Benefits and Keys To Success When Hiring Outsourcing Companies
The cost of running a business is constantly increasing and organizations are looking for ways to lower their overhead without sacrificing quality or efficiency.
Many companies are outsourcing a variety of business functions to increase cost-efficiency and improve their bottom line. Here's why you should consider outsourcing and how you can maximize your investment:
What Are Outsourcing Companies?
A business outsources its operations by hiring an outside company to provide services or handle operations instead of using its own employees to perform tasks that have been traditionally done in-house. Outsourcing is particularly common in industries in which there's a shortage of labor or the cost of the local workforce is too high.
Outsourcing companies, which are often referred to as service providers or third-party providers, will coordinate workforce (e.g., hiring and payroll) and supply the necessary equipment (e.g., computers) to carry out the tasks or services either in its own facilities or at the clients' location.
There are different types of outsourcing companies that provide a variety of services. Here are some key functions that are commonly outsourced:
- Manufacturing: outsourcing eliminates the time and high cost associated with building a manufacturing plant. It allows you to leverage the expertise and facilities of global manufacturing outsourcers to get your products to market quickly and economically.
- Finance and accounting: most small businesses don't need full-time accounting staff but do require the professional expertise of these professionals. Hiring a "fractional CFO"allows you to tap into such expertise without a large overhead.
- Technology: using a cloud-computing service provider allows companies to leverage the latest software and platforms, such as project management, customer data management, and telecommunication, without a high upfront cost or the need to hire a large IT team.
- Administrative tasks: by delegating administrative functions to an external provider, companies not only save on labor cost but also operating expenses such as rent, equipment, and utilities.
- Human resources: small- and mid-size companies can often benefit from working with a Professional Employee Organization (PEOs) that provide services in processing payroll, coordinating employee benefits, and ensuring HR compliance.
- Sales and marketing: companies can delegate a variety of sales and marketing tasks, such as social media management, website updates, prospect contact, product fulfillment, and customer relationship management.
The Benefits Of Using an Outsourcing Company
There are many advantages to using an outsourcing company for various business functions. It allows you to:
- Free up in-house resources to focus on core business activities that contribute to the growth and success of your organization.
- Save cost by reducing overhead such as rent, equipment, and utilities.
- Improve efficiency by streamlining back-office functions and administrative tasks.
- Respond to market demand, which can be seasonal or cyclical, by leveraging the flexibility and scalability inherent in the outsourcing model.
- Tap into specialty knowledge and expertise of an outsourcing company to improve quality and cost-efficiency.
- Reduce the time and resources required to onboard in-house staff.
How To Maximize ROI When Working With an Outsourcing Company
Working with outsourcing companies can be a sound investment in your business. Here's how you can get the most out of it:
- Identify tasks that, when outsourced, will allow you to reduce cost or increase revenues.
- Focus on areas that require specialized knowledge that's not your core competence.
- If you're in a highly regulated industry, ensure that your outsourcing company meet compliant standards (e.g., HIPAA.)
- Do your due diligence to check references and experiences of the vendor, especially when dealing with sensitive information, such as finances or legal issues.
- Ensure that the service provider offers extensive customer support so you'll get the help you need when you need it.
- Explain your process, objectives, and expectations clearly before committing to any project.
Conclusion: the Key to Ongoing Success
When you're working with an outsourcing company, regular and effective communication is the key to success.
Using technologies such as UCaaS (Unified Communications as a Service) and/or VoIP, you can improve communications with your vendors with video conferencing, messaging, and file sharing to support collaboration and ensure that you're getting the best services possible in a timely manner.
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.