Outsourcing is a great way to cut costs while still maintaining quality!
It’s true that outsourcing often gets a bad rap, but in reality it can be an excellent strategy for your company. Many companies, including big corporations such as Microsoft and Facebook outsource various tasks, often to third-party providers around the world.
Outsourcing allows you to focus on the things only you and your team do best, rather than spending time and resources on tasks which could be done by someone else at less cost. It also means avoiding the headache of managing staff members who are not part of your core business.
In this article we will explore five ways in which outsourcing can help reduce expenditure without compromising on quality.
Pay Only for What You Use
If you have a specific task which requires extra support, but the rest of the time you have no need for a member of staff to complete it, then consider outsourcing so that you don’t have someone on permanent standby handling a task they will only perform once every six weeks. This way you will pay only when necessary.
This is perfect for businesses that don’t really see a lot of increased activity for majority of the year. They don’t have to hire permanent employees for tasks that won’t be around after one or two months.
It also helps for demands that happen occasionally. It’s common for companies to have their own IT department to address tech-related problems such as computer malfunction or installing new software. However, these don’t happen often, especially for businesses that don’t use a lot of electronic devices to operate.
For instances where IT support is needed by the business, they can outsource the task to a third-party provider.
Skilled Workers for Half the Cost
People who are skilled demand higher pay which they deserve, but not all employers may be able to provide. Outsourcing offers a cheaper alternative. Because the worker is not in-house full time, they don’t get the benefits that permanent employees are given.
Moreover, most of the time, you’re only paying for a portion of their every day. These workers take on different clients. This arrangement would be much cheaper than if they were your full-time, in-house staff members.
It doesn’t matter if the worker is from the same country, or hails from abroad. The people hired to offer these services are knowledgeable about their field and well-trained. They will provide quality output all the time.
No Overhead Costs
If you’re running a small business, even the smallest change can be felt down to your bottom-line. That’s why outsourcing is an extremely beneficial option for small businesses with little capital to spend on staff members who don’t directly contribute towards sales or marketing.
For example, if you need someone to answer your phones and schedule appointments, they don’t have to be full-time or work at the office. They can do their tasks virtually from home, even if they live half the world away.
Consider hiring part-time workers through Fiver, Upwork, Craigslist, LinkedIn, etc. These sites help connect freelancers with employers at a much faster rate than through other traditional channels such as job boards.
Outsourced tasks are not only more convenient for businesses with little capital, but also takes up less space. That means you don’t have to spend money on adding on extra office space or improving the existing facilities.
No Money Spent on Training
If you hire local staff members, they’ll need some form of training. You’ll either need to provide the necessary education yourself or send them off for training courses which will cost more than you’re willing to pay.
On top of that expended effort and time, there’s no guarantee that the staff member would be able to do what your business needs or else it would’ve been cheaper just doing it yourself right from the start.
With outsourcing, you already deal with a trained professional who is good at their job and know exactly how to work with different clients. You may need two hours to communicate what you expect from them, but they’re already prepared to work.
It’s much faster, and no time or energy is wasted on training. In business, that saves money.
There’s still a lot of things that people don’t know about outsourcing, but many businesses are warming up to the idea. The benefits, including the potential to help save costs, are far too attractive to ignore. Now that you know more about this topic, it might be time to consider outsourcing some of your business activities.