Outsourcing is a growing business trend practiced by large and small companies alike, and there may never be a better time to learn more about this hot business trend. From product development, to call center operations, to sales and marketing, many areas of your business can benefit from outsourcing, which can continue into after-hours as well. Let’s take a look at four good reasons to consider business process outsourcing.
Advantages of Outsourcing
Recognizing the benefits of outsourcing will help you determine if this is something that could work for your business. Consider the following advantages:
1. You’ll have access to a bigger talent pool.
When you hire an employee, you may be limited to a small, local talent pool from which to choose – often meaning you are forced to compromise on skill sets. Companies are finding that outsourcing gives them access to global talent. If you need specialized help, it often makes good sense to cast your net farther.
2. You don’t have to hire more employees.
When you outsource, you save on overhead costs. This move can save you money on everything from benefits to training.
3. You’ll recognize lower labor costs.
When you consider that approximately 300,000 jobs are outsourced by the United States each year, you see that the practice just makes good business sense.
Each company has its own reasons for doing this, with many simply seeking lower labor costs overall. While no one wants to lose quality at the expense of price, outsourcing may enable you to get the best of both worlds. A global talent pool makes it easier to find the right talent at the right price.
4. You can share some risk.
Risk assessment and analysis is one of the most important factors in any project. Outsourcing specific campaigns or processes to experts in their respective fields enables you to benefit from their specialized ability to plan for and mitigate possible risks.
Beyond the Cost Savings
Companies are starting to view outsourcing less as just a money-saving tool and more as a method for driving innovation. A recent global survey by Deloitte found that 31 percent of companies now use the practice to increase top-line growth by encouraging innovation into the business itself. Additionally, 35 percent of those companies surveyed are already recognizing the value of innovation in their outsourcing relationships.
Today’s growing companies seek to focus on research and development and building new products, while allowing a third party to handle the more tactical components of their business. This method can help companies both large and small streamline and better scale their processes — leading to greater efficiency and significant cost savings.