5 Ways Outsourcing Can Increase Your Bottom Line
Is your company reaching its business objectives?
To be successful in business, your team will need collective effort from a group of talented individuals. Juggling most, if not all, tasks due to lack of manpower will leave you with no room to focus on more important things… But outsourcing can change that.
According to a 2016 Global Outsourcing Survey by Deloitte, outsourcing allows businesses to lower their overhead cost. In fact, 59% of companies surveyed stated that outsourcing is used not only to increase revenue, but also as a cost-cutting tool. However, outsourcing is much more than just a money-saving option. Here are other ways it can help you meet business needs and improve operations.
1. Focus on core tasks
When a company starts to grow, it’s back-office operations tend to expand. This can tie up human and financial resources as they bear the expense of core activities. Outsourcing crucial but mundane tasks will allow the company to refocus their in-house resources on profitable endeavors without sacrificing service quality.
For instance, if there are too many projects but not enough people and hiring far exceeds the budget, outsourcing workers can help bring it back under control. Working with an outsourcing partner enables the business to manage operations to:
- Work on other more important tasks such as bringing in more clients.
- Lessen the stress of core staff, which can help improve employee retention.
- Transfer liabilities to an outsourcing service provider as less exposure to risks is never a bad thing in business.
2. Innovate and promote growth
Sometimes, overhead costs of operations can be high. But you may still want to offer these products or services to satisfy customers, expand the business, or compete in the market. If the cost of expansion to handle those operations is too expensive or would cause inefficiencies for the business, outsourcing can be a great option.
Staff resistance can be an obstacle to drive innovation and improvement. However, if you outsource that innovation to an expert, the effort of implementation is lifted off your in-house employee’s shoulders, resulting in benefits.
3. Allow staffing flexibility
Outsourcing lets companies that have seasonal demands to bring in additional workers whenever necessary. Your company can then release your outsourcing service provider when operations slow down again, maintaining the business’s flexibility. For example, you can outsource additional workers when your accounting department is in need of help during tax and auditing season.
If you plan to outsource infrequently, make sure to work with the same outsourcing company for consistency. Doing so also provides a level of continuity to your business while reducing the risks of poor results, especially if you’re only outsourcing for a short time.
4. Guarantee best practices
At first, it seems that outsourcing is a straightforward “fix this, do this” outlook. But as with any industry, outsourcing providers make sure that well-established SOPs (Standard Operating Procedures) and best practices are in place.
Outsourcing providers are aware that failure to follow SOPs can impact their brand and reputation as a business. When you outsource, your business gets an assurance that industry standards are met. Your company doesn’t have to look around in the area to hire workers, as this will only take plenty of time and money. If your business needs a person with a specific set of skills, outsourcing is the way to go.
5. Promote sustainability
Energy savings is another added benefit of outsourcing. Since tasks are performed out of the office, you can save on energy used for lighting and equipment, including the energy needed to travel to and from the office. Moreover, the cost of in-house employees’ unconscious (but costly) energy-wasting habits, such as leaving computers plugged in and the lights on overnight can be avoided.
Going “green” is now becoming a trend, and it’s not something companies should overlook. It’s the proper thing to do for the environment and the best way to reduce material and energy costs for your business. Rather than buying equipment that will be used for a short period, you can outsource the work so that there’s no need to make a purchase for a job that can be done in a few days or months.
Take the Leap
Choosing the outsourcing route is a big decision and something you shouldn’t take lightly. But once you take the big leap, you’ll realize how it can make your business become more efficient, profitable, and grow faster.
Ready to get started? Drop us a line by going to https://onsource.co/contact-us/.