Outsourcing has become a hot topic for businesses of all sizes, particularly because we’re learning to operate amid a global pandemic.
As with any decision that might impact the health of your business, you need to consider the pros and cons. In this blog, I will take you through the reasons why you should consider using outsourcing to boost your business.
Why Outsourcing Makes Sense for the Modern Business Owner
When you outsource, instead of hiring new employees, you contract with an outside party. This can be an occasional requirement, or you can turn it into a regular interaction.
Overall, outsourcing can benefit businesses of all sizes in a number of ways. Here are some of the top reasons why I recommend outsourcing to my clients:
1. Refocus Your Efforts.
When your business starts to grow, you might find yourself spending time on smaller activities that take up a lot of your time. This can apply to your existing employees too. When you hand these smaller, more mundane tasks over to a third party, you can refocus your efforts on tasks that will help your business expand even further.
2. Lowers Operational Costs.
When you hire new employees, there are a number of new costs to factor into your budget. This includes the cost of finding a new hire, healthcare, equipment, payroll, taxes, and general overheads. When you outsource, you only really need to focus on hiring, onboarding, and paying a new recruit. No need to provide them with anything else to get the job done because those responsibilities fall to them.
3. Cyclical Flexibility.
When your business doesn’t require certain staff and expertise throughout the year, you end up spending more than is necessary. Outsourcing offers cyclical flexibility. So, when work slows down, you have the option to reduce business expenses accordingly.
4. Fuels Growth.
With the reduction in general overhead expenses, businesses have more to spend on growth. Perhaps you have been looking for new ways to increase customer satisfaction rates or to expand your business model – outsourcing can help you do that.
Recommended Read: How to Choose the Best Outsourcing Platform for Your Business
5. Decreased Need for Restructuring.
A common issue in small to medium organisations is poorly managed departments and out-of-control costs. Instead of spending time and money on restructuring to correct the issue, outsourcing can help fill in the gaps. Outsourcing provides business owners with management skills that might be lacking. For example, a marketing department with too many projects and a small team can benefit from hiring a project management contractor.
6. Upskilling Opportunities.
Bringing in a third party to assist on a project gives your internal staff the opportunity to upskill. Not only does this get the project done, but it ensures your staff knows how to handle projects like this themselves going forward.
7. Decreased Risk.
When employees leave your company, there may be a period when nobody’s available to handle their projects or workload. Outsourcing helps reduce risk by providing business continuity, giving you time to find someone new for the job. You may even find that sticking with a third party makes more sense instead of onboarding someone new.
Making Outsourcing Work for You
Outsourcing offers a number of excellent benefits that make it easier to expand. However, it also gives business owners and entrepreneurs more room to innovate and disrupt their industries.
When you consider the benefits of outsourcing, it’s important to look beyond the general cost-saving and skill gap fulfillment. Look at outsourcing as a business expansion tool. What are your goals for the next 5 years and can outsourcing speed up the process of achieving those goals?
Get your copy of Outsourcing for Success to further discover how outsourcing can change your business growth trajectory.