The Biggest Myths About Offshoring
Perhaps your business has more work than it can handle. Or maybe you’d like to take on additional responsibilities, but can’t because you don’t have the specialized expertise needed to get the job done right. Outsourcing certain back-office tasks can help your business to focus on doing what it does best, without sacrificing the quality of those things you’re just not equipped to handle right now.
Common misconceptions about outsourcing have caused many people to think badly of it, but in fact, this business practice can offer many benefits to companies, including:
Labor Costs and Efficiency
Hiring and training new employees takes a great deal of time and money. When you only need certain positions filled on a temporary basis, outsourcing the work can be the most efficient option. You won’t have to use valuable resources up training short-term workers, and you can keep the extra help on as little or as long as you need it. If your employees don’t have to waste time taking on extra back-office tasks, they can focus on doing the work you hired them to do, which earns your company more money. Offshoring/outsourcing will save your company a great deal on labor costs in the long run.
Outsourcing or offshoring tasks may seem like an easy way to lose control of your business operations, but can actually help you go gain more of it. If certain areas of your business aren’t being properly managed, you probably have no idea what’s going on with them, and this lack of control is definitely costing you money. Turning these departmental responsibilities over to an outsourced firm will allow you to get a handle on them. The firm will consult with you to find out exactly how you would like them to manage these tasks, and will provide you with status updates to let you know how their work is going. You’ll know exactly what is going on and you’ll pay just one flat rate for their services, instead of spending money on multiple expenses like salaries, software, and subscriptions.
Getting Work Done Quickly
You never want to say no when your company receives a last minute project request, but it can be difficult to find available resources to work on it, as your employees likely already have more than enough to do. It can take weeks, or even months, for your staff to wrap everything up and assemble a team to get started on the new project. If you opt to hire new staff to handle the overflow, you’ll have to spend time interviewing and training them, in addition to providing added resources. Conversely, a good outsourcing or offshoring firm can typically get to work right away to complete any work you hire them to complete. Hiring an outside firm to work on these projects allows you to turnaround last minute requests quickly, gaining very satisfied customers.
Sometimes companies grow faster than they can manage. If your business is experiencing a period of rapid expansion, outsourcing or offshoring routine tasks like payroll, data entry, or accounting can help to reduce overhead costs. Instead of having to rush out and find new office space to accommodate a much larger staff, you can stay put awhile until things calm down.
Outsourcing or offshoring certain tasks can help your business processes to become much more streamlined. When your business grows at a faster rate than you can keep up with, finding a way to keep things under control is essential. If you’re able to outsource some of your back-office tasks to a company with the necessary talent and experience to handle them, you’ll be able to focus on doing what your company does best, without having to worry about managing every last task. Not only will this make your company more efficient, it will also save you a great deal of money.
Sara Collins is a writer for NerdWallet, a site dedicated to helping readers invest strategically.