10 Reasons Why You Should Outsource

Source: inc.com

Outsourcing is a company’s strategic decision to lower costs and improve efficiency by contracting another company or an individual to provide services, conduct operations, or perform tasks that were previously done from within. It involves contracting business functions to another company. Outsourcing within your country is onshoring while outsourcing outside is offshoring. You may outsource small projects to independent contractors or hire a major organization to handle specific functions such as customer support.

When making the decision to outsource, ensure that it’ll boost your company’s bottom line by reducing operational costs. However, pricing shouldn’t be the only deciding factor when choosing a vendor. Consider what your business will gain and compare with other vendors to make a profitable decision. Resources and technology, ability to meet deadlines, communication, and trustworthiness are factors to consider when outsourcing. Once you hire an outsourcing company or individual, they should handle all your business with little to no supervision, giving you time to focus on core issues. Here are reasons why you should outsource.

1. Access to skilled expertise

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Access to skilled expertise is among the top reasons why businesses outsource. According to PeakOutsourcing, companies are only as solid as the teams that build them. This is why outsourcing your tasks to people who can handle them better accelerate business growth and success. A company may find it challenging to hire an in-house high-end IT expert. However, outsourcing allows them access to the skilled expertise to scale their business.

2. It allows you to focus on core business activities

Business processes that aren’t suited to your company’s skills are better off outsourced to companies that can handle them better and within a short period. Outsourcing frees up the time and resources you need to focus on core business processes. With no IT or accounting department to run, businesses can devote their scope to work on core matters that drive the company.

Outsourcing employee management to a PEO agency can come in extremely handy when you plan to expand in another country. Hiring overseas is made easy by the benefits of PEO services which will focus on your international expansion fully. NHGlobalPartners is an example of one of the best agencies that offer PEO services.

Employees also get the time to focus on their primary duties and responsibilities. This increases workflow and allows for fast completion of company projects. For example, if you’re a marketing agency, consider outsourcing website development and maintenance to the experts so you can focus your energy and strengths on marketing tasks.

3. Low operating costs

Buying new equipment or moving to a new location can be costly. In such cases, outsourcing is more cost-effective than an internal business expansion. If your business’s growth calls for more space, consider outsourcing some operations, including data entry, telemarketing, or other tasks and processes that will limit the need for space instead of relocating.

This means you can still expand your business without having to move, making outsourcing less costly and more efficient. It also reduces costs by lowering the expenses of bringing in new hires. These costs may include onboarding, payroll taxes, health care, and other benefits, recruitment, and more. Working with outsourcing vendors instead of in-house hires lowers these costs, allowing your business to get the same amount of work done for less.

A payroll service is an incredibly important part of the functioning of any business. These services can greatly assist small businesses in particular with the administrative task of managing the payroll. These services ensure that a small business pays all of its employees promptly and helps small businesses manage taxes for their employee’s salaries. Click here to see TRUiC’s ranking of the 6 best payroll services.

4. Promotes growth

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While some operation overhead costs may be too high, you might need them to expand your business model, satisfy clients, or become competitive. Outsourcing becomes a better option if the expansion costs for handling those operations are too costly, it would take too long to implement, or render your business model inefficient.

For example, if you run a small hospital and would like to start accepting various insurance plans that your current staff can’t keep up with, outsourcing to a medical billing firm can be less costly than training and promoting existing personnel or hiring a more skilled team.

5. It offers risk management and continuity

During high employee turnover times, inconsistency and uncertainty can significantly affect your business. Outsourcing ensures continuity while minimizing substandard operation risks.

For example, suppose your accountant goes for an extended medical leave and the assistant accountant leaves. In that case, outsourcing the accounting function lowers risk and allows the business to continue operating while the accountant is away. It also gives you enough time to recruit a capable assistant without rushing because you’re understaffed.

6. It provides staffing flexibility

Through outsourcing, departments or operations with cyclical demands can bring in more resources whenever necessary. For example, the accounting department may be short-handed during auditing periods or tax seasons. Outsourcing provides the extra resources needed for a fixed period at a consistent period. Outsourcing to the same firm every time offers flexibility and consistency. You can then release the outsourcing firm once things slow down, increasing flexibility.

7. Internal staff development

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If you have a project requiring skills that your employees don’t possess, consider on-site outsourcing where contractors and other firms operate from your location. Allowing your people to work alongside them helps them acquire a new skill set.

8. Increases brand loyalty

Hiring highly qualified customer support staff backed by years of experience gives your customers the kind of service that keeps them coming back. However, hiring such in-house talent may be difficult to sustain due to the financial strain and the experience you need to put such a team together.

With an outsourcing company, you have access to such professional services that leave your customers feeling appreciated and cared for. This keeps them coming for more and may even refer you to others, increasing brand loyalty.

9. Access to the latest technology

Outsourcing firms are usually well-positioned with the latest technologies, development tools, and niche technologies they need for their operations. Outsourcing your processes to a company equipped with the latest technologies for your projects allows you access without spending a fortune on it, boosting your company’s bottom line.

10. Reduces recruitment inconveniences

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Recruitment is a time-consuming, challenging and costly process. It becomes more complicated if you lack the skills to find the right balance your business needs for successful operations. For example, if you’re recruiting for an IT position in your company, you wouldn’t know the right skill-set and experience required for the job. However, outsourcing the recruitment process ensures you get a team with the right skill balance.


Outsourcing is not just about cost-saving. As your business begins to grow, outsourcing can be an excellent way to disrupt the industry, access new skill sets, and promote innovation, repositioning your business in the market – especially at the executive level, and in the marketing arena. Contracting the services of a fractional CMO can prove to be a game-changer for organizations looking to transform their presence and optimize their resources..