Why Outsource?

10 reasons why outsourcing is
good for your business

Get in Touch

Get in Touch

Outsourcing is the process of delegating a company's business process to third parties or external agencies. It is a hotly debated topic and there are many pros and cons so what are the benefits? Here are 10 reasons you might want to consider it for your business.

1. Avoid salary costs

Often with small business there is a limited skill set internally and to bring in a dedicated professional could be expensive to the business and you may not need to have that resource on a full-time basis. Taking the example of a marketing professional. A full-time manager could cost your business over £35000 in salary alone not to mention the holiday and pension contribution costs associated with the role. There are significant savings to be made in outsourcing and not only do you not pay the full-time salary of an outsourced resource you often get greater skill and experience from a specialised agency than you would from an internal resource.

2. Focus on the 'day job'

Outsourcing enables you to focus on your core business processes while delegating sometimes mundane time-consuming processes to external agencies. As a skilled CEO of a small business you may be capable of running marketing campaigns or processing your accounts but is this the best use of your time and skill? Getting it managed externally means you can focus on the day to day operations of your business where you are needed.

3. Free up internal resource

Freeing up internal resources that could be put in to effective use for other purposes is also one of the primary benefits realized when companies outsource. Often staff in small business have to multi-task but it is not always playing to their key strength. By outsourcing activity, you allow your salaried staff to do the job they are best skilled to do which benefits the bottom line.

4. Cost savings

Many times, businesses have to suffer internal resource crunches. Outsourcing allows you to gain access to resources not available internally.

5. Short term solution

Outsourcing also enables companies to realize the benefits of re-engineering. As businesses grow, demands on staff can change and outsourcing enables you to grow your business without the risk of taking on personnel only to have to release them at a later date. Sometimes a business needs to resource a short-term project and outsourcing can facilitate this need

6. Facilitate growth

Some companies also outsource to help them expand and gain access to new market areas, by taking the point of production or service delivery closer to their end users.

7. Bring in new skills

Business growth can often dictate the need for new skills that existing resources cannot respond to. You may not have the skills internally to build a database, develop a social media presence, design a brochure or website, acquire another business, develop new production processes and outsourcing can resolve this problem

8. Training your staff

Outsourcing complicated activities can enable the development of internal staff. By bringing in experts in a given field you can have your own staff shadow them and learn new skill sets. Ultimately the external resource may not be needed, and you own staff will be trained sufficiently to manage.

9. Get the job done quickly

If you need to get going on a project straight away it might take weeks or months to hire the right people, train them, and provide the support they need. Outsourcing will mean that you can respond to market demands quickly and professionally.

10. Expertise to compete with the 'big boys'

Most small firms simply can't afford to match the in-house support services that larger companies maintain. Running a dedicated human resources or marketing department is often out of the question for a small business. Outsourcing can help small firms act "big" by giving them access to the same economies of scale, efficiency, and expertise that large companies enjoy.

Related posts

To see how we may use this information, take a look at our privacy-policy