Outsourcing is often looked at as something negative, something that takes the jobs from the people in your country and gives them to people half the globe away. In reality, this is a much more complex issue and it often does not even mean that your jobs will be moved from your country. Outsourcing is often a solution to a number of problems that your business might be having and it can truly be the best ally you could hope for.
However, how does one know when outsourcing is the right solution for them and their business? We believe that the easiest and the most clear-cut way to approach this question is to look at the different aspects associated with actual outsourcing.
The Proficiency Aspect
Proficiency and the quality of the services is quite possibly the most complex of things to consider when examining outsourcing as a business technique.
For instance, there are many cases when outsourcing can lead to a drop in the quality of the services and products that you as a business can provide. Let’s imagine that you have had a client of some kind for years. People from your company have taken care of this client for all those years and they have not only developed a relationship, but they also know everything that this client needs and wants. When you outsource a certain aspect of providing these services, it may require some time for the new people to reach the same level of expertise.
On the other hand, people to which you outsource often employ people who are, in general, better educated, more experienced and skilled at doing a certain kind of job that you used to do in-house. This means that with time, they will be able to provide you with a superior efficacy and proficiency. We talked to people from an RPO recruitment company and they told us that their clients are often surprised by how well they handle their recruitment needs and it all has to do with their experience and their proficient staff.
Like we said, it is a complicated issue and you will need to think about this long and hard.
The Money Aspect
One of the main reasons why companies outsource is to cut the expenses. For instance, when you outsource your bookkeeping, you can make substantial savings as opposed to having a bookkeeper on your permanent staff. This also goes for departments and services such as IT or HR. Most businesses simply do not have the need to keep IT or HR staff on regular payroll and they can make substantial savings by outsourcing these departments.
In addition to this, you are saving money on the infrastructure and equipment. For example, when you outsource your IT department, you do not longer need to supply your in-house IT people with modern technology every few months and you can save on renting space.
The Flexibility Aspect
When we are talking about flexibility, we are talking not only about financial flexibility that is enhanced with outsourcing. We are also talking about the more general sense of flexibility that your business will enjoy once you outsource certain facets of your business. When you outsource, you gain precious time and this time can be invested in actually advancing your business. Also, when you outsource, you can easily get rid of an entire department if you discover they are doing nothing for you. You can then reallocate the funds and the time to something else, something that will actually benefit your business.
The Technology Aspect
It is very difficult for a business to have access to all of the leading and most modern technology, including technology involved in the tangential business operations. Unless you are a giant conglomerate or a company that employs thousands, you will not exactly be able to supply your IT, accounting, HR and all the other departments with the latest in technology. When you outsource, you are most likely going to get all kinds of advanced technology that would be unavailable to you if you went with in-house solutions. Companies to which you outsource need to provide the best possible services to every client and technology is a big part of it.
All in all, outsourcing has a number of benefits that might be perfect for some businesses. However, it all comes down to what you as a business owner believe is important for your business’ future. We only want you to keep an open mind.