Outsourcing – the practice of using external company to handle work normally performed internally – is a familiar concept to many entrepreneurs. Small companies routinely outsource their payroll processing, accounting, distribution, and many other important functions — often because they have no other choice. Many large companies also outsource as a way to cut costs and be more efficient.
It is important however to be SMART in how you outsource. Outsourcing too much can mean less control and being subject to other companies’ performance. Not outsourcing can stunt your growth by putting all the functions of a small business on yourself or a small number of employees.
SMART outsourcing, however, can provide a number of long-term benefits:
Hiring and training staff can be very expensive, and temporary employees don’t always have the skills you need and live up to your expectations. Outsourcing lets you focus on where you need them most. Outsourcing also lowers costs by converting fixed costs into variable costs.
This releases capital for investment elsewhere in your business, pump more money directly into growing your business, and allows you to avoid large expenditures in your business’ early stages. A major expense for any firm is technology. Instead of purchasing expensive technology and hire someone to manage it, you can outsource it to companies such as www.sundogit.com.
This can free your staff from computer troubleshooting, keep servers running optimally, update your software to the latest versions, protect your systems from malware and hackers, and keep your daily processes running like a well-oiled machine — without requiring you to lift a finger.
Provides Support 24/7
Customers today expect 24-hour support. Instead of employing people to answer calls 24 hours a day, outsourcing to a company will guarantee that someone is always available to help your customers. Especially if you have international customers, it is difficult to serve clients in all time zones.
Outsourcing your support means you can rely on the company for out of hours issues or to extend your working hours. This increases customer satisfaction and helps level the playing field with your bigger competitors.
You Can Adjust According to Demand
A good outsourcing firm has the resources to start a project right away. Handling the same demand and project in-house might involve taking weeks or months to hire the right people, train them, and provide the support they need. If the demand is seasonal, then outsourcing to temporary employees can help you easily scale up or down, depending on your needs.
It Allows You to Focus on Your Core Business
Your business has limited resources, and you have limited time and attention. Outsourcing can help you shift your focus from peripheral activities toward work that serves your customer. When you don’t have to worry about your IT system, paying your staff on time, and overseeing HR policies, it means that you can focus on what you need to do in order to grow your business.