Unlock the Advantages of Outsourcing Jobs Now
While business owners wear many hats, you simply can’t do it all by yourself, especially if you want your business to grow and to thrive even more. All owners of businesses, whether large or small, should know the advantages of outsourcing jobs.
Outsourcing is an effective alternative for many business owners who need help with their everyday tasks or need a special project completed, but just don’t have the time or the money to hire a full-time employee.
If you run a business, you’re likely always scouting for ways to cut costs while maximizing your effectiveness and increasing your bottom line, especially as the economy struggles to fully emerge from a recession.
Hiring employees to build or to expand your business may not be a viable option because of the cost. If you’re like some small business owners, you may be leery of handing over responsibility for your business tasks to others.
What is Outsourcing?
Outsourcing is the process whereby a business or an entrepreneur contracts another business or an individual to complete a one-time project, such as writing a book or a speech, or an ongoing task, such as producing a monthly newsletter or payroll. Most business tasks, from accounting and legal to payroll and information technology can be outsourced.
Many entrepreneurs and small business owners have begun to realize the benefits of outsourcing their communications needs. The needs can vary from writing, marketing, public relations and other areas of business tasks. These needs can be outsourced to other businesses that are led and staffed by professional people who are experienced in their respective fields.
While many people have heard of offshore outsourcing, when a company outsources jobs to overseas companies, some are not aware that many businesses and freelancers in the United States also provide the same services.
Is Outsourcing the Ideal Solution for Your Business?
Because of numerous factors including the cost and the time involved with hiring and training, hiring employees is not always a viable option, especially for time and cash-strapped small businesses and entrepreneurs. Outsourcing provides an affordable, effective alternative that offers considerable advantages over hiring employees, including:
• Focus on your strengths – Outsourcing allows you to focus on your strengths while having others take over tasks in which you are weakest. Focusing on your strengths will also save you time that you can then devote to your business’s most important tasks.
• Increase your profits – Unlike with an employee, you are not responsible for withholding taxes, paying unemployment tax, and providing benefits, including health insurance, when you outsource.
For example, in addition to having to pay unemployment taxes and provide benefits, you’ll likely have to hire someone to administer benefits and take care of payroll if you have employees, another cost you’ll save by outsourcing. Saving on those costs will allow you to increase your bottom line.
• Cut your costs – When you outsource, you typically don’t have to pay for office space for the company to which you are outsourcing, nor will you be responsible for providing the company with equipment, such as a computer, a printer, a fax, and other tools that are needed to complete a job.
• Save money on short-term projects — You may only need help for a short period, such as several weeks or several months, and hiring and training employees for that short period could result in significant costs.
Hiring temporary employees can be a risk because you can’t be guaranteed you will be satisfied with the employees or their results. By outsourcing you determine with whom you will work, for how long the project will last, and you won’t have to worry about an expensive hiring and training process.
• Get started sooner rather than later — Hiring employees generally requires training, which takes time and costs money, and a learning curve is to be expected. Outsourcing allows you to start projects without any or very little downtime.
When you contract to an outside business, that business is typically ready to go very quickly which, in turn, saves you time and allows you to complete projects sooner rather than later. If a business that you are interested in can’t begin work quickly, you can simply move on and find another qualified company that can start when you’re ready.
• Enjoy flexibility – When you have employees, you still have to pay them, even if there is not enough work to keep them busy during the workday. When outsourcing you only pay when work is being done. In some instances, especially if you are contracting a writing firm, you will be paying per project or per word rather than a per hour rate, which will allow you to effectively budget your outsourcing expenses.
Outsourcing gives you a global pool of companies with which to work. You might find the perfect business to work with and that company might be halfway across the state, the country, or even the world. Technology today allows you to work with businesses anywhere in the world.
Pros and Cons of Outsourcing
When starting a new business you will soon come to learn that there are tasks that will keep you very busy but don’t create much positive results. There can be a lot of routine tasks that must be completed, but can eat up hours of your time keeping you from concentrating on the things that matter the most to grow your business.
