The majority of companies that are engaged in outsourcing report that they feel positive about this decision. They have established a strong relationship with a company they are outsourcing to and are enjoying the benefits they originally expected from this business model.
At first, IT companies were among the bravest who chose to outsource a part of their operations. However, the trend has increased in popularity in the past decade and more industries are dipping their toes to check out the advantages it may bring.
What about you? Still feeling a bit sceptical?
That’s quite understandable, given the fact that outsourcing comes with its own set of challenges.
But lets for a moment stop thinking about everything that could go wrong and think about the advantages outsourcing can bring for your business. In fact, startups and companies, both big and small, place their trust in partners across the globe to complete a part (of the majority) of their work.
Almost 60% of companies opted for outsourcing as a way to minimize their business costs and, on average, they see about 15% savings. Especially startups, that are running on a fairly limited budget, are looking for ways to scale their operations without going belly up.
Outsourcing allows you to establish contact with companies and individuals in countries with lower costs of labor. However, keep in mind that the cheapest option is not always the most fruitful one. Weigh the pros and cons of collaborating with a team from a specific area – will you be able to establish work hours everyone will agree with, do they possess the necessary skills, and can you break the language barrier? These are just some of the priorities that trump financial savings. Why? Because, in the long run, an imprudent decision might just cost you even more than a good, “old-fashioned”, locally-established team.
By outsourcing certain administrative and time-consuming tasks, you might increase your team’s productivity by 10 times – or even more. Freeing up their schedule allows them to focus on core responsibilities and provides them with more time to complete the tasks better, with more attention to details, and improved results.
Larger candidate pool
Outsourcing provides companies and HR managers with a much greater scouting field. Your job ad can target any market and find the best possible candidate – and we mean that quite literally. There’s no reason to limit yourself to local candidates who maybe only fulfil certain criteria.
What is more, a worldwide talent search eliminates the need for employee training. As you don’t limit yourself to the local community, you increase the chances of finding a person who has the much-needed experience. This again brings us to exceptional savings in resources – the costs of training are lowered and your senior employees don’t have to set aside a part of their time to educate new colleagues.
Access to local customers
Expansion to new a market is a daunting task. You are tapping into the unknown, where some of your competitors have already built a strong brand name and have established a solid customer base. To be able to familiarise yourself with the target market and get close to potential customers, you need a local team to be the first line of contact. In such cases, it is best to opt for locals who know everything about the culture, habits, and needs of the community. They will provide adequate customer support and make note of all requirements and complaints – report to the headquarters and help better products/services, as well as improve the company’s approach to the target market.
When all is summed up, you realize that it all boils down to one crucial benefit – outsourcing facilitates business growth. Just think about it – you get to hire the best people and achieve the most optimal results without going in the red.