Running a business requires a plethora of resources. You need to make sure that your operations will go smoothly. These resources include time, money, and human resources, among others.
However, if you’re a startup business, this may pose a challenge for you. Building your own business means laying out its foundations, and it entails a variety of tasks. These tasks, however light it may seem, are integral in keeping your business afloat.
With the advent of the Internet, some businesses are opting to shift their business models to accommodate their needs and goals. Outsourcing is one of the emerging strategies entrepreneurs are considering nowadays. Simply put, outsourcing is a strategy used to hire outside resources to perform activities traditionally done by the company’s in-house staff.
For some companies, it could be hard for them to admit that they need to outsource. However, current trends suggest that it should not be the case. In reality, outsourcing some of your tasks is an effective and efficient business strategy.
In case you need more convincing, here are five reasons why you should outsource:
1. Cost-Effective
Most startups have difficulty managing their limited funds. For startup owners, it can be tough to look for manpower who are equipped with the necessary skills a job requires – especially if you don’t have a competitive salary to offer. This is where you can outsource instead.
Most outsourcing firms are based in developing countries with a highly educated population. Their rates are usually less than those found in developed countries. This means you get the same quality, if not more, with less cost. You can pay them by the hour or based on the task you require of them. They also have competitive offers that you can choose from to best suit your company’s needs.
Investing in these services could also give you a high ROI. Statistically speaking, outsourcing reduces up to 70% of the cost. This leverage can allow you to achieve more within your own company’s means.
2. Allows you to focus on your business’ core competencies
As your business starts to grow, you will have an increased demand in your products and/or services. Your customer value will increase, and you won’t have a choice but to accommodate them. This entails a series of administrative tasks, marketing, and other services that may overwork your in-house staff.
Outsourcing eliminates the hassle. Outsourcing companies have their own niche that they are highly specialized in. They can take those jobs that might seem menial to you and make the most out of it so you can focus on your business’ core competencies.
3.Access to experts and the latest technologies
Outsourcing firms take pride in the specific skills they deliver. They have established onboarding processes that help them filter the best people to do the job. As such, this pool of trained specialists can meet you halfway in communicating and delivering what your company needs.
Another advantage they have is their vast experience. Some outsourcing companies have years of experience in working with other companies that they can apply to your business. They can even suggest additional strategies in working their way around the tasks given to them.
Moreover, outsourced workers are equipped with the latest technologies – technologies that may cost you more if you decide to use it on your own. Buying a software’s license and training your people in using that software, for example, can cause you time that you can invest in other productive activities.
4. Increased productivity
When you focus more on your core competencies, you can generate more revenue for your company. Your in-house staff can now prioritize their own tasks because of their increased attention to the company’s activities. It also means you can hire and develop people that are truly fundamental to the company’s functions as well.
Outsourcing specific tasks can give your employees a breath of fresh air as they have more time to finish their tasks well. They don’t have to do the small tasks that could take a huge chunk of time. It increases overall productivity for you and your staff.
5. Reduced Risk and Increased Flexibility
Since you are outsourcing specialists, they can also recommend risk-reducing strategies for your business.
We all know how one employee’s mishap could be devastating to the whole company. This may be as little as sending one email to the wrong person or inputting a different value to the company’s tracker – small mishaps that could potentially lead to bigger problems if not taken seriously. When you outsource, these risks are reduced. Outsourced personnels have the appropriate protocols when such things happen. Leave it to the experts, as they say.
Moreover, working with an external service provider also allows flexibility for your company. If you decide to switch strategies, it would be easier to scale up or down. You also have more freedom to venture into new platforms and test it out with reduced risks. Short-time projects could even yield positive benefits for you given the right tools.
So, the FINAL QUESTION is… Do I really need to outsource?
Given the five reasons above, we now know how valuable outsourcing is for businesses and start-ups. Don’t limit yourself and what your company can achieve. In the 21st century, it’s best to “focus on what you do best and outsource the rest”.
Decided to outsource? Talk to us today and let’s discuss how Prominent Outsource can take your business towards further success.
