Upon starting, you may be trying to keep your business on the small side for more efficient management and cutting costs where possible. More and more mindful businesses are now finding ways they can efficiently manage their workload and save money in the process through the act of outsourcing key tasks. This involves hiring external vendors to take on the tasks of their business that can be done from a completely different location – with jobs including the likes of payroll, marketing, and inventory management. In this guide, we’re going to take a look at some of the key benefits of outsourcing:
-
Cost advantages
One of the key benefits of outsourcing is that it can save your business a great deal of money in the long term. When certain tasks need to be completed but you simply haven’t got the time to complete them yourself, hiring a permanent member of staff may not be an efficient option for ad-hoc tasks. What’s more, having to purchase equipment or move to a certain location can be expensive, so it’s best to expand your resources externally. While you may be keen to expand your business internally, you may be able to cut costs by an astonishing 60% by hiring external companies. You can lower expenses when not hiring full-time staff members, through savings such as:
- Onboarding
- Training programs
- Employee benefits
- Vacation and sick pay
- Payroll taxes
The bottom line is that by outsourcing, you can still achieve the same results, but for far less money.
-
Increased efficiency
When you outsource work to an external company, you are essentially ensuring the job gets done with professionalism. When hiring your staff, you have to spend time training them and that takes both time and money, as opposed to simply hiring a company that already has the expertise needed. In doing so, you can have the peace of mind that the job will be done with much greater proficiency than a staff member you have recently hired with very little experience. As a result, this will lead to an increase in productivity and should contribute to boosting your company’s bottom line. In terms of HR, for example, various types of HR outsourcing may be of benefit to your company that you may never have considered before but could be of benefit to increase efficiency in this area of your business.
-
Focus on more important tasks
Being a business owner means that you’ll be snowed under with tasks daily – and it’s unlikely you’ll be able to meet every single deadline you’re given. This will not only make you feel overwhelmed to the point of working every hour you can, but you could end up dissatisfying customers who need their tasks completed by a certain date. By outsourcing, you can be assured that tasks will be finalized by the allocated date, so you can focus on more pressing matters within your business that need your immediate and undivided attention.
-
Increased reach
Many businesses outsource their workload to gain access to greater talent anywhere in the world. It’s not always the case that you’ll find skilled professionals where your business is located, but outsourcing allows you to seek talent from anywhere in the world. What’s more, hiring freelance professionals in your particular region may be expensive; however, the ability to hire globally means you may be able to obtain a cheaper rate for services.
-
Run your business on a 24-hour basis
By choosing to outsource to a country in another time zone, such as India, you’re able to make the most of the 24-hour day. Your outsourcing partner can complete tasks even when you’re working day has come to an end. When you wake up in the morning, critical tasks will have been completed by the deadline, so you’re able to immediately review and send the work on to your clients and customers in good time.
-
Customer satisfaction
By using your outsourcing partner where necessary, you are much more likely to achieve greater customer satisfaction than if you were to complete tasks entirely in-house. This is because outsourcing companies have had years of experience in their field and as a result, should ensure that deliveries are on time and high-quality service is guaranteed. This will help your company benefit from greater customer satisfaction and have the ability to create a loyal customer base.
-
Flexibility of work relationships
Outsourcing also allows a business to find and choose the most suitable provider who would be able to complement their niche and company culture. A good outsourcing company comes with the ambition of working closely with their clients to ensure your needs are met. One of the benefits of outsourcing is that there are no ties to one company, as opposed to hiring a permanent employee. You can simply move between outsourcing companies whenever you desire, without the restriction of sticking with just one. However, it would be in your best interests to build a long-term relationship with your vendors so they build up a solid knowledge base of exactly how you’d like your tasks to be completed.
-
Access to new resources
Hiring a new member of staff often requires expensive training not to mention a long recruiting process. You have to spend time teaching company policies, roadmaps and processes; however, an outsourcing company will undertake these costs. When you can’t afford to hire your staff, you can be assured that any professional outsourcing partner will undertake what needs to be done without having to be informed. What’s more, they are also accountable for any permits that the work requires. By focusing on their area of expertise, they are much more inclined to stay on top of the latest trends and techniques in their industry, which you may not have the time or expertise to manage around your other responsibilities. Furthermore, they also have a network of professionals they can refer to, to help resolve your problem if they don’t have the expertise themselves.
Here is where a PEO Company can be really helpful. In some countries with stringent regulations, having a partner can streamline the process of building a team and payroll.
