Outsourcing is a business practice that has gained much attention over the last couple of years. Still, in spite of this growing popularity, numerous influential figures are still on the fence about the idea of moving important business processes and functions outside the house and under the wing of third-party service providers.
However, these concerns are mostly unwarranted, as outsourcing proves to be a very nimble and versatile concept that allows businesses to quickly adapt to the necessities of the COVID-19 economy. Let’s take a look at a couple of tangible benefits you should take into account when considering moving to this business model.
Focus on core practices
All businesses excel when they are allowed to focus on the practices and activities that generate revenue. These so-called core activities are, after all, why these companies were founded in the first place. Accounting, marketing, payroll, human resources, and other sectors are there to fill in the blanks and make these core activities possible. By relegating all (or at least the majority) of these ancillary departments to third-party service provides, businesses are able to focus their time, money, and creativity on the activities that keep them market-worthy.
Easy access to a skilled workforce
Developing non-essential work sectors within the company is not only cumbersome and expensive, but it is also very hard. Skilled professionals from areas like marketing, HR, and legal are, in most cases, recruited by specialized companies that offer stimulating salaries and opportunities for advancing their careers. Very few of these precious workers see their future in the form of running small in-house departments for SMB employers. Outsourcing gives the companies that are lacking stimulating career options access to a highly skilled workforce that would, otherwise, be off-limit.
Management of international PEO
One of the greatest advantages of outsourcing is that you get the opportunity to skip the local labor market and tap into the much more versatile global game. But, this raises the question of local legislation and gives us an excellent opportunity to mention that co-employment laws around the world are not always as liberal as they are stateside. Fortunately, some recruitment companies are taking the matters of global PEO services completely under their wing, allowing you to hire workers all across the world without having to establish legal entities in their countries.
Ability to stay productive 24/7
Another advantage of hiring labor from all around the world and, in turn, the idea of outsourcing is that you are not constrained by the local time zones and 9-to-5 shifts. When your company closes its doors for the customers, your remote third-party associates can take over, sort out the back-office work, prepare marketing content and allow the next shift to start their day without any unnecessary baggage. Even better, the concept of global outsourcing gives you an opportunity to run your customer service department 24/7 without losing any of the prospective clients.
Affordable prices and controlled costs
At first glance, outsourcing may not look like the most affordable business practice, especially in the SMB sector. However, if we look at this matter from the long-term perspective, we will get an entirely different picture. Hiring skilled workers, providing them with necessary office space, buying the essential software and on-site tools, and often expensive training and onboarding are only some of the costs that make the development of non-essential company departments virtually unsustainable. Outsourcing moves this burden to third-party providers and allows businesses to get professional services at a fixed price.
These few arguments are far from a complete story, but they should give you a good idea about the true benefits outsourcing brings to the table. The current state of the global economy is in a very uncertain state, and anyone who wants to survive the following years will have to be quick to adapt to new market circumstances. The ability to build your business departments out of nothing through third-party services does seem like a good fit for the problem.
Diana Smith is a full time mom of two beautiful girls interested in latest business news and new social media trends. In her free time she enjoys exercising and preparing healthy meals for her family.