Thus, it is beneficial to outsource certain services to other companies. When you hear the word outsourcing, the first thing that you think of is how you can save costs. This is the first and the widely known advantage of outsourcing.
• Save on time – This goes hand in hand with saving costs. Outsourcing services to outsourcing companies will save you vital time. In the long run, you will have saved a lot of time. Cost saving is the other main pro of outsourcing services to offshore or home grown companies. The cost of providing the technical services yourself might be too high, but outsourcing the services reduces the cost to manageable amounts.
• It shifts your focus to the main objective of the business – When you outsource services to another company, you will be able to focus on the main function of the company. For instance, if you are running a manufacturing company, you can choose to outsource payroll services or any other services to a different company. As a result you can concentrate on improving the quality of your goods and increasing customer satisfaction.
• Outsourcing services implies that you will be getting the best services – Offering quality services that leads to customer satisfaction and that in turn leads to more sales that will increase the profits. Therefore, your business will run efficiently.
When the customers are satisfied, they will give you a positive feedback which will increase your rank on the Better Business Bureau. Hence, outsourcing any type of services is very important for the success of your business.
• Confidentiality issues – Outsourcing services means that you will have to hand over information to the company so that they can be able to serve you more efficiently. When you hand over confidential information to them the information is no longer confidential as a third party has come into the picture.
• The main concern lies in outsourcing accounting services – When outsourcing accounting services you lose direct control of the services outsourced unless you stay hands on and get appropriate reporting information on a constant basis.
These are the main pros and cons of outsourcing. But the pros are more than the cons hence outsourcing is advisable to companies that want to focus on their core business. Generally, the advantages of outsourcing jobs can outweigh the disadvantages.
Benefits of Outsourcing
It is better to outsource any business activity that is necessary, but doesn’t promote or grow your business. Once your business gets to a certain point, you should delegate the routine activities to someone else so you can work on activities that will result in creating growth of your business.
Effective Use of Human Resources
Almost every company will start small, with a few or no employees. Yet, the competence needed to run a company and the many tasks and processes behind this operation is the same, whether for a small company or for a very big one. The size of the workloads will differ, but it still remains that all these functions will need to be attended to.
Outsourcing allows for such task management while retaining the small workforce. Tasks that will take away from the main purpose of the company can be outsourced to companies that actually specialize in the given area. Employees in the company can thus focus on the main purpose of the business and their own area of expertise. Other employees are then not needed to look after the aspects that the outsourcing recipient is taking care of.
No Time Wasted
Another benefit of outsourcing is that the team that will receive the project stays ready to go and can deliver work at a quick turnover rate. No time is wasted in setting up a team and training them as to what is expected of the project.
More Attractive to Investors
A company that constantly reinvests money in itself and shows good profits will ultimately be attractive to investors. Outsourcing can help a company stabilize its costs and even diminish its costs in many instances.
Outsourcing allows for reducing risks. The teams that handle outsourcing are better equipped to dealing with the risks inherent to their area, as opposed to the company that is not specialized in said area.
Faster Deliveries and Better Consumer Satisfaction
Outsourcing teams get on the job the minute it comes to them. When they finish they send it back to the company; as simple, and as speedy, at that. Faster deliveries of results can also lead to improved customer satisfaction if customers’ needs are being met successfully and speedily.
In conclusion, there are many benefits to outsourcing. On the whole, it can be said that companies who outsource increase their own efficiency and reduce their cost considerably. That in its self would be a good incentive to consider outsourcing.
If you may be considering the idea of outsourcing some of your business tasks, I would suggest that you take a few minutes to identify and write down those mundane tasks that seem to eat up your time and the tasks that you are not skilled to perform.
After you have identified those tasks that do not directly impact on the growth of your business, you can then take advantage of outsourcing jobs to the experienced people who can get those tasks done.
Please feel free to contact me if you need help with anything. Just make a comment below or you can always get in touch with me through wealthyaffiliate.com (here is a link to my profile).
Founder of Mom’s Trusted Affiliate