As per definition, outsourcing is the “strategic use of external resources to perform tasks normally handled by an in-house team and resource.” In other words, outsourcing is the process of sharing the workload with efficient and specialized service providers or companies in exchange of professional fees. So, it allows the employees to focus on core responsibilities without getting tied up with extra work that can be done more efficiently and inexpensively by other professionals.
Although there are a few concerns with the outsourcing model, we believe, and it’s a fact, that outsourcing if done in the right way, can be beneficial to the company. Here are 5 major reasons why:
One of the most important and obvious reasons to outsource is to save a lot of money. On an average, companies can save up to 30% by outsourcing some of their business process to external agencies. The company can save a lot of money by minimizing their man power and pay roll. Instead of hiring one or two employees and training them, partnering with service providers reduces the expenses of the company. Over 70% of the companies that chose to outsource, have saved significant amount of money.
It is always a normal thing when a company experiences a delay in some of their process. Partnering with external services companies will eliminate it. Often, companies that provide services deliver the goods on time.
A lot of companies outsource some of their business process to focus on what they do best. They partner with companies that provide the services they need and focus on their core business. If you’re running a digital marketing agency, it is always best to partner with design studios to take care of all the designing, thereby saving a lot of time and cost.
Work With Better Skilled People
Companies that provide services often have a highly talented and experienced team. You don’t have to worry about training and recruitment expenses anymore. Therefore, Outsourcing allows you to access resources and produce greater quality that are not available internally.
Free Up Internal Resource
Making the best use of things that are available is one of the most underrated characteristics of a great business. Instead of delegating tasks that are not important, business can make use of the available resource to focus on more significant processes.