10 Ways Outsourcing Can Benefit Your Business
Ever considered outsourcing? It’s an option you should seriously consider if you’re an entrepreneur hoping to take your business to the next level.
First off, “outsourcing” means contracting services or job functions from third-party providers. This can mean hiring freelance professionals within your home country or even overseas. Most of the time, companies outsource front-office and back-office jobs such as:
“Outsourcing is a great way to help your business as it progresses through its various growth stages,” according to Forbes. “In order to maintain steady growth and productivity, you should find a happy balance of in-house employees and outsourced resources.”
So, what are the specific advantages of outsourcing? Here are a few that come to mind.
10 benefits of outsourcing
1. Lower labor cost
First off, the most obvious perk of outsourcing is that it helps you save money.
Instead of hiring a new employee, you get to tap contractors who can work for you part-time or freelance. Depending on your preference, you may even work with someone on a per-project basis.
Since they’re not part of your full-time team, you will only have to outlay a fraction of the usual cost. You won’t have to pay for general benefits and insurance necessary with full-time employment. Plus you won’t have to worry about purchasing equipment or renting office space since they’re working from home.
2. Access to a larger pool of talents
When you choose to outsource, you can receive applications from candidates from all over the world. You won’t have to limit your recruitment to local talents from your area and from neighboring cities. The possibilities are endless and finding the right person for the job will be so much easier.
Just make sure to be as detailed as you can in your job postings. Be specific about your requirements and be thorough during the interview process. That way, you can end up with skilled professionals that will capably match your business needs.
3. Greater efficiency
As management consultant and author Peter Drucker famously counseled business owners:
“Do what you do best and outsource the rest.”
That said, you can achieve greater levels of productivity as you outsource. You won’t have to worry about the struggles of learning the ropes of unfamiliar tasks. Instead, you can delegate them to qualified professionals who can get the job done and deliver excellent output in no time.
4. Increased focus on your business
Outsourcing allows you to have more time to focus on what matters most – growing your business. You can free up your schedule and devote more time to training your workers, serving your customers, or finding potential investors.
5. Better customer service
As mentioned earlier, it’s possible to hire people for some customer service tasks. For example, you can assign someone to handle live chats. This means someone will always be available to respond to instant messages on your website.
As a result, this can motivate potential buyers to purchase your product or service. You’ll see an increase in your revenues as customer concerns and inquiries are dealt with in a timely manner.
6. Your business runs 24/7
While it may initially appear to be an obstacle, the time zone difference between you and your virtual assistant can work to your advantage.
Just imagine. Business doesn’t have to stop when you shut your doors at the end of the day.
For example, your graphic designer from halfway across the world can work on your marketing materials while you’re sleeping. Hours later, you get to wake up to an update that the task has already been completed.
Simply put, you get to make the most of a 24-hour day when you outsource.
7. Decreased risks
Hiring a competent professional with a solid body of work ensures that you get quality results all the time. Instead of investing time and resources training in-house staff from scratch, hiring someone with the right set of skills is always a better route to take. You can avoid unnecessary risks and hassles you might encounter otherwise.
8. Project management is made simple
Having a hard time beating deadlines? Well, you will have better chances as you work and collaborate with remote professionals. Managing projects will not be as difficult or complicated. You can count on their expertise for support because they’re always reliable. They always churn out great results on time.
9. Stay legally compliant
Fulfilling compliance requirements can be quite confusing and time-consuming, especially for new business owners. Different forms have different deadlines and failure to complete your local, state, or federal paperwork on time can result in penalties and fines.
In some cases, it may affect your company’s good standing and you might even face legal consequences. Hiring a registered agent immediately solves this problem for you.
Whether you are incorporated in your area or in another state, your agent can represent your company and provide you with assistance. Besides, they have extensive knowledge when it comes to applicable laws and regulations that specifically apply to your business.
10. You get to have a competitive edge in the industry
Being in a competitive market can be challenging for startup owners. By outsourcing important tasks and projects, you get to compete toe-to-toe even with more established businesses in your industry.
With reliable international talent, you can achieve more and expand your business operations. Your work-from-home contractors will keep working around the clock, which can significantly contribute to your growth.
As former Singaporean Prime Minister Lee Kuan Yew once pointed out:
“If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.”
Final thoughts
Outsourcing is definitely recommended for businesses aiming to save on overhead costs at the same time as boosting their productivity. While finding a skilled, reliable professional can take a great deal of effort, it will all be worth it in the long run if you do it right.
The key, of course, is to first determine if your business really needs outsourcing. Try to assess your current talent roster and see which tasks they can proficiently perform. If you need to add more talent, do computations to see if you can afford to outsource in the first place.
Next, make sure that you have a meticulous hiring process. Comb through the applications you receive and schedule interviews with those you think can be a great fit. Ask pointed questions. Learn more about their skills and personality. Try to determine if the person is willing to embrace your company’s values and culture.
In closing, allow us to share with you what Source Control author David Walsh said about the “unstoppable power of outsourcing.” In an interview with Entrepreneur, he said:
“Progressive entrepreneurs realize the unstoppable power of outsourcing to handle aspects of their business that are essential but simply don’t make sense for them to deal with personally.
Small businesses, augmented by a global pool of human capital, can compete directly with the biggest players in their space, and win.”
Best of luck on your quest to find the best remote professionals out there!
Author’s bio:
Mark Rosario is a content specialist who regularly writes for Registate, a Delaware-based registered agent. He has a passion for thorough research and converting business concepts into compelling, informative content.
