Picture the scene. Your company wants to undertake a brand new project, set to not only bring in hundreds of thousands of dollars, but also to benefit the lives of consumers.
There’s just one problem. Nobody in your team has the experience or the expertise to carry out the project. You face two options: hire an entirely new team dedicated to this temporary project, or say no to the project, missing out on a huge opportunity.
That’s where outsourcing comes in.
Outsourcing involves hiring a company that specializes in the skillset you need to support or carry out a particular project. Many businesses outsource companies for marketing, IT, manufacturing, or security, among other things. In fact, 37% of small businesses outsource at least one business process.
Here’s why outsourcing is becoming an increasingly popular approach in industries all over the world.
Reduce Staffing Costs
Sometimes, a project introduces the need for a new job role that would only be temporarily required. This type of situation forces you to recruit temporary staff, or try to pass on new duties to existing staff members, inevitably with a pay rise.
Outsourcing reduces the need to hire new staff members or hand out pay rises by providing you with a temporary workforce that you only need to pay for as long as the project lasts.
Marketing companies might know everything there is to know about the psychology of advertising, but it’s understandable if they’re less savvy about cybersecurity and need to outsource it to IT experts.
Similarly, pharmaceutical companies might lack expertise in manufacturing, meaning they require the services of biologics CDMO companies. If your business lacks expertise in a certain field, it’s a good idea to work with a more experienced business to provide services for a particular project or process.
Outsourcing tasks, projects or processes frees up your employees’ time. That extra time can be spend focusing on playing to your strengths and doing what you do best, including taking the time to grow your business.
Outsourcing is a great way to avoid spreading your team too thin. Instead of asking them to take on too many tasks leaving them unable to prioritize one in particular, let your team members use their time in the most productive way possible.
Outsourcing vs Offshoring
Companies who need extra support with an aspect of their business but don’t want to hire new permanent staff can also consider offshoring. Offshoring involves hiring a team based in another country, often a country with a lower cost of living and lower wage expectations.
While offshoring provides benefits such as having a remote, highly-trained team and reducing labor costs, there can be issues with language barriers and working from different time zones. Outsourcing offers a lot of the benefits of offshoring, but typically with a workforce from the same country.
This method of filling roles is, however, becoming more popular, especially as more companies require roles like software developers and need to look further afield for staffing.
In short, there are many situations in which companies can benefit from looking to another business to provide staffing and resources, and these practices are only becoming more common – for good reason.