Five Ways Outsourcing Benefits Your Business

More and more business processes are being outsourced…

5 Outsourcing BenefitsAccording to a Statista report, revenue from outsourced global services rose from 45.6 billion dollars in 2000 to 104.6 billion dollars in 2014. People are outsourcing their IT processes all over the world and both the company outsourcing and the company doing the work are benefiting.

Outsourcing typically involves a company subcontracting work to an outside party. There are several different functions within a company that could be outsourced to cut down on expenses.

There are many organizations out there today that will outsource to vendors to accomplish certain goals. Here are five ways that outsourcing can help your business:

1. SKILLED SPECIALISTS always at your disposal

Hiring skilled experts to handle certain tasks will help save time and money. They have the technical expertise along with the equipment you need to get the job done successfully.

Let’s face it – spending money on employee training and certain certifications is costly and time consuming. Plus, people leave. If you’ve spent the time to train your employees in a complicated, in-demand technology, they’re going to be a sought after commodity. Now you lose your investment and have to start over from scratch. Outsourcing certain tasks to companies who specialize in that field will not only give you piece of mind, but allow you and your employees to focus on the core values that influence your customers and drive your business.

2. FOCUS on your core business

Your business must be your center of attention in order to help your customers grow and keep them happy. When the focus is around the core of the business, you can provide a better experience – not just for your customers but also for your investors, partners and employees.

Outsourcing non-core functions helps you improve the efficiency of your product innovation and customer satisfaction while directing resources to what’s most valuable to your bottom line so you can stay ahead of your competitors. It becomes an advantage to use outside resources to perform the internal activities that would otherwise deter you from daily business operations.

3. COST SAVINGS are just the beginning

This is the argument you’ll hear about the most, but it continues to be one of the biggest driving forces behind outsourcing. There are inherent cost savings that result from outsourcing people, time and equipment. Utilizing a hosting provider, for instance, rather than purchasing all of the hardware yourself can have a big impact on capital costs – plus you won’t have to worry about refreshing the equipment every few years. Not only are you saving on hardware, but you also save on hiring IT personnel, who are often very specialized and very expensive.

Hiring a full time IT department to run daily IT operations within a company can be your biggest expense, whereas outsourcing support, maintenance and project work to a provider can open up your budget for other ways to build your business. Small companies need to think big, and stick to their strengths, and to do this, they must hire someone else to do non-core functions.

4. STAFFING FLEXIBILITY leads to more gains

This is the easiest way to minimize your overhead cost, office space expansion and even reduce liability. Insurance and healthcare can be very expensive for a company (especially a small business) and if you’re able to outsource certain departments this allows you to minimize on overhead cost/insurance.

For example, a small company necessarily does not have the immediate need for an HR department or even IT specialists. Bringing in an individual during times of need is less expensive than adding another person to the payroll. It’s also reassuring to know that you are following proper HR and IT guidelines.

5. Gain a COMPETITIVE EDGE on everyone else

How can outsourcing give you an advantage over your competition? It must be said again that the ability to focus on the core values of the company is a surefire way to provide a better product or service. This also provides the opportunity to seek out investors or partners to help launch your company even further.

Marketing has a great influence, and many brands can be known solely from marketing. According to Salesforce, 70% of people say they always open emails from their favorite companies. Marketing can be a huge advantage and outsourcing it to the experts can get your product in front of the right people. Effective marketing can have a nice competitive edge by influencing potential customers, and this industry is turning more and more to freelance and outsourced work.

Find the pain point within your company that outsourcing can fix!

Outsourcing is certainly not a new concept, but all too often, businesses must be reminded to consider this possibility when staffing. Discover the advantages that small to large business owners utilize to be successful.

A good business strategy starts with outsourcing the areas within your company that you don’t feel comfortable tackling yourself. Empower your employees to focus on the core activities that make them more effective in achieving the goals that will move your business forward.



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About Shelly Lindhorst

Shelly is part of the Customer Success team within Fpweb.net, and her team’s primary focus is customer satisfaction and success. As a customer advocate she is there to support current customers with requests regarding their hosted site(s) along with escalating a support issue. In her spare time, she enjoys watching her three children play baseball, basketball, football, soccer and gymnastics. She also enjoys going to St. Louis Cardinals baseball games with her family and enjoying a plate of nachos with jalapenos.
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3 Responses to Five Ways Outsourcing Benefits Your Business

  1. Alisa Addison says:

    Outsourcing, without a doubt, has many advantages. It allows you focus more on expanding your business while saving time and money at the same time. And with all these reasons, you’ll get to focus more on the bottom line of your business, on its growth. I’m pretty sure every company that outsources any process gets any, or probably, all of these advantages.

  2. What a great article! I now better understand the benefits of outsourcing marketing to an agency. Getting the latest technology has to offer your business is definitely a step up and whats great is that the existing team becomes more proficient in marketing. I assume that this is one of the best ways to get your business out there!

  3. Matt says:

    The importance of technology can’t be underestimated. Even if you’ve trained people to use the latest tech, you probably haven’t got the best machines as resources would be much better spent elsewhere. I’ve seen companies try to use stuff that’s just not good enough before and it ends up being more expensive and more time consuming.

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