- Do you need a new website, but you lack time to do it yourself?
- Do you have a small team and need help with your marketing?
- Maybe your business needs customer service assistance?
Whatever the need, outsourcing can help. With a little research and planning, you can find the right outsourcers to help you take your business to the next level.
When you outsource, you can get your business working for you 24/7 while freeing up some time to focus on the parts of your business that only you can do.
No matter your business or goals, there is likely a way outsourcing benefits your company. Here are some key statistics on outsourcing
- Almost 54% of all companies employ third-party support teams to communicate with consumers.
- 71% of the financial services industry outsource or offshore parts of their services.
- Last year, firms worldwide spent $75.2 billion on security outsourcing.
- In the United States, there are 59 million freelancers.
- Every year, around 300,000 jobs are outsourced from the United States.
- 78% of organizations worldwide are satisfied with their outsourcing partners.
You can now see the advantages of outsourcing and how it can help improve your business. Outsourcing can significantly increase your business’s productivity while accessing resources that you may not otherwise be able to employ in-house.
Useful Article: Outsourcing vs. Offshoring – Learn How They Are Different
What are the advantages of outsourcing? (Reasons to Outsource)
It doesn’t matter if it is IT services, human resource functions, or customer service, there are many reasons why outsourcing is important in business. They are as follows:
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Access to a Skilled Staff Globally
By outsourcing, you can have access to a more skilled and experienced team than your in-house team. Having a professional team with you can exponentially improve your business’s work quality. Outsourcing abroad allows you access to skilled professionals located in different parts of the world.
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Lower Operation Cost
Are you searching for a way to cut back on your company’s operational expenditures? The need to save money is a common motivating factor for outsourcing companies. You can lower your operating costs by using an outsourcing business that offers the same (or better) quality at a lower price.
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Make Room for Resources
Some companies can run on a lean staff, with certain employees fulfilling multiple roles. Other companies may need additional resources to fulfill their goals. By outsourcing, you can free up room in your company’s budget to make room for the resources that you need to grow.
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Avoid Risk and Save Time
A company can save itself from certain risks by outsourcing. You don’t have to worry about the same kinds of risks that in-house staff may face if you do this. You can also save yourself time and resources by focusing on the core areas of your business.
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Tax Advantages
Offshore outsourcing companies can help you to save money on taxes. If your business is traveling back and forth between the United States and another country, certain tax schemes may help you save money.
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Get Expertise
Do you have a complicated project that needs to be completed? Outsourcing can provide your business with the expertise needed to succeed in complicated projects.
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Access to Emerging Technology
It can be difficult for a company to keep up with the latest technological advances. But with outsourcing, you can access cutting-edge technologies that may not be available to your business’s internal team.
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Gain Entry into New Market Segments
It becomes easier to expand into new markets when you outsource your business and establish a local presence before the competition. You can also scale up your business with the help of third-party outsourcing services.
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Gain Access to Resources You May Not Have
Even with a large in-house team, some companies may feel like they do not have access to their resources to succeed. Though you may not be able to match the size of your in-house staff with an outsourcing company, you can still gain access to resources that you would not otherwise have.
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Save Yourself the Stress of Hiring Employees
When you outsource your work to a company, it can take many responsibilities off of you. You will no longer have to worry about finding and hiring new employees.
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Focus on Core Business Activities
One of the main reasons for outsourcing is that you get to offload time-consuming and routine tasks so your teams can focus more on innovation and growing your business.
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Scalability and Flexibility
Outsourced teams aren’t hired by you. They are assembled by the service provider according to the scope of work. So, if there is an increase in the workload, they can scale up the team. They will do the opposite when there is less work. This easy scalability and flexibility outsourcing companies provide is especially beneficial for startups and growing businesses.
Now that you have read the pros of outsourcing, consider if it can be a positive change for your business. Outsourcing is not something that every company will need, but some companies may greatly benefit from outsourcing.
When is Outsourcing the Right Choice?
A look at all the advantages of outsourcing may make you consider trying it out, but you have to remember that it isn’t always a one-size-fits-all solution. However, in the following situations, outsourcing can be the best option for you:
- When your team is stretched thin and overworked, and you’re missing deadlines.
- When you lack specialized skills within your organization (e.g., 3D rendering, photo retouching, video editing, customer support, or multilingual eBook formatting).
- When there is a fluctuation in the work, making it difficult to justify full-time employees.
- There are times when you need to cut costs without compromising on the quality.
- When you need to need a team to help you quickly bring a new product/service to the market (also known as Speed to Market).
To be sure if outsourcing is the right solution for your business, start small. Outsource a non-critical project as a test, and assess the results. But, most businesses that outsource their work quickly realize the value and flexibility outsourcing brings.
Common Misconceptions about Outsourcing
Even though outsourcing has been around for decades, there are still some companies that hesitate to use this brilliant service because of some persistent myths. Let’s look at what these myths are and what the truth actually is.
Myth #1: “The quality won’t be good enough.”
Everyone wants the best quality service. That is why you need to be very careful about who you choose as your outsourcing partner. We at ProGlobalBusinessSolutions, for example, follow strict quality assurance processes and assign experienced professionals for every project we take on. If you, for some reason, aren’t completely satisfied with the results, we also have a generous revision policy so you can request changes to the work until you are.
Myth #2: “There won’t be proper communication.”
For real-time, transparent, and effortless communication, outsourcing companies like us make use of project management tools like Slack, Trello, Jira, and Zoom.
Myth #3: “My data won’t be secure if I outsource.”
Data security is a top concern for many companies because it’s not just their data but the data of the customers that they are also worried about. However, outsourcing agencies, like us, usually sign NDAs, comply with GDPR, and use secure file transfer methods to protect client information every step of the way.
Myth #4: “Outsourcing is only for cost-cutting”
While it is true that outsourcing helps cut costs, there are other, more significant advantages, like access to specialists, improved efficiency, and more time to focus on the core business.
There are other myths, of course, by these are the key points that give companies pause before outsourcing. So, instead of letting these myths get in the way of your business’s potential growth, study various outsourcing companies, see which one suits your needs, check out their portfolio and track record, and make the right choice.
Real-World Examples of Outsourcing Benefits
YouTube Video Editing
A mid-sized video production agency needed help managing post-production for their YouTube channel. By outsourcing their video editing to us, they were able to consistently post high-quality and engaging videos. Through their partnership with us, they were able to focus on video pre-production and filming, which are their strong suits.
Customer Support
One of the major services outsourced, especially for IT sector companies, is customer support. One of our clients, a US-based IT company, brought a new software product to market to improve communication flow in an organization. They approached us for our outbound call center services, where they specifically requested cold calling procedures for lead generation. During the project, we were able to greatly boost their sales.
3D Modeling
A London-based company involved in producing custom-engineered and innovative car products approached us for our 3D modeling services. They wanted to redesign and manufacture a few car parts, and they gave us only 30 days for the project. Though the time frame was quite short for the amount of work required to be done, we were able to complete the work with great precision and excellent quality.
Need help outsourcing? Contact us today. We can help you make this decision the best for your business!
Ready to outsource your project requirements?
Though some pros outweigh the cons, it is a good idea to look at your business to see if outsourcing can be a valuable asset. If you outsource, some pros and cons will come into play, but it can be a successful strategy for your business if you choose the right professionals like ProGlobalBusinessSolutions.
What types of pros and cons have you faced regarding outsourcing?