Outsourcing Benefits Your Business
Are you an entrepreneur who owns a thriving business looking to expand your client base or launch a new product line? Great! Are you ready to put in the extra work?
By Kristine Manjares
Most people think that working from home is an easy feat. In reality, it makes it harder to focus on your goals and keep a tab on work-life balance. If you constantly end up worn down at the end of each day with important tasks left undone, it is a clear sign that you need an extra pair of hands to help.
As a business owner, your aim is to focus on what brings in more revenue, more clients and strive on providing value-adding solutions that encourage client retention. If you’re stuck doing administrative, repetitive tasks that steer you away from doing what you’re supposed to do, then it’s time to revisit your strategy. Gauge what type of help you require, what the workload is like and what your budget is. Outsourcing is one strategy you can explore.
Startups and SMEs should consider outsourcing in order to survive.
Before we go further, let’s define what outsourcing is. The dictionary defines outsourcing as:
“To delegate (a task, function, or responsibility) to an independent provider.”
A person who offers outsourcing services is usually called an outsourced employee, remote worker or contractor.
Outsourcing is a big no-no for some business owners. Others think it’s just for large companies. Some would prefer to keep their business operations in-house.
Maybe outsourcing is a new idea for you or you have some hesitations about involving an outsider in your business. So you ask:
- What types of services can they provide?
- I have a limited budget, why should I add extra cost?
- Can they deliver the desired results?
- How do I know I can trust them?
Here are a few benefits of how segmenting your business and deciding to outsource the work can help you and your business:
Allows you to focus on your core business process
The main benefit of outsourcing is freeing up your time from doing the non-crucial tasks so you can focus on your strategic vision and firm up your business plan.
Enable You to Scale Faster
If you’ve been planning to grow your business which requires additional capital, the right systems and tools, and complex training for new staff, outsourcing can make it easier for you to scale up without incurring significant costs. You can tap into the expertise of outsourced employees to scale in an area that would be otherwise costly to expand quickly.
Outsourcing enables you to make your operations more efficient resulting in improved service levels, higher sales, and more satisfied customers.
Flexibility and Business Continuity
Hiring contractors from different time zones can provide flexibility instead of you working long hours running your business operations. You can also outsource temporary workers during peak seasons. With contractors working from all over the globe, you can hire someone to take care of your customers even while you sleep.
Outsourcing keeps your operations uninterrupted in the event of employee turnover. For example, your accountant or assistant suddenly resigns or one of your regular employees needs to go on an unplanned leave, who will do their tasks? Can you afford to hire immediate replacement or do you have the luxury of time to wait until someone fills the gap? Can you do the tasks yourself? With outsourcing, you can choose from a range of service offerings. Plus the option to do a paid trial run for a short period of time before deciding to enter in a continuous service agreement.
Having a limited budget is just another reason you should consider outsourcing. You can save money on recruiting and training costs. Outsourced employees are highly skilled in specialized areas. They can even do additional research to provide value for your business. By outsourcing, you also incur lower overhead costs. There’s no need to spend for additional equipment or larger office space.
Product and Service Innovation
Want to launch new products and services but lack the manpower? Most outsourcing services can customize their offer if you just let them know what you need or what your ideas are. Outsourced employees often have creative ideas. They also invest in their own training and make it their business to be abreast with current trends so they can provide cutting edge solutions.
Of course you are concerned about intellectual property plus data privacy and security. You worked hard for your business ideas and you just can’t afford to have someone steal them!
Can you really trust outsourced employees?
One thing you can do is ask for recommendations from people who have experience with outsourcing. They can drop a few names or an outsourcing agency that you can try working with. You can also check verifiable testimonials from satisfied clients.
How will you know if your remote worker completed the agreed hours? This is a valid concern for contracts based on per hour payments. Setting up agreed workflows and regular meetings are effective ways to ensure deliverables will be met. You can also utilize tools which allow you to monitor the activity of a remote worker.
There are legal tools you can use to draft an agreement with a remote worker. First, have the contractor sign an NDA. Next, specify the scope when you discuss the Terms and Conditions of work before finalizing the agreement. You should also limit their access to networks and tools to the specific work they were hired for.
The Bottom Line
With the growing competition among different industries, the need to leverage all available tools is crucial to get ahead.
If all you do is respond to emails, create blog posts, respond to comments, who else is going to care about the nuts and bolts of the business?
When will you finally have the time to work on that brave new business idea?
Focus on what drives your business forward and outsource the rest.
What about you? Would you consider outsourcing? Why or why not? Let me know your hesitations so I can address them in my succeeding posts.
Comment below and let me know your thoughts.