5 Benefits of Outsourcing Your Business Processes
Your business has finally found its groove. You're signing new contracts, attracting more clients, and achieving your business objectives. The future looks bright.
A few months later, everything goes haywire. Employees look overwhelmed and out of depth. Your customer service team is struggling to sort out support requests. As if things couldn't get any worse, your ROI has now dipped to worrying figures. What once looked like a fast-rising business is crumbling under pressure.
Does this scenario sound familiar? Has it happened to your company before? The good news is, you don't have to wait until your business is on a rough patch for you to outsource services. And with the outsourcing market growing by 6% annually, there may never be a better time to learn the advantages of this phenomenon.
What is Outsourcing?
Often when people hear this phrase, they think of large overseas call centers somewhere in India or South America. While those exist, it's not the whole picture. Outsourcing can imply working with developers, independent contractors, or using business support service to scale operations.
Simply put, outsourcing is using third-party service providers to handle specific business functions instead of hiring new staff or assigning those functions to the existing staff.
For example, if you need help to buy new office equipment, you can outsource this to a procurement service provider. It's a much more feasible option than having to hire an in-house procurement team.
Why is Outsourcing a Good Strategy for Your Business?
1. Focus On Your Core Business Functions
This is by far the most important benefit of outsourcing.
It's way more efficient to spend your time doing what you're good at. If you sell digital products, you should be busy creating. If you're a consultant, focus on coaching. If you're a service-based SMB, you should be plumbing, repairing, roofing, or whatever else you do.
There will always be an array of tasks on your plate that don't play to your strengths. Maybe you aren't very good at customer service, finding top talent, or filling out all that cumbersome HR paperwork. Remember that every minute you (or your team) spend outside your skill set is time wasted. Outsource an expert to do what you not good at and focus on only doing what you good at.
It's always advisable to outsource everything except your core business functions. You'll cut back on costs, avoid slumps, and spend your energy on things that bring the highest ROI.
2. Cut Down On Overhead Costs & Labor Expenses
Onboarding and training staff can be incredibly costly, especially for short-term projects. Besides, temporary employees may not deliver top-quality work you're looking for.
When you outsource, you turn fixed labor costs (full-time salary) into variable costs (pay-what-you-need service). That means you only pay for the services you consume. The end result? You achieve a high level of staffing flexibility that wouldn't be the case with in-house employees.
For example, you probably don't need a full-time data entry specialist. It's a crucial job that you can't brush aside, but you can always hire one when you need them.
It's possible to hire a part-time data entry expert but finding skilled people who will only work a few hours a week can be daunting. They're likely to call it quits once they land a full-time gig. By outsourcing your data entry, you will only pay when you need the service.
3. Access To a Larger Talent Pool
When recruiting new employees, you might only have access to a small, local talent pool.
Not anymore. Outsourcing can allow you to gain access to a larger, better-quality pool of talents. You only work with the crème de la crème in your industry. Outsourcing makes it possible to work with skilled professionals from any part of the world particularly for tasks that do not require physical presence.
4. Better Risk Management
As an entrepreneur who's starting out, the last thing you want is losses due to staff incompetency. Outsourcing some aspects of your business can be a real game-changer in this regard.
By outsourcing to a reliable outsourcing provider like The Functionary, you reduce the risk involved in having the same task handled by inexperienced in-house employees.
5. Level The Playing Field
Let's face it. Most small and medium level companies can't match the in-house support services that larger companies have.
Outsourcing can help SMBs act "large" by accessing the same talents, expertise, and economies of scale that big corporations enjoy. And with access to best-of-breed support, nothing can stop you from making waves in the market.
Outsourcing Is the Way to Go
The benefits of outsourcing some or your business processes should now be obvious. Outsourcing will help your business grow.
Invest in a world-class outsourcing vendor/partner that understands the nooks and crannies of running your business. One who goes out of their way to ensure you have the right technologies, systems, and staff to cope with all your business needs. Good luck finding a partner that fits your outsourcing jigsaw.