If saving money without sacrificing quality is one of your priorities, then outsourcing may be the best move for you. Outsourcing is a strategy in which a business or organization has its major functions contracted to an outside, specialized, and efficient service provider. In some cases this involves the transfer of employees from the business to the outsourcing company.
In the past, one of the main reasons a business or company would outsource was due to cost-reduction. This is still true in today’s business world, however there many more reasons for companies use outsourcing.
REDUCTION AND CONTROL OF COSTS
Firstly, the clearest benefit of outsourcing is cost reduction. Outsourcing will enable your business or company to lower expenditures on fixed costs and control other costs which can enable you to garner significant savings. Often times, outsourcing companies can get your job done and possibly even at a better quality to boot.
Costs are reduced simply due to the wage differences in western and Asian countries, resulting in work which could be done in Sydney could instead be done in the Philippines at a greatly lesser cost. Costs are reduced without sacrificing quality of work, meaning you get more than you’ve paid for when you outsource.
ACCESS TO A WORLD OF TALENT
More often than not a company’s talent pool is limited to its general area, people who are capable of driving or commuting to work. This, clearly, makes for a small scope for exceptional individuals who might be exactly what you are looking for. However, when you outsource, your scope for talent has widened to a global scale.
Giving you access to a global knowledge base which delivers the same quality of outputs, if not higher. All this while employees are not limited to a job within commuting or driving distance.
STREAMLINING TIME-CONSUMING TASKS
Outsourcing employees often have an excellent skill set, enabling them to handle various tasks which could be assigned to them. This not only means that you can save money when you outsource, but due to the high-quality of the work being done, and the work that could be done means that you could save time as well.
With proper delegation of tasks to your outsourcing company, you can increase the accuracy of which time-sensitive or time-consuming tasks your employees will accomplish and focus on. By delegating the more mundane, time-consuming tasks to your outsourced talent, you can have your in-house employees focus on the more high-value, growth-centric tasks at hand, you can grow your business faster without giving up the various functions needed to maintain the business.
MAXIMIZING USAGE OF EXTERNAL RESOURCES
A business or company can handle the large amount of tasks associated with it, however, a company can only have so many hands working on something, so in the event that an issue or situation begins to threaten a company’s standing in the markets, all of its employees are tied up with other tasks, and can’t address the issue.
A large benefit of outsourcing is that you are provided with plenty of flexibility and control to meet whatever hurdles come your way, especially those unforeseeable situations which may have an adverse effect on your market position. These kinds of scenarios can occur at any time, even while the people who could respond to this situation for your company are tied up with other tasks, making them either place those tasks on hold while they focus on the major issue at hand, or having them finish those tasks and possibly have the situation go farther out of hand.
IMPROVED EFFICIENCY AND PRODUCTIVITY
Many company operations and functions require plenty of manpower in order to run and maintain an efficient organization, thus it is normal that a company would dedicate employees to be assigned to these different functions. The problems surface when a company assigns more responsibilities to its employees.
It is not uncommon for a company to add more tasks for employees, however, a recent study in 2016 states that multitasking has adverse effects on the human brain, such as causing a 40% loss in productivity due to making mistakes, an increase in stress, and making memory suffer. In order to avoid these adverse effects and keep employees in optimal working conditions, a company would outsource these sorts of trivial tasks to give their employees more room to focus on main tasks. Keeping their focus, and increasing their productivity and efficiency which lets them accomplish more tasks and meet deadlines without the need to request overtime work.
Outsourcing brings many benefits and many companies have used outsourcing for reasons like the ones mentioned above, to keep their employees happy and productive, save costs, save time, and grant them access to a world of talent, not limiting themselves to their local market.
Reach out to us now at Remote Staff to learn more.