Benefits of Outsourcing in A Globally Competitive Market
Outsourcing is essentially a practice of hiring an outside organization to work on your non-core business functions. The concept of outsourcing is widely popular and is equally effective in helping businesses to get things done quickly with low investments. Business functions like payroll processing, accounting, IT management, marketing, and sales are some of the key functions that organizations prefer to outsource.
While start-ups feel the need to outsource some of these functions due to limited resource capabilities, large enterprises find outsourcing as a way to cut down costs. However, outsourcing is not all about cost savings. There are numerous benefits associated with this business model and if done right, it can bring a long-term success for your company.
Benefits of Outsourcing
If you’ve been thinking of outsourcing one or more of your functions, it is important to understand the concept clearly as well as realize the pros and cons of outsourcing. Knowing them will help you understand whether it aligns with your business goals or not.
Here are some of the important benefits that come with outsourcing:
- Access to Specialized Talents: Outsourcing enables you to access talents beyond your organization. This is particularly useful when you need specialized professionals to manage some of your business functions. This is equally beneficial for your in-house teams as well since it brings a fresh perspective and knowledge that can help your business to drive better results.
- Maximize Productivity: Shedding non-core business functions inevitably helps you in enhancing productivity. It essentially helps you to focus on tasks that are more important and avoids your employees to juggle between multiple activities.
- Lower Labor Cost: Outsourcing has a major advantage of low labor cost. You can hire an entire team of experts at the same cost of getting one full-time in-house expert. The same remote staff will again help you in keeping your business functions efficient, saving you more money.
- Flexibility: One of the advantages of outsourcing is that you can easily scale or reduce the number of resources working on your business functions, depending on the internal requirements and shifting market dynamics. You do not require getting into any long-term commitment, which is usually not possible when hiring employees internally.
- Stay Competitive: Outsourcing is extremely helpful for organizations that are starting out and have a limited budget and resources to manage business operations. It can easily help smaller and mid-scale companies to compete with the large enterprise without investing more. This eventually helps organizations to offer more competitive product/services to their customers.
- Minimize Risk: Every business involves some amount of risk considering government regulation, fast-changing technology, increased competition and more. However, outsourcing service providers take these factors into account and mitigate risk for you.
Outsourcing is indeed a competitive and cost-effective alternative for businesses. However, there are certain drawbacks too. These come in the form of:
- Lack of Control: Outsourcing essentially takes some amount of control from you on your business functions. This is because service providers often work remotely and keeping a consistent watch and control over the processes is difficult.
- Lack of Communication: Communication plays a vital role in the success of any business. However, working in different time zones and lack of proper communication channels can hamper the productivity to a great extent. This is one of the major drawbacks of outsourcing.
- Uncertainty in Quality: It becomes meaningless if outsourcing does not provide you the quality that you expect. To avoid this, it is important that you discuss the quality metrics upfront to avoid any issues later.
Enhance Outsourcing Collaboration Using Cloud Communications
Introducing cloud communications between your organization and the outsourcing service provider opens up possibilities for collaborative work with an increased emphasis on meeting your needs. The cloud enables a shared space, both for you and the service provider. This allows both parties to access data and business applications in real-time, without requiring any IT infrastructure. In addition, the shared digital space offered by cloud-hosted solutions ensures real-time collaboration, transparency and work audit-ability between both the parties.
The cloud services that make this possible is called SaaS or Software as a Service, which includes multiple communication applications that you can choose according to your requirements.
Let’s look at some of the common cloud communication services available through SaaS:
- UCaaS (Unified Communications as a Service): UCaaS is an application that is aimed to bring all sorts of communication channels together and unify into one single system. The application includes features such as VoIP based voice calling, video conferencing, instant messaging and emails that can be quickly accessed through a single interface. Working with your outsourcing partner with UCaaS ensures efficient communication, effectively addressing the drawbacks of the traditional outsourcing model.
- CCaaS (Contact Center as a Service): CCaaS is typically useful for companies that have customer support as one of their critical business functions. The application is extremely useful when you choose to outsource sales and marketing. The shared environment between you and the service provider, along with access to the latest data-driven tools lets you gauge the performance and quality of the service effectively. CCaaS comes with features such as IVR, analytics, agent supervision and CRM integration capabilities that provide increased up-selling and cross-selling opportunities.
Your business has enough on its plate. Outsource what makes sense for your business, choose a world-class SaaS technology solution and focus on what's important: your clients. Call 1-866-879-8647 or fill out an online form to request a no-obligation quote from an 8x8 product specialist.