What are the Business Benefits of Outsourcing?

Outsourcing might not be the first thing you think of when you want to improve your business. In fact, some people shy away from this idea altogether because it feels as though bringing everything in-house is a much better option in terms of efficiency and even a cohesive feel to the business.

Yet in reality, trying to do everything yourself could be the worst idea any business owner could have, at least if you are trying to grow your business.

Read on – you might be surprised at some of the good ideas available when it comes to using outsourcing to benefit your business.

Increased Efficiency And Productivity 

One of the biggest advantages of outsourcing processes to a third party is that your business will instantly become more efficient and productive.

Of course, the key to ensuring this is the case is to only outsource processes that aren’t considered the core of your business.

This means that you should outsource the things that are important but that are universal and that all businesses have to do – things like accounting and finding good managed IT support, for example. 

When you do this, you’ll be left with the core elements of your business; the things that make your specific organization unique. These should not be outsourced because you need to put your own stamp on them (although training people to do the work in-house makes a lot of sense).

In this way, you can ensure you keep the integral elements of your business, and you can focus on them entirely, knowing that everything else is in hand. 

Cost Savings

Cost savings may not seem to make a lot of sense as a benefit that comes with outsourcing some of your business processes, but it can definitely be the case. Although you will be paying for the services you outsource, this can be a lot less expensive than hiring people to do the work in-house.

A full-time salary is a big drain on a business, especially when you factor in the perks and benefits you’ll need to include, the taxes, and the fact that your employee will want to take vacation days and will be sick sometimes, meaning you won’t have them there to help you. 

Not only this, but it’s expensive to hire people (whether you use a recruitment agency or do it yourself), and you’ll need to ensure you offer good training and professional advancement opportunities throughout the life of the employment. As you can see, this can add up quickly. 

When you outsource rather than hire someone, you will only pay for the work that needs to be done – you won’t be paying for someone to work full-time if that’s not necessary. Plus, there will be no additional costs; you’ll just pay for the process you’ve outsourced to be completed.

This can save a lot of money compared to having staff. You can then ensure that the employees you do have are the best, as you’ll be able to afford to pay them more and give them more incentives, for example. 

Access to Expertise and Technology 

If there is one thing you will know for sure about outsourcing any business tasks, it’s that the third party you engage will be an expert in that task. This is what they do every day, and if you choose a company that only works on one thing, you can be sure they will have all the knowledge and expertise they’ll need to do the job to a high standard.

This means choosing specialist accountants, for example, or ensuring the managed IT company you choose has experience in your sector and can do exactly what you need them to do. 

You will need to do research and check that the company you are going to work with can do everything you need them to, but if they can, you’ll instantly gain access to expertise and technology you would not have been able to have before.

In this way, your business can more easily move forward, and you’ll potentially be further ahead with more information and knowledge than your competitors. At the very least, you’ll be at the same level as them and not lagging behind. 

Flexibility and Scalability

Another fantastic benefit of outsourcing is that you will have a much more flexible business that you can scale up or down as you need to. You will therefore be able to meet any changing business needs and ensure you keep your finances in the best shape you can.

If you suddenly have more customers you can increase how much you outsource to either one particular company or to a variety of them, depending on what it is you need. If you are going through a quiet time for any reason, you can use the outsourcing partner you’ve chosen much less and only pay for what you need. 

This is great in terms of saving money when you need to (or keeping up with demand when necessary and therefore making more money), but it also means you can keep your customers happier.

You won’t have to turn away work because you’re overwhelmed, helping you gain a much more positive reputation, and ideally, word-of-mouth marketing will take place too. 

Risk Management  

When you outsource in business, you can add a layer of risk management to ensure that you are working in the best possible way you can. When you engage an outsourcing partner to help you, they will be able to manage the risk in the area they are working in; you won’t have to worry about it at all.

Of course, this does mean that you need to choose the right partner from the start, but once you have done that, your business will be a lot less vulnerable.