The latest trend in business is outsourcing. The term ‘outsourcing’ refers to sending out tasks to third-party services, who complete them and send them back. Some of the things commonly outsourced include accountancy, human resources, and recruitment. Considering that the world’s leading businesses are all outsourcing, it shouldn’t come as a surprise that there are myriad benefits associated with it. In fact, loads of companies have decided to outsource one part, for instance, their HR department to Global PEO agencies
You don’t have to be a big business to benefit from outsourcing, however. Many would argue that it is in fact the smallest businesses that benefit most. This post will outline some of the best benefits associated with outsourcing:
Customer Service
The main service outsourced by businesses is customer service. This is because running and maintaining a customer service department in-house can be very difficult, not to mention costly. The country that is most commonly outsourced to for customer service is India. Some of the benefits of outsourcing work to India include that they are one of the world’s most proficient nations in terms of the English language and it is very budget-friendly. If you want to transform your customer service department, then outsourcing needs to be given some consideration.
Lower Costs
Outsourcing can save your business a lot of money, in a few different ways. One of the main ways that outsourcing saves money is because by outsourcing to professionals, you are able to stick to smaller budgets and only pay for what you need– you won’t have to pay full-time staff. If you hired full-time accountancy staff for example, then you would have to pay them five days a week, despite only needing them for an hour a day (or perhaps less). Another way that outsourcing can save you money is because you are able to avoid making major investments in software and infrastructure.
Increased Efficiency
By outsourcing, you are able to save time. When you have more time you are able to focus on core competencies more efficiently, which increases your company’s productivity. The tasks that are outsourced are also completed more efficiently because the people completing them aren’t bogged down with myriad other things. The people working on your business’s tasks will focus on them entirely, without distraction. The same cannot be said for your business’s in-house staff, who probably have hundreds of other things to do. Increased efficiency will make your business easier to run and more profitable.
Core Competencies
Outsourcing allows your staff to focus on their core competencies. By being able to commit time to their strengths, they are able to significantly improve their performance. By allowing staff to focus on their strengths, you can benefit from their talents. With this said, you do need to make sure that you hire specialists. If you do not hire specialists, then outsourcing won’t make much of a difference in terms of your staff focusing on their strengths (because they won’t have any). In terms of your business’s actual core competencies, outsourcing them can improve efficiency, but on the other hand, can result in negative organisational changes.
Increased Flexibility
Outsourcing will increase your company’s flexibility. More flexibility is always good. A higher level of flexibility can help your business to attract better employees and can reduce recruitment costs. Additionally, flexibility can improve general job satisfaction and staff morale. Because you are outsourcing tasks, staff won’t be fixed to one specific thing and can move around freely. It is often administrative tasks that are automated. It just so happens that these are the tasks that are mind-numbingly boring and significantly decrease staff morale. By eliminating them, staff can focus on more important things.
Accelerated Time
Repetitive administrative tasks can be very boring. When your staff find something boring, they are more likely to complete tasks related to it with less enthusiasm. A reduction in enthusiasm can in turn mean that tasks are completed slower. This isn’t a problem that you will face when you outsource. Outsourcing agencies hire specialists, who complete tasks diligently and efficiently. By outsourcing, you will ensure that all tasks are completed on time or even early. Accelerated turnover time can improve overall company efficiency and help you to meet important deadlines faster.
Infrastructure Investment
Saving money allows you to invest it elsewhere, in more important areas. Paying for unnecessary full-time staff can suck hundreds of thousands of dollars out of your business’s savings. This same money could be applied to investing in important infrastructure for your business, like software. You can also invest in additional things that will improve your business’s overall performance. It’s also good to have a little money set aside, in case anything were to go wrong with your business. Saving money is something that’s not always possible when you are paying full-time staff, for very little work. They can be a real drain.
Thought Leadership
Thought leadership is very important to a business’s success. You can actually outsource your thought leadership if you don’t have the time set aside to dedicate to it. If you are going to outsource thought leadership, then you need to make sure that you find a specialist agency to work with. Your business’s thought leadership isn’t something that should be taken lightly. The best way to determine whether or not an agency is worth working with is to check out their reviews and read what other users have to say about them online. Thought leadership should be taken very seriously, so make sure that you interview every agency that you are considering working with. This is so that you can ascertain how committed they are to their work.
Better Focus
One last benefit to outsourcing is that it will increase your business’s overall focus. As mentioned earlier, when staff aren’t bogged down with meaningless administrative tasks they can focus on self-improvement. They can also focus on completing tasks diligently and effectively. Better focus results in better performance. With that said, you do need to make sure that you hire qualified and specialist staff members.
Outsourcing parts of your business can improve your business’s overall performance. A better performing business means a more profitable business. If you want to begin outsourcing, then carefully look around and select an agency that’s perfect for you. Read their reviews, and testimonials, and interview them.
