Source: The Balance
In our series of blogs on outsourcing, we have discussed why you should look for outsourcing while developing a SaaS product. We discussed the benefits of outsourcing, for example, cost-efficiency, getting specialized service providers, and growing your business, amongst many other outsourcing has.
Every small organization is always on lookout people with good skillset expanding their business. But problem how an can acquire individual such expertise without any significant investments. It here where comes to rescue.
As matter fact, it large companies who outsource almost lot business process. Let us take example Apple inc. Apple outsources most of its business manufacturing process from countries like Mongolia, China, Korea, and Taiwan. Apple does not outsource for saving money, but it does for saving time. This allowed Apple to focus on what it does best, which is listening to customers' needs and developing new technology to meet those requirements.
Outsourcing benefits such as cost and time efficiency and specialized service providers are straightforward. But the question is, how will outsourcing my operations increase my business? Or how outsourcing can be associated with growth?
Here are nine ways through which outsourcing can improve your business operations and deliver growth:-
1. It converts fixed expenses into variable expenses.
Outsourcing can transform fixed expenditures into variable costs. A lot of extra time and money, except the stipend and other joining costs, is spent when we hire new people for specific tasks.
2. We can give more attention to our essential (primary) tasks.
As a result of outsourcing, businesses can devote more attention to critical work. It improves employee results by increasing their efficiency. It enables management to put employees' skills to work in ways that produce exceptional results.
3. It helps in reducing liabilities.
The output of our secondary tasks increases exponentially when our non-core business operations are handled by experts. It greatly supports the primary functions of the organization and even enhances its return. It becomes a double-win situation for the organization.
4. Outsourcing increases the services and quality of the product.
The real magic of any successful process is an account manager and a specialist task force, both of which can significantly improve services. And outsourcing provides you both.
When contacted for updates on the tasks, the account manager is the single point of contact for the organizations. It reduces the headache of measuring delivery time, meeting goals, and reaching KPIs (key performance indicators). This straightforward communication route keeps errors to a minimum and ensures that the company's objectives are not diluted.
Another benefit that outsourcing has, that it does not necessitate the use of internal resources, such as equipment, IT, HR, or training. All of your energies can be concentrated on your core employees while the "extra" job is completed to a high standard.
5. Outsourcing greatly supports the business growth plan.
As time passes, there is a steady increase in the organization's operations and business plan. The growth comes with its new set of challenges, and it is common for any organization to have to deal with a skills gap among its employees. Outsourcing's scalability makes it a good fit for injecting specialized skills into one's workforce whenever you need them.
6. It enhances the efficiency of a company's operations.
Outsourcing brings various new technologies and resources into companies that they would not otherwise have access to. It allows them to run processes more productively.
7. Outsourcing gives organizations the ability to recruit the necessary talent.
Hiring human resources for any secondary operations increases both the fixed costs and variable costs of the organization. It further leads to an unnecessary increase in human force in the organization and reduces the profit margins. Outsourcing saves the time and energy of the organization. It helps them to focus on acquiring talent best suitable for their business.
8. Outsourcing terminates the "can you just" mentality.
Employees are occasionally required to complete other little jobs in addition to their regular duties. Initially, employees are asked to do simple and effortless extra tasks. But gradually, these little tasks start creating difficulties. Employees get diverted from their actual jobs and they start finishing more of these extra chores. Later they are spotted completing the non-important tasks.
Employees can focus on gaining/increasing long-term competitive advantage, such as improving customer service and growing technical expertise, by outsourcing process-heavy activities and projects.
9. Helps in predicting the probable costs
Outsourcing can be done for one-time tasks or on a long-term basis. In any case, you are charged for what you require.
Monthly and quarterly budgeting is also simple if an outsourced company is worth their money since everything is visible and consistent. Financial managers now have a better understanding of how to govern, grow, and evaluate business output and performance in relation to spending.
Furthermore, having such outsourced professionals on board might help limit – or perhaps eliminate – unpleasant invoice shocks. Cost of maintenance is an obvious example in fleet management, and that is why StrideBiz provides monthly fixed-cost packages.
Outsourcing can do a lot more than the points mentioned above. It can even enhance sales and leads qualities.
Outsourcing is mostly about cost savings, but it can also help you maximize your capital. You might not be able to afford to recruit ten engineers in the United States, but you might be able to employ a whole team of engineers with the same level of education from India. This team when instructed properly can easily increase sales and that too organically.
You may have doubts about the performance and experience of the people actually working on your projects. We agree, many of the early challenges in the sector were caused by a lack of training and one-on-one exposure. With time, the trends are changing and the quality of work is increasing.
When these approaches are used correctly, they can help a business run far ahead of management's expectations, and the main reason for this is the outsourcing of some of the most basic labor responsibilities in the organization.
Find out how business outsourcing can help your company grow. Contact us at Stridebiz for a personalized session.