Outsourcing receives a lot of press, some good, some bad. But as a business owner, chances are you’ve outsourced some portions of your business right from the start. Have an accountant help you with your books? Yep, that’s outsourcing.
Outsourcing is defined as the contracting out of any task, operation, job, or process that was originally designed to be performed by someone inside the company. For some business owners, outsourcing is the only way to grow. For larger business owners, outsourcing is a way to grow lean and concentrate on their core.
Outsourced functions can easily be performed by a third party either on-site or off-site. It’s not the same as bringing in a temporary employee to fill in while someone is gone. Instead, it’s contracted work that is given over to a third party for an extended period of time.
There are many reasons a business owner should consider outsourcing a portion of their business.
One of the biggest reasons is for the cost savings. It costs a lot in time, money, energy, and resources to bring in a new employee. And when you’re increasingly spending your profits on employees, it reduces the amount you can spend on your competitive advantage. Outsourcing allows you to hire the exact skillset you require for the amount of time you need.
Especially for small and medium size businesses, it’s important to spend your time working on your core business strategies. Outsourcing gives you the power to put your recourse on areas that provide you with the biggest bang for the buck. It gives management a chance to concentrate on core business issues while hiring other resources to provide you with the best operations for your business.
High Levels Of Expertise
We don’t know what we don’t know. And to educate yourself to competency can take a lot of work. By outsourcing certain areas of your business to other experts in their fields, you can ensure you are getting the best resources and the best services to help drive your business to the next level.
Many businesses have seasonal or cyclical demands. Outsourcing can provide flexibility when you need it most, to help stabilize the varying demands of your business. It can also bring in expertise at times when you need certain skills.
In addition to accounting, the most common outsourced areas include:
- Information Technology Functions
- Network and Telecommunications
- Human Resources
Think of outsourcing as a way to help you achieve all you’ve strategized in the most efficient way possible. You get the services and skills you need at the lowest cost to your company as possible.
Have you considered outsourcing for your business?