In the business world, there is a buzzword revolving within, outsourcing. Moreover, it is noticeable that more cost and quality oriented businesses globally are turning to popular outsourcing destinations for their secondary core business processes.
What exactly is this outsourcing and how important is it for a company’s growth? Well, this article aims to delve deeper into outsourcing, its importance and furthermore, the value proposition it offers.
What exactly is Outsourcing?
Outsourcing simply is a process where companies entrust non-core business functions to external vendors. Basically, any business process that does not require handling at the headquarters and can be done from an offshore location is liable for outsourcing. Such functions include payroll processing, accounting, and bookkeeping, texting and editing, inventory management, transactions filling, transcription and data conversion, to name a few.
Outsourcing is important in businesses growth as observed by the following benefits accrued.
1. Saves the Cost of Running a Business
One of the visible and most obvious benefits of outsourcing is cost saving. If you look at it from that perspective, you can get a job like transcription done at a much lower cost when outsourced offshore, for instance, in India. The same quantity of work may cost you double if you decide to do it at headquarters due to the difference in wages.
Outsourcing such processes can reduce cost by about 60%, and moreover, you also get high-quality services, meaning low-cost doesn’t necessarily mean low-quality.
2. Increased efficiency
As you seek an outsourcing partner, they not only provide you with services but also bring in years of experience and expertise to the table. They are a guarantee that they’ll deliver complex outsourcing projects leaving you to rest easy knowing you have the best team taking care of your projects. Furthermore, this leads to increased productivity and efficiency in the business.
3. Leave you to Focus on Core Business Areas
Outsourcing some processes leave you with ample time, energy and space to focus on building your brand, invest in R&D and providing optimal value-added services to your customer base.
4. Offers Continuity and Risk Management
Quite often, businesses have suffered from bouts of high employee turnover, which introduces uncertainty and inconsistency to a business. Outsourcing reduces the risk of a substandard operation to a company while ensuring a level of continuity to the company.
5. Enables You to Develop Internal Staff
Sometimes a large project like audits and tax projects may demand an exquisite set of skills that your internal staff may lack. You can introduce on-site outsourcing where you bring in the contractors to your business, who will work alongside your staff and they’ll gain a new skill set.
The Bottom Line
As I conclude, it is evident why outsourcing has become so popular. It has the capacity to pull your business out of a temporary rough patch, save you costs, and generally, help you grow your business. Moreover, there are no limits when it comes to outsourcing, you can work with one contractor or several depending on your company needs.