Gone are the days when large companies dominated the outsourcing scene. Today, small and medium-scaled businesses embrace outsourcing business model for business savings and growth. Also, for them to gain competitive advantage over bigger companies and their competitors.
Newbies or the start-ups are the most common businesses taking advantage of outsourcing. Most tasks that are outsourced are back-end jobs such as back office outsourcing data entry, customer support, payroll processing and many more. Businesses get these tasks done at a lower cost when handled in-house. Below is the list of ways outsourcing can cut costs for businesses.
The primary reason most businesses decide to switch to back office offshoring solutions is to lower their operational costs. This method allows organisations to skip costs of employees’ health insurance and vacation pay. It also allows businesses to get the tasks done at low costs, without compromising the quality of service they require.
Hiring talented people that would definitely help you carry out your business goals can be a pain but with outsourcing, you pass on the task to your outsourcing partner. In this case, your partner will handle the recruitment process for you following your set standards and guidelines. This allows businesses to be free from the hassle of screening applicants who are experts on their field of work.
Increased Productivity and Improved Customer Service
Since most outsourcing agencies have different time-zones; it goes without saying that a task is being done while you are on your way home. Even if the business is closed for the day, work is being accomplished on the other side of the world. This is one advantage of outsourcing and offshoring. Because of time difference, a business can have a customer support centre with a 24-7 availability. You will have ample time now to focus more on your core business – increasing sales and improving customer services. You can manage your clients with ease. Generation of strategies to make customer experience better is a critical element in your business. Leave to your offshore partner the task of developing your staff’s skills and capabilities.
When tasks are outsourced, businesses hand over the liabilities and risks to their offshore partners. A good example is when a company will turn over the job of managing their payroll, they will gain the freedom from this admin responsibility and will now focus on more complicated and time-sensitive business activities. Companies can also save from insurance liabilities paid for employees as these are passed on to their offshore partners. And the risk of being sued for compliance is eliminated as well since offshore companies are the ones required to comply with the regulations mandated by the laws and policies of their respective countries.
We know that time and effort is just as valuable as money when it comes to business ventures. Outsourcing is one strategy for you. The benefits you get are endless that is the reason why a growing number of companies have adopted outsourcing business model.