Hard times are here. The coronavirus pandemic has created havoc in the economy. The future is uncertain. Businesses have to cope up with the stringent lockdown measures and at the same time be prepared for decreased businesses when the restrictions ease and life moves towards normalcy. How do small enterprises cope up with the subsequent loss in business? One simple and more realistic solution will be outsourcing.
What is outsourcing?
Outsourcing is the process of entrusting projects, tasks or parts of it to a third party or external vendor who has expertise in it. Many of the functions like mobile app development, graphics design, account management, website design & development, data entry processing, transcription, data conversion, call center services, inventory management etc, can be outsourced and completed with high-quality services, better resources and reduced costs.
What are the benefits of outsourcing?
Outsourcing can be considered as getting access to the best in class rather than cutting down on costs. The reduced cost is an added benefit, but not the main motto of outsourcing.
Saves on time, money & resources:
Outsourcing makes your task easy. For example, you outsource web designing & development to a country where the skills are advanced and the costs are reduced. You save on time, efforts, money and valuable local resources. Similarly, when you outsource designing social media banners or logos, you save on time and money.
Reduced cost of operations:
Outsourcing is a big boon for small enterprises and startups that are looking for advanced solutions at reduced costs. By outsourcing, you hire advanced skills so that you can train the local staff for business growth. The cost of hiring a third-party service provider means that you reduce the costs of setting up in-house operations.
Start projects fast:
With outsourcing, you can start working on projects with immediate effect. If you go for in-house, you need to hire talent, train them and provide support that is time-consuming. But when you offer the same project to a vendor, your project gets initiated and completed soon.
Save on infrastructure and technology:
You will not have to worry about investing in infrastructure and the right talent. The third-party service provider takes care of the business project from start till completion. In fact, you save on hiring and training costs of employees.
Focus on core functions:
Outsourcing frees the hired talent from performing basic tasks. If you have to design a corporate presentation, it is better that you outsource it rather than deploying your marketing manager to complete the task. This frees the manager so that they can concentrate on more productive business-oriented tasks for growth. So as to say, you can focus the resources on core functions.
You just have to repurpose the saved funds to more profit-generating modules. The saved cost and time can be utilized to upgrade the local employee skills like managerial or marketing skills. It can be used for advertising and increasing the audience reach thus increasing the team productivity.
Access to skilled resources:
When you outsource projects to a technically advanced team of professionals, you get access to skilled experts who have vast experience in their respective fields. Your business gets enhanced by their capabilities.
Great opportunity for startups and SMEs:
Big firms have the capacity to hire talent, train them and provide in-house support. The smaller firms and startups simply cannot match up to their standards if they plan to develop projects in-house. Outsourcing acts as a great leveler and gives small firms the same opportunity of utilizing talent, expertise and technology as the big firms.
When you outsource your work or project, you can take benefit from the time differential. You can manage the business for a longer duration, say 16-18 hours by combining your working hours and the external agency working hours.
Better end result:
High-quality deliverables help in your business growth and promotion. With outsourcing, your work is better and you get services that add value to your business.
How will outsourcing impact business profits?
Outsourcing is not a replacement for local hiring. It is just an enhancement for improving your business dynamics. It is taking advantage of the best talents and advanced technologies but at a lower cost. It helps you to concentrate on your business growth by allocating the saved costs to places where it will yield fruitful results.
It is not just the coronavirus pandemic. Outsourcing is beneficial to firms in the long run if you select the right vendor. If your small business or startup has to sail through the uncertainty, it is time you think about cutting costs and increasing the profit margin.