Benefits of Outsourcing and How It Improves Your Bottom Line

by | Aug 14, 2020 | Outsourcing | 0 comments

Hand writing on paper
Photo: Lukas (Pexels)

Outsourcing is not a new trend in businesses— in fact, it’s been around since the 1990s. But, for some companies, the idea is still not as natural as direct hiring. If you’re one of those people who are still skeptical about outsourcing and how it can improve your business’ bottom line, consider the following advantages:

Outsourcing is cost-effective

Outsourcing services can help you save money and maintain lower costs. Because you won’t have to hire in-house, you don’t need to worry about hiring expenses, onboarding, healthcare, and other benefits, payroll taxes, extending office, and other expenses that come with hiring directly for your business — the outsourcing company that you choose already takes care of all that. Minimizing hiring-related expenses means you can allocate your money to other important stuff that can help your business grow and be stable.

For instance, you might need a bookkeeper to handle all your finances, but you may opt to not hire in-house. Instead, you can outsource this kind of service to a trustworthy outsourcing company and pay the bookkeeper by the hour or only on the days he/she works for you, especially on busy days like during tax season. This will save you a lot of money and resources as you won’t have to purchase anything your bookkeeper might need in the office, plus other expenses that come with hiring in-house— the outsourcing company already has everything covered.

Outsourcing is more efficient

In-house hiring can entail certain training and certification, which can take up a lot of your resources and put a strain on your finances. With outsourcing, you don’t need to do any of that because outsourcing services companies already have sufficiently-trained and well-versed employees that have ample knowledge in whatever task you need. You don’t have to go through the tedious process of hiring and training people, which can save you a lot of time and money that could be spent on other important aspects of your business.

Outsourcing means less risk in staffing

One of the problems when hiring in-house is that you’re never sure of their availability. When one of your employees gets sick or suddenly goes AWOL, you’ll be burdened with the task of finding a replacement immediately, which can take up so much of your time and resources especially if you need it as soon as possible. With outsourcing, you won’t have to worry about rush hiring or run the risk of having no one to fill an empty position because the outsourcing company will provide you with just the right people you need, saving you from spending too much on the hiring process and possibly hiring the wrong person for the job. Outsourcing services lets you continue your operations without any interruptions or unnecessary costs, therefore improving your company’s bottom line.

Outsourcing lets you shift your focus

When you outsource non-core operations to an outsourcing company, you’ll have more time and resources to focus on your core activities, such as growing and developing your business, building your brand, and more. Shifting your focus to more important tasks— especially those that are really in your skillset— increases efficiency, boosts production, reduces stress, and improves your business’ bottom line without sacrificing anything. As a business owner, you can only do so much; outsourcing everything but your core operations can truly help you manage your business better.

Outsourcing knows no (time) boundaries

Most businesses can’t operate 24 hours a day, seven days a week. When business hours are over, it means two things: rest time for the workers and idle time for the whole operation, which can be considered a waste sometimes.

Outsourcing services to an outsourcing company, especially overseas, can have a great impact on your business’ bottom line. With the difference in time zones, cultures, and holidays, you can operate around the clock even without changing anything in your office’s actual schedule. When you leave the office at 6 P.M., your outsourced personnel from an opposite time zone can keep your business running until you return to work, leaving no idle time in your operations. This kind of continuity and consistency promotes business growth and gives you a unique advantage without spending so much and sacrificing rest time both for you and your internal staff (if any).

Outsourcing lets you control your cash flow

Aside from being cost-effective, outsourcing services to an outsourcing company can free up your cash flow for a number of reasons:

  • When you choose to outsource, you pay a variable cost instead of a fixed cost— meaning you only pay the amount you need for a specific service instead of a full-time salary. This leaves more room in your cash flow for other important business stuff, like investments and marketing.
  • Since you’re not hiring in-house, you won’t need to buy additional equipment or invest in custom infrastructure for your employees. Say you need a part-time video editor— this requires you to provide the necessary tools he/she needs to do his/her job, which is not even a full time one. By choosing to outsource that function, you won’t have to worry about that kind of purchase because the outsourcing company already takes care of that. Not having to make an investment like that makes it much easier for your business to have a competitive edge in the market.

Outsourcing offers flexibility in staffing

When you choose to outsource functions to an outsourcing company, you are presented with a wide array of people who are diverse and skilled (with some being experts) in their respective fields. Whatever job you need to get done, you will have no problem finding the right people to suit your needs. Most outsourcing companies let you create a virtual team of highly-qualified individuals with different skill sets, making it easy to have flexibility in your staffing needs. Whether you need two writers, one web designer, and three web developers— or whichever you need more of— you have more freedom in choosing the right people for your business.

You May Also Like…

How Software Development Process Works: 6 Basic Steps

How Software Development Process Works: 6 Basic Steps

Photo: Luis Gomes (Pexels) In almost everything we do, there’s software involved. Chatting online, playing games, mobile banking, online shopping--- these apps are run by software, each built for specific purposes. A lot of work goes into building software, and in...

How to Secure Your Business’ Digital Assets/Online Accounts

How to Secure Your Business’ Digital Assets/Online Accounts

Photo: Pixabay (Pexels) In today’s modern world, it’s highly unusual for a business to not have any presence online. After all, one must keep up with the times--- especially in the fast-paced world of the digital age. If your business is active in the world wide web,...