The Advantages of Outsourcing
Outsourcing is a common practice for major companies today, because it allows those to save serious money. Outsourcing means to give some common tasks that are supposed to be made within the company to other companies. For example, Customer Support of banks is mostly ensured by other companies, which talk with the clients of banks about the common problems that they encounter.
Outsourcing for small companies
While in the past, outsourcing was the privilege of corporations and large companies, today it is possible for small companies to outsource also. It is important to mention that not only the financial aspect is important, but also others connected with productivity.
With access to new technologies, the efficiency will grow, and the speed of production will also increase.
Activities such as IT and customer support can be externalized. Usually, the outsourced activities are divided into two main categories: implementing and developing basic applications on one hand, and the backup and security activities on the other hand. Here are the advantages of outsourcing.
1. Reducing the capital costs
The fixed costs are converted into variable costs, and the capital can be used for new investment. Especially if we are talking about startups, the costs of maintenance, support and service are huge. The best idea would be to outsource those, because the costs will be smaller, and the managers of the newly founded company can focus on other vital activities that determine a successful start.
2. Increased efficiency
In the case of companies that do everything by themselves (research, marketing and distribution, the costs are huge, affecting the clients. saving on a big scale in a healthy cost structure though outsourcing will bring real competitive advantages of outsourcing.
3. Redirecting the workforce
For temporary projects, the costs with personnel can be huge. The temporary employees might not be familiarized with the ambiance in the company, and they are not always as good as expected. In those cases, outsourcing allows managers to use the human resources where they are truly necessary, while the outsourcing company takes care of other things.
4. More support for new projects
A good outsourcing company allows you to start a project instantly, as you have the necessary base. The project within the company means weeks or months of training, and major investments that are not justified as long as there is the possibility to outsource.
5. Reducing the risks
Any investment comes with a risk, and while the outsourcing company can’t eliminate those, they can at least reduce those. The market, the competitors and the financial conditions represent important changing factors. It is hard to fight those fluctuations, but with externalization, the outsourcing company manages risks in your name. Moreover, the outsource companies are objective, so they can take better decisions in their area of expertise.
Outsourcing represents the key for the future. If your company still manages its own call center, its own IT department or its own transportation, maybe it is time to surpass your competition by using the modern outsourcing methods.