Outsourcing business tasks is a perfect solution for companies, especially entrepreneurs, looking to scale and expand their business operations without spending a fortune on overhead costs.
Traditionally, businesses prioritize setting up their own in-house teams; however, the advantages of outsourcing business tasks are also well documented. Outsourcing has many advantages if you partner with experienced outsourcing companies.
Companies that have outsourced their non-core business task to third-party contractors have reported:
- Maximized efficiency and business growth
- Increased productivity of in-house employees
- Significantly reduced labor and operational costs
- Improved team collaboration and smooth business operations
In this article, we will be covering all the advantages and benefits that outsourcing has to offer in 2024.
What is Outsourcing?
In order to run smoothly, businesses rely on core and non-core business functions.
Core business activities are the ones that are directly related to making money and helping the company grow. On the other hand, non-core-business activities ensure smooth business operations but are not necessarily involved in business growth. These non-core functions include data processing and management, human resources management, logistics/warehousing, and more.
Since the non-core business functions have no direct influence on the company’s growth, most businesses partner with third-party companies to provide these services.
This strategic partnership allows businesses to optimize their operations and grow faster by maximizing their resources on their core business functions and empowering in-house employees.
Why Outsource Tasks to Third-Party Vendors?
Business owners have always preferred hiring a full-fledged in-house team. However, this business model can drain your business financially.
When you hire in-house, you will be paying higher monthly salaries and be responsible for paying employee benefits, including health insurance, retirement contributions, and more.
In addition, you will be paying for the hiring process, extra office equipment, extensive workspace, and expensive training programs.
On the contrary, outsourcing your non-core business tasks will help you save up to 70% in labor costs, allowing you to redirect your resources to business functions that matter the most.
Here are the Top 12 Reasons Why You Need to Outsource in 2024
1. Save on Labor Costs
The biggest advantage of outsourcing is drastically reduced labor costs, enabling you to save up to 70%. But you might ask: how does it work?
Most outsourcing companies hire people from countries with lower living costs than the US. This allows companies to pay lower salaries while providing decent livable wages.
The benefit is then transferred to the US-based businesses looking to outsource their business and connect with skilled professionals who may not be affordable in their own region.
2. Focus on Core Business Functions
As a company, your main goal should be selling your product or services and growing your business. However, non-productive and repetitive administrative tasks keep you from focusing on your primary goals.
By managing your non-core business tasks, outsourcing relieves your in-house team of extra workload and allows them to focus on what matters the most for your business. In the long run, this external assistance will make your employees more productive, helping your company achieve better results across the board.
3. Access to Top Global Talent
Due to high wages and labor shortages in the US, hiring skilled professionals can be difficult and unaffordable, especially for startups and entrepreneurs.
This is where outsourcing fills the gap by providing you easy access to the global talent pool, enabling you to hire skilled individuals remotely and at a fraction of the cost you would be paying for an in-house employee.
4. Cost-Effective Business Solutions
Outsourcing is the key for small businesses that want to grow without spending a fortune.
Let’s take the example of social media marketing. A small business doesn’t have the resources and the budget to have a dedicated social media department. However, they need to run digital campaigns and maintain a strong presence on all the relevant social media channels to stay relevant and competitive.
Outsourcing to a social media agency is the simplest and most cost-effective solution that can enable every business, no matter how small, to have a strong social media presence without breaking the bank.
5. Outsourcing Companies are Always Motivated
Third-party contractors are usually more enthusiastic and motivated to provide exceptional services than your in-house employees.
This is because the growth of outsourcing firms depends on your success and referrals; therefore, they are always dedicated to bringing satisfactory results for your business.
We always recommend giving your outsourcing partners realistic goals and paying them well for their sincere efforts.
6. Quick Turnaround Time
Getting the work done as soon as possible is the best way to operate a business in this competitive environment. However, many small businesses don’t have access to skilled resources that can deliver quality work on tighter deadlines.
Outsourcing it to professionals makes it possible for you to deliver your services faster and in a more reliable way.
In addition, collaborating with an outsourcing company operating in a different time zone means you can fulfill your tasks even when your in-house team is off.
7. Better Customer Support
Good customer support will always tip the scale in your favor. Having an outsourced customer support service gives you great flexibility and enables you to provide round-the-clock support. This extended support improves the overall customer experience by a huge margin.
These outsourced firms have access to the latest technological tools and provide support across multiple channels, including phone calls, email, and social media. This strong presence allows businesses to meet customer needs more efficiently, leading to strong customer loyalty.
In addition, outsourcing your customers means you don’t have to pay for recruitment, onboarding, and expensive training programs.
8. Increased Employee Productivity and Growth
In busy seasons, outsourcing can be a lifeline for your in-house employees who are overwhelmed with extra workload.
By onboarding an outsourcing contractor during seasonal demands, you not only improve the workflow but also make your employees more productive, empowering them to deliver their best work.
Additionally, partnering with external contractors allows your employees to learn and grow. When you onboard skilled individuals on special projects, your employees get to pick up new skills and get insightful training just by working alongside external resources.
This strategic partnership transforms your employees, encouraging them to hone their skills and foster a better collaborative work environment.
9. Flexibility to Scale
Outsourcing provides you with unmatched flexibility when it comes to scaling your business. Your outsourcing partners can adjust their services to keep up with increased demands without having you worry about it.
Imagine having the ability to increase or decrease your team without worrying about the hassle related to hiring and potentially laying off staff. This flexibility increases your business efficiency and saves you a fortune, ensuring you only pay for the services you need.
10. Reduced Business Risks
Entrepreneurs and SMEs face multiple challenges and risks during business expansion. Without access to top professionals who are experienced in the relevant industry, small companies are bound to make wrong decisions and bear significant financial loss.
Outsourcing is the most cost-effective and efficient way for businesses to overcome challenges and mitigate business risks. By having access to seasoned professionals, your company will be in a better position to make informed strategic decisions, leading to growth and sustainability.
11. Access to Emerging Technology
As discussed earlier, partnering with a reputed outsourcing company gives you access to top global talent.
The key benefit of working with industry professionals is that they invest in cutting-edge technologies and implement industry best practices to ensure desired results. For example, a business outsources its IT needs to a professional third-party service provider who has a top-of-the-line IT