Why Outsourcing Can Save You Big Money
Posted on Thursday, October 3, 2019 and filed under Articles
By now you’ve no doubt heard about outsourcing, but is your business taking advantage of the cost and time savings that outsourcing can do for you? With so much competition, no matter what your business niche is, you can’t afford to ignore the many ways that outsourcing can benefit your business.
Small businesses and start-up companies are those that get the most out of outsourcing – it helps your business grow so you can compete against larger companies. When you outsource services and projects, you’ll be able to focus on the other critical functions of your business, including controlling your costs and expenditures.
Here’s what you need to know when it comes to outsourcing and saving big money.
Why You Should Be Outsourcing
The main benefit of outsourcing is to lower your business costs and save money so you can invest that capital in other areas of your company. This can be particularly beneficial in the first year of business when you need to focus on keeping down your expenses as much as possible. Hiring other professionals to do the work for you on an as-need basis can save money when you don’t have to hire an employee for every skill you may need throughout the year. Outsourcing allows you to employ skilled and talented professionals from anywhere in the world when you need them at a rate that’s competitive and affordable. For instance, you may only need to hire someone to help with your website design a few times each year. When you outsource, you can get the skilled expertise you need without having to hire someone full time for a project that you may only need to be completed once or twice.
What Should You Outsource?
Every technical and business process can be outsourced. Concentrate on the strong skills your team already has and outsource those projects that an experienced vendor can do at a lower cost and with better quality than you can. Some common projects to outsource include year-end accounting, IT networking and infrastructure, software development, and website construction. Outsourcing lets you pay someone else to do the job better!
You’re in Control
One of the reasons that many businesses shy away from outsourcing is the concern that they may lose control and visibility during the outsourcing process. There are a few things you can do to have as much control as possible:
Be part of the project
Stay involved with the project from beginning to end. Clearly define your expectations to everyone involved. This includes goals and deadlines.
Always be available
Always be available for communication with the vendor you’ve outsourced to. Otherwise crucial decisions may be delayed, and the timeline of the project is extended. Or decisions are made without you – decisions you may not approve of.
Transparency and visibility
Everyone on your team, including the vendor you’ve outsourced to, should be part of regular communication. You don’t need to micromanage every detail of the project but keeping on track with transparency and visibility are essential to successful outsourcing.
Efficiency and Productivity
A business that is running efficiently and productively is going to save money and see profits. Outsourcing allows you to focus on multiple objectives and tasks at the same time without hiring more employees to reach your full potential. Outsourcing also boosts productivity when the vendor you’ve hired is in a different time zone. If you’re assigning work to a provider in a country overseas, you’ll be able to benefit from the time gap – work will be done around the clock, ensuring that your business sees less downtime.
Choosing an Outsourcer
When deciding what outsourcer to use, follow these guidelines:
- What do you want to achieve? – define the tasks and what you want to accomplish.
- How experienced is the provider? – find out what their qualifications are and what other projects they’ve worked on.
- Ask for references – having references you can contact will give you firsthand information about how professional the provider is and give you confidence that they can do the job.
Once you’ve outsourced one or two projects, you’ll see how easy it is – and how profitable it is to your growing business!