Business & Finance
October 16, 2018

5 Ways Businesses Benefit From Outsourcing Services

It is no secret that small business owners must wear a wide variety of hats. In the digital age, even the smallest businesses have access to a wide range of services that were previously only available to big companies. Small businesses, however, are not the only businesses that can benefit from outsourcing services. In fact, even more big businesses are outsourcing a wider range of services than every before. No matter what size of business you run, here are 5 ways businesses can benefit from outsourcing services.

1. Helps you focus on your core mission

Every business exists to provide a specific function. Every business also has to divide their time between managing their existing business and advancing or building their business. The majority of routine business management functions can be outsourced. Building and advancing your business is what your core team needs to be doing. The more time they spend on projects or tasks that don’t advance their core function, the more likely you are to fall behind the competition. Outsourcing tasks like customer service, payroll or other non-mission critical tasks can free up your team to focus on doing what you do best.

2. Helps you get the right people

If you run a manufacturing business, you may have little idea of what separates a good graphic designer from a bad one or what kinds of skills a competent IT person needs to bring to the table. You will most certainly find out, however, after you hire them. The cost of employee turnover is high, both in concrete and unseen costs. Whether you outsource your hiring to a placement service or simply hire another company to provide you with those services, the likelihood is high that you will get better, more qualified and highly skilled employees or workers right out of the gate.

3. Cuts down on costs

It cannot be denied that many outsourced jobs end up going overseas. One issue that many Americans have with outsourcing jobs overseas is that they feel it reduces the number of US jobs available. The truth is, however, that while around 14 million jobs are currently outsourced overseas by American companies and the unemployment rate hovers at about half that number in the US, just keeping the jobs in the US does not guarantee a solution to the problem. Many of the jobs being outsourced require specialized skills and training that we don’t have enough workers in the US to accommodate. In addition, many countries have a much lower cost of living than the US, which means businesses that could not afford to pay a living wage in the US can in other countries.

4. Provides access to new technologies

Most businesses specialize in a certain field, but that doesn’t mean that they can’t benefit from a wide range of new technologies. For instance, a restauranteur may be up-to-date on all the latest tech related to food service, but may be unaware of new technology that may help them in the area of accounting. Needless to say, new tech that can help a restaurant better manage its finances would certainly be a boon to their business, but a seasoned restauranteur may not even be aware of its existence. By outsourcing services, you place yourself in a far better position to benefit from the latest tech offerings in every field related to your business.

5. Ensures better seasonal management

There are few businesses that do not experience seasonal ebbs and flows. Whether it is staff, equipment or technology, most business need more of something in one season than they do the rest of the year. Outsourcing can help you get what you need – and only what you need – for as long as you need it and no more. If you need more customer service reps around the holidays, you would not only need to hire additional staff, but you would also have to provide all the equipment the additional reps would need. In addition, as soon as the busy season is over, you avoid the hassle and stress of having to let large portions of your staff go or decide who to let go and who to keep.

No matter what type or size of business you run, outsourcing offers many advantages. The truth is, as many hats as small business owners will always need to wear, they no longer need to wear as many. From accounting services to IT to staffing services, there are plenty of businesses ready and willing to meet all of your needs.

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