Outsourcing is a business-to-business operation that involves entrusting different company functions to an external partner or offshore provider.
Today, most companies choose to outsource different functions such as sales, customer support, marketing, and IT to other companies with proven expertise in said areas due to the many advantages that it can provide to companies.
Outsourcing Around the World
There is a wellspring of professionals that deal with customer service, delivery, marketing, and computer security who can better handle the job and help minimize costs. For instance, a company in the United States can enlist the help of a delivery/logistics company in South Korea to send out their products worldwide.
Likewise, a company in Australia can hire a call center to handle its customer service. The business process outsourcing (BPO) industry in the Philippines is a reliable network of call center companies that provide customer and technical support on a global scale.
Companies can bring to life their ideal vision for their brand by outsourcing marketing tasks to specialists in the field. These marketing agencies can build brand identity and boost digital presence through their proficiency in different aspects of online marketing.
Lastly, a computer company can help manage servers and ensure cyber protection in the digital department. Doing so will help boost network security and deliver maximum protection for the client’s assets.
Indeed, outsourcing lets you delegate responsibilities strategically by allowing an external provider to manage and administer the selected department to an agreed set of standards.
The Benefits of Outsourcing to Your Business
In this article, we will help you understand the beneficial effects of outsourcing on your business so that you could dip your foot in the water and see if outsourcing is best for you.
- Outsourcing allows you to meet on-demand specialists with higher competence and greater capabilities. By hiring specialists with years of experience in their respective fields, your company will have access to more skilled resources and a wider network of contacts.
The market for customer service representatives, for example, shows no signs of slowing down in countries like the Philippines and India. You can meet top talents who have undergone rigorous training in the latest technology, tools, and practices.
- Outsourcing allows you to focus your time and energy on core business functions, particularly in areas where you can add value. Since you delegate the tasks to an external partner, you can now spend more time on the tasks you know best.
You can allocate your energy to core business functions and let others worry about the administrative or clerical tasks. As you place these valuable secondary tasks into the professionals’ hands, you can lead your team to maximize time for the most critical aspects of your company.
Your external partner can perform accounting, data entry, and other back-office support tasks.
- Outsourcing allows you to reduce costs if the external supplier can provide it at a lower price. Instead of purchasing expensive new equipment or hiring new employees, your supplier can do the job. In fact, the cost of processing a new employee can be lessened because the outsourcing agency can take care of that for you.
The agency will be responsible for hiring search, onboarding, health care and other benefits, and payroll taxes. When you work with contractors, you can expect your company to get the same amount of work done without losing too much in budget.
- Outsourcing makes operations more flexible and adaptable to changing circumstances, especially when there is a need to change capacity. This means that projects or programs that change every cycle can add or remove resources when necessary.
The contract with the outsourcing company can either be renewed or let go depending on the circumstances, maintaining your company’s flexibility.
For instance, the accounting department is usually short-handed during tax season and auditing, so hire a company to help with the additional resources for a fixed period. You can work with the same company to maintain consistency.
- Outsourcing promotes growth in terms of long-term expansion. Indeed, it helps speed scaling up or down. Once you’ve saved up enough money and allocated your resources to the proper avenues, you can plan out a company expansion strategy.
For instance, if you own a small office with only a few employees, there is an opportunity for hiring new staff to boost your productivity even more.
- Outsourcing helps eliminate the need for investment in infrastructure. If you need a new location for a project, it’s best to outsource to save up costs. This ensures that the funds you allocated initially for infrastructure can be used for other efforts, such as building your brand or research and development.
- Outsourcing provides a 24-hour, round-the-clock work schedule, especially if the offshore partner is in an opposite time zone. Once you clock out and leave the office, the employees in the outsourcing company may be just beginning their day. This will help your company operate 24/7 and address any urgent concerns without delay.
- Outsourcing allows you to focus on revenue without worrying about other aspects, such as marketing or IT. Performing marketing duties can take much of your time, energy, and effort.
If you’re just a startup and just beginning to get the hang of how to run things, it is a great idea to delegate marketing and IT to an outsourcing team to lessen your load and ensure that you are maximizing the specialties of experts.
- Outsourcing provides the opportunity to diversify your team. Since you can meet experts from all around the world—from all walks of life or different cultures and ethnicities—there is a huge chance that you can diversify your team’s roster.
- Outsourcing allows you to develop the skillsets of your internal staff. Lastly, once you focus on your internal core team, you can guide and groom them into developing certain skills necessary for the job. They will become masters at their craft, and it will be especially beneficial for revenue.
Outsourcing can connect companies that share the same vision and create a lasting partnership that brings mutual benefits to all. It will help promote growth, reduce costs, diversify staff, and strengthen flexibility. Outsourcing can provide you the opportunity to break new ground and innovate. It is a step towards a brighter future.