The business owners would like to have full control over their entire business operations. It is understandable. However, in some cases, outsourcing the requirements helps to gain more profits. Just think about it: if you need software for your company, would you build an IT department for it or hire a third party (outsource) to work on it.
Obviously, the second option is cost-effective, practical, and productive. Businesses are expanding day by day, so as their needs. Practically, it is not possible to handle all the requirements at the same time. So, companies outsource their projects to outside firms.
Before we move on to get more detail on when, what, and why about outsourcing, let’s get a basic understanding of outsourcing.
Outsourcing is the process of hiring a third-party company, agency, or freelancers to perform any tasks with expertise that conventionally were performed in-house by the company’s employees. Besides, If outsourcing is managed by foreign companies (located in other countries), outsourcing also called offshoring. Most of the time, companies undertake the practice of outsourcing as a cost-cutting measure.
Outsourcing can benefit businesses to decrease labor costs. When a company practices outsourcing, it gets the assistant of outside organizations to complete certain tasks for them. The outside companies, typically set up different compensation structures with their employees, then the company which is outsourcing.
When a company should outsource?
For any company, the time and requirements may vary to outsource any project. But, perform time and cost analysis to gauge an overview of whether your company requires outsourcing or not? Often businesses have in-house employees to manage everyday activities, but they may require external staff to initiate new projects.
Sometimes, there is a temporary need for staff to develop software. In this case, outsourcing would be the best option as it will save time and costs. When you are not able to manage the daily business work with the current employees, you should outsource the work.
In addition, small businesses should outsource from the beginning. It will be difficult to outsource half done projects. Sometimes, companies initiate a project, but when they face difficulties, they opt for the outsourcing option. This is a risky way to go for outsourcing because it will cost more. Hence, outsourcing the right requirements at the right time!
What to outsource?
Probably you are already outsourcing some business tasks such as recruiting or background and criminal checks for employment. Nowadays, practically any task can be outsourced, with so many qualified professionals leaving their full-time jobs to work as freelancers or contractors. Besides, there are multiple companies in the market that have established an outsourcing platform for businesses. You just need to send your requirements, and they will get the work done for you. Nonetheless, you should not choose to outsource, just because you can outsource any task.
Often, companies do not differentiate which tasks to outsource. In order to do so, first, you need to understand your business’s core capabilities and your employees’ expertise. Perform deep analysis of the operation that you can handle, and you can’t manage. The tasks, you are not able to handle should be outsourced to get quality outcomes.
Here is the list of the most common Outsourcing projects;
• Accounting & Finance management (along with bookkeeping)
• Payroll management
• Social media marketing
• IT requirements (Mobile app development, software development, web app development, etc.), and many more.
Briefly, a company should outsource the most complex and time-consuming projects. Before outsourcing, analyze your competencies and weaknesses to get the fruitful outcomes. Once you have decided to outsource the right project, you will get immense benefits to grow your business.
Why Companies outsource?
Outsourcing helps you to reduce workload and allows you to focus more on your business operations. From low cost to getting high-quality work, many organizations across the globe outsource various projects to savor its enormous benefits. When a company does not want to invest in resources and infrastructure for a short-time project, they favor outsourcing the project. In some instances, businesses would like to go for outsourcing rather than building an in-house team. Still not convinced? Have a look at the key benefits of outsourcing.
Benefits of outsourcing
- Cost Reduction
Outsourcing enables you to lower expenses on fixed costs, and control variable costs that usually result in significant savings for your business.
2. Focus only on the core business function
In general, companies outsource time-consuming and complex tasks. By outsourcing projects, you can attend to your core business functions. Outsourcing enables your business to gain improvements in your core and critical operations.
3. Access to expertise
Offshore companies offer a skillful team to work on your outsourced project. In fact, you may have the opportunity to interview and select the right candidate for your project. Thus, only experts will work on your project.
4. Risk Mitigation
Your partnering firm helps to alleviate risk factors for your company by distributing and delegating operations. Once you outsource the project, you do not have to worry about any complexities with the project. The partner company will handle all the risks for you.
5. Save Time
When you outsource a project, you get a key benefit to streamline the time-consuming tasks. With an efficient organization, you can enhance accuracy by using the saved time.
6. Gain a competitive advantage
Outsourcing always helps your organization to gain a competitive advantage in the market. When you outsource any project, you are not only presenting your customers with optimal services but also increase your productivity. Outsourcing allows you to outperform competitors who have not yet apprehended the privileges of outsourcing.
In short, outsourcing enables maximizing the expert external resources. It offers extensive flexibility and control, particularly when it comes to unexpected scenarios that may influence your position in the market.
Are you looking to outsource any of your business projects?
You have landed at the right spot. ScaleUpYourTeam has a wide range of experts to work on your requirements. We allow our clients to interview and select the candidate they would like to work on the project. Our experienced team is efficient enough to work on your customized requirements to deliver desired outcomes on time, every time. Contact us to get more details on how ScaleUpYourTeam can fulfill your outsourcing requirements.