Global Expertise
Depending on the area a business is outsourced, a company can leverage world-class expertise without the limitations of local options. The labor pool is extensive since a company can access knowledge and skills that might not be available locally or limited. The availability of expert talent for a business has a significant impact on a business. The right outsourced company ensures your projects are handled by skilled individuals whose primary goal is to provide you consistently have high-quality products and services. Additionally, outsourced companies are more knowledgeable and have specialized in their area of expertise.
Sometimes companies have short-term projects, which could be between six months to 1 year. An outsourced company works on the assigned project without tying you down and you still have control of the project. It eliminates the hiring of short-term employees, which may end up being a messy affair to fire the employee once the project is terminated. The company has more flexibility to scale down operations depending on the company goals, which can change without prior notice. For example, you can rotate experts between priority tasks as requested.
Boost Internal Staff Productivity
Outsourcing ensures that valuable resources are freed up, and in return the in-house employees have better productivity and efficiency. For example, Outsourcing office cleaning ensures that your employees do not need to worry about the cleanliness of the work environment. It improves their productivity as they have less to do and worry about. Consequently, they feel motivated to work at their best without feeling overworked. Hiring an outside service provider can help you complete tasks much more efficiently by pooling resources with your in-house employees by filling in gaps. For example, this could be in an area where your employees lack specific capabilities and require assistance to complete a task.
The time difference between different world zones allows work to be done round the clock. For example, work sent at the end of the day in one-time zone is accomplished much faster due to the time difference. When one part of the world calls it a day, another part has just begun the day. It ensures work continues even after employees have gone home. If clarification is needed, feedback is given immediately, and work is completed earlier than expected, leading to greater efficiency and increased productivity.
Additionally, if you have an outsourced team that ensures office cleanliness, the company provides the availability of staff to clean your facility. Unlike a company which employs a cleaner, who in the event they get sick and are unable to perform everyday duties. The company operations will be disrupted, getting a replacement or having another employee perform the task.
As the business grows with an increase in workload, there’s a demand to hire more staff. Outsourcing ensures the growth of your business without having to worry about hiring more people and their capability to handle the work. The company will consistently deliver on time without you having to add more responsibilities to your employees.
Outsourcing companies are available around the clock to respond to customer queries promptly. It boosts your customer’s satisfaction, especially for companies that require round-the-clock care. Additionally, the outsourced companies are well equipped to handle customers through their expertise and experience. They offer leverage on the best customer practices to retain your clients and keep them satisfied by providing customers responsive and personalized services.
The primary reason for outsourcing company operations is to reduce costs. In turn, it means that a company saves costs hence increasing the business profits. A manufacturing business can save vast amounts of money by outsourcing products and services. More so when outsourced to countries with minimal labor costs.
Companies want to keep costs low while growing the business and generate revenue. Outsourcing has made it possible for companies that would otherwise have shut down to remain afloat. Companies are focused on their fundamental goals, implement new technology to the business, and fulfill labor requirements. The growth of outsourcing will only spearhead forward. An essential need for a company is to analyze areas of the company that it can outsource and the best way forward to action the process.
Looking forward to the future, outsourcing will be good for the economy by helping companies reduce costs and increase job creation and productivity. However, a word of caution, when outsourcing, it is vital to look for individuals offering services that align with your goals and deliver value to your business.