Once upon a time, only the ‘big guys’ could consider outsourcing functions of their business. times have changed and now not only can those large multinational organisations benefit but now small businesses can realise the benefits of outsourcing. In fact, they can potentially get bigger gains because of how many new jobs are being created in smaller companies. Is it something you should consider? One of the best ways is to ask yourself what’s in it for your company. What are the Benefits and advantages of outsourcing for you?
Generally held Benefits of Outsourcing
Pretty much there are eight “universal benefits of outsourcing” — Regardless of your business focus, you should expect to realise these significant benefits:
Infrastructure Flexibility — With little or no infrastructure requirements your organisation can add an unlimited workforce.
Business Continuity — Your company will minimise continuity risks due to natural disasters and political events.
Focusing on Core Areas — Enable you to focus on your core strengths and to outsource non-core functions.
Business Expansion Choices Are Expanded —Even the smallest company can venture more easily into new markets and business opportunities because of reduced costs enabled by outsourcing.
Staffing Flexibility — Businesses no longer need to hire and fire due to the ups and downs of fluctuating business cycles.
Risk Management Improvements — Risks due to data losses are shared with or transferred to outsourcing partners with established risk management practices.
Reduced Technology Expenditures — One of the biggest cost savings due to outsourcing is created by eliminating expensive technology and software upgrades.
Offering 24/7 Service to Customers — In a 24/7 world, your customers often want everything “now” or “tomorrow at the latest.” Outsourcing allows you to say “Yes” to your clients’ most urgent demands.
Outsourcing Advantages for Specific Business Functions
There are even more benefits above the top 8 mentioned above which may be more than enough for you. Consider other functions in your business like, operations, human resources, customer service, and marketing.
Operations — First, having an increase in your talented workforce generally means they are capable of higher output. Second, gain access to specialised skills that might not even be available locally. Third, all business services can be delivered faster and with higher quality.
Human Resources — With appropriate outsourcing, small businesses can quickly improve recruiting and new workforce screening.
Customer Service — Customers will almost always be delighted to find your customer service channels open on a 24/7 schedule. Only your competitors will be disappointed to see that your company now also offers more customer service to potential customers than they do.
Marketing — In most small businesses, there is a lengthy list of marketing activities that can be effectively outsourced with a resulting savings of both time and money. Examples include web design, content writing, and brochure design/publishing.
But wait there’s more…
There are also hidden business advantages of outsourced solutions that you should consider beyond the “obvious advantages”:
Increasing your Competitive Edge — when it comes to putting some serious distance between your company and “the other guys” outsourcing provides you with a unique advantage in talent access, capability and cost.
Time is money — Leveraging differences between time zones means you can effectively extend your business working day. You can literally provide “overnight service” on key projects when your outsourcing provider completes work while you and your employees are sleeping.
Expand strategic thinking — You can use the funds generated by savings due to outsourcing to realise business expansion or to reduce pricing and improve customer loyalty or tick off those shelved ideas.
So what next?
The benefits of outsourcing can be substantial for small business owners — if you find the right partner in the right location. Being able to access offshore talent and teams while interfacing with a local company would seem like a complete win – win scenario. If only there was such a company…..