Compelling Reasons Why Your Business Needs to Outsource
By Business Desk
Thursday, October 6, 2022.
There are many reasons why your business needs to outsource for 2022 and 2023. Saving money is chief among them. But there are also strategic business reasons as well.
IT, Networking, and Cybersecurity
Your business is always at risk of being hacked. In the USA alone, the FBI reports almost 900,000 complaints of cyber attacks on small businesses in 2021. So security can no longer be ignored, especially in a small business. But you likely don't have enough money to hire a team of experts. And if you did, it would cost you more money. Outsourced IT support services, on the other hand, offer great security. For a small fee, a typical package includes data backups, security monitoring in real-time, software updates, and defined user access controls.
Your Business Needs to Outsource for Experts
One of the main reasons to hire someone else to do a job is because they are more skilled. People can be hired on an as-needed basis to do professional work. Outsourcing services are available for just about anything you can think of. But they really shine when you need a skilled professional to do something that neither you nor your employees can do, and that would cost you a lot if you did it yourself. For instance, you can do your taxes yourself. But an outsourced accounts department can find deductibles, handle payroll and prepare financial statements.
Reduce Employee Costs
The highest cost for your business is the wages you have to pay your workers. And since the cost of doing business and living is going up, you need to meet your employees' expectations to support them. But, likely, you can't afford to hire new people right now. This is when outsourcing can help. For example, hiring a sales team with all the right skills would be too expensive. But many outsourcing companies offer professional inbound and outbound call center services that can do the demanding tasks for you for a relatively low monthly cost.
Professional women walking together - Image Courtesy of Pexels
You Only Pay for What You Sign Up For
Most of the time, when you sign up for an outsourced service (many of which can be done online), you choose a package that works for your business. Most have different packages for small, medium, and large companies. Most packages can be paid either monthly for a set fee or annually, which is often much cheaper. And you pay exactly what you see. Unless, of course, you want to move up to a more expensive plan. Your chosen service may offer extra services, but any additional costs are always transparent and are paid for when you ask for them.
You Don't Need to Expand
As your business grows, you may need more services to handle customers and important systems. For instance, you may need to use telemarketing, sales teams, and call answering services to handle an increased demand. But you don't have to do this if you hire someone else:
You don't need to move to a larger and more expensive office.
You can keep safety levels and conditions acceptable with reduced staff numbers.
There's no need to expand your office to accommodate a new department.
Leasing conditions won't be broken by having to suddenly move.
You can stay in a prime location that brings in more customers and clients.
Finding the right place for your business can take a long time. You must consider internet access, available space and facilities. By outsourcing, you can give your business and clients the services they need without giving up office space or moving to a sub-prime location.
Reduced Liability as an Employer
When you outsource services, you get all the benefits of a skilled employee without having to deal with managing them. This is because the outsourcing company employs the workers, not you. So the service you hire has to carry the weight of work and meet obligations. One thing you don't have to worry about is paying each employee. That's up to the outsourced service, not your business. The employment service is also responsible for some insurance obligations instead of you. The only thing you have to do is pay for the service.
Fewer Employees to Worry About
It's hard enough to run a business. But you are also responsible for multiple employees. As an employer, you must ensure your staff is safe, take care of them, and pay them a fair wage. And sometimes this can be too much work. But when you hire an outsourced service, like an employment agency, you don't have to worry about the people doing the work for you because they work for a third party. This means that you don't have to worry about wages or management. These things are the agency's responsibility, not your company's.
Your Business Needs to Outsource to Reduce Training Costs
In addition to wages, it costs a lot to train workers so they can meet skill demands. And you might not have enough money right now to do it. So, investing in your employees is always a good idea, but it isn't always possible. Therefore, if you want to find skilled workers, you have to use outsourcing agencies. Even if you only use them for a short time, you can make sure you hire the right people for the job in the meantime. However, it's not unusual for outsourced workers to stay at a site for long periods, becoming like a member of the team themselves.
You Don't Have to Deal with Contracts
Another great thing about outsourcing is you don't have to sign any contracts. Almost all outsourcing services let you choose a package that fits your needs. So, that's what you get when you sign up for a package. But you can also stop using the service at any time without having to pay expensive fees. This is one reason why it's a good idea to hire someone else. For example, if a worker is off with COVID, you might need to hire a replacement from a recruitment agency. So, you get an experienced person to help you as needed with no contract obligations.
Summary
Your business needs to outsource primarily to save money as costs increase. However, other compelling reasons include reduced management responsibilities and limited expansion.