Outsourcing has changed the way businesses work.
Over the years, it has become a critical part of business management and an important ingredient in business growth.
According to a 2019 survey conducted by YouGov, 70% of British businesses have outsourced key services to 3rd parties, with the majority looking to delegate IT, payroll, printing and accounting tasks.
So it’s no wonder then that the global outsourcing market has doubled from $45.6 billion in 2000 to $92.5 billion in 2019, and looks set to continue growing.
But why do businesses outsource?
Here are 10 reasons…
1. Access to expert knowledge
Your in-house team might be great at what they do, but there are tasks that require specific skills, expertise or knowledge that a regular in-house team can’t handle.
For example, if you need to create a website or improve your existing site, you need a web developer to do this.
By outsourcing tasks such as this, businesses are able to reduce costs and improve the quality of output.
After all, an expert can usually do a task faster and to a higher standard.
2. Get things done fast.
We already mentioned that tasks will be done faster by using experts, but you’re also freeing up your team’s time. Therefore, other tasks no longer need to wait in a queue with everything else.
The outsourced tasks get performed faster, as do the in-house tasks: win-win.
Time-consuming and repetitive tasks can often be the best ones to outsource.
3. Focus on what matters.
In business, and in life, you only have so much time. It is critical that you focus that time in the areas which generate the most value for your business.
Therefore, outsourcing the less important business processes enables your staff to concentrate on strengthening and improving the processes that help your business grow.
… or on what you enjoy doing.
4. Minimise the risks.
When you work on tasks which you are experienced in, you are more aware of the risks involved and can take actions to avoid them.
By outsourcing specialist tasks to people who have the right level of expertise, they can more easily plan and mitigate these risks.
5. Reduce costs.
Outsourcing some of your business processes is usually a lot cheaper than hiring a permanent full-time employee. Aside from saving time and money on recruitment, your profit will also extend to lower overheads including office space and equipment. Neither will you need to pay for employee training, medical care or other benefits you give to full-time employees.
6. Work while you sleep.
Full-time employees are tied to certain working schedules, which means that the work stops once the shift finishes.
By outsourcing work to partners in different timezones you can keep your business running even while you’re sleeping.
7. Streamline processes.
Outsourcing provides businesses with dynamic and intuitive platforms that will allow you to easily oversee the progress of work, what has been completed, due dates and payment schedules.
By having this visibility of what is going on you can more easily identify ways of streamlining the process.
8. Take advantage of new technology.
Technology is evolving day by day, with big data, cloud computing, and marketing automation increasing in popularity.
Why waste time training people in these technologies when you can outsource them to people who already have years of experience?
9. Plans will be more targeted.
Outsourcing enables you to plan and execute more targeted projects that would be impossible to take on otherwise.
As a result, you will be able to test out new ideas without impacting your core business.
10. Enjoy freedom and peace of mind.
Working with a reliable outsourcing partner will give you peace of mind, knowing that the tasks are being handled efficiently and effectively; even without your guidance.
Whatever your reasons for wanting to outsource, the key to a successful outcome is to be clear on the scope of activities you wish to outsource and choose a partner who you trust to deliver the results you desire.
We recommend that you start small and gradually expand the scope of work once you have gained the necessary confidence and trust in your provider.