While traditionalists may argue that everything should be done in-house, more and more businesses are starting to take the idea of outsourcing more seriously. The reasons behind this are numerous, most prominently, due to the fact that outsourcing is more cost-efficient, it gives better immediate results and it is more convenient. Furthermore, the idea of outsourcing itself has evolved in the past several years. Here are five additional reasons why outsourcing might be the right solution for your SMB.
1. Improve the focus of your company
When running a small operation, you will have trouble focusing on your core tasks due to the fact that you have to manage several departments at the same time. Therefore, outsourcing certain departments, such as IT or HR, can improve the focus of your company. These fields already require a high level of expertise that you probably don’t possess, which means that you will finally be free to dedicate your full attention to areas where you’ll be able to contribute the most.
2. Easier budgeting
Even though you could start your own in-house departments instead of outsourcing marketing or customer support, outsourcing simply makes budgeting much easier. You get a fixed price for the set of services you’ve insisted on and that is precisely what you have to pay for them. Seeing as how you are negotiating directly with the representative of the agency you are outsourcing to, you won’t have to worry about benefits, paid leave, sick days, holidays, overtime, incentives or micro-management of their employers. As far as you are concerned, you have a financial obligation towards the agency you are dealing with, an obligation that can be fulfilled by simply paying what you owe on a due date.
3. Expanding your talent pool
The next massive advantage of outsourcing is access to a much larger talent pool. Think about it, when hiring in-house employees, unless you’re willing to bring in remote workers, you are forced to work with the local talent. In 2018, however, offshoring is a viable option. Instead of working with a limited talent pool, you can hire a copywriter from Hong Kong and get a much better service at a more affordable price. Needless to say, in this particular situation, having a greater offer to filter through results in a direct boost to your company’s productivity. This is especially true when hiring people for jobs that require creativity.
4. Prepare for the future
The next important reason why outsourcing is a good idea is that it arms you with an invaluable experience that you will definitely need in the future. You see, as a business owner, you will have to learn how to deal with an increased workload, sooner rather than later. As your company grows, you might be tempted to try and penetrate a foreign market or simply start an international office in order to diversify your brand a bit. Either way, outsourcing early on can prepare you for the challenges that come with these practices. Furthermore, outsourcing your IT, customer service or copywriting tasks is a great way to safely scale up in the world of remote collaboration.
5. Greater expertise
Even if you do manage to hire the right people for the job, equip them with high-end tools and provide a top-notch training, it will take time until they are competent enough to rightfully call themselves experts. Sure, you have to start somewhere but what if you need some immediate results and you can’t afford to wait? While this may sound impatient or even unreasonable, the truth is that no one is going to cut you any slacks just because you are new to the business world. So, if you have the feeling that time is working against you, outsourcing might provide you with just the experienced assistance you need.
At the end of the day, there are so many benefits to outsourcing but there are a couple of flaws, as well. First of all, you no longer have a direct control over your operations like you used to. Second, there is always a question of security, seeing as how unverified personnel might gain access to the otherwise sensitive information. Finally, there is the issue of calculating the long-term costs. The longer you postpone starting your own department the more money you stand to lose. Still, some companies reach the conglomerate status without ever giving up on the idea of outsourcing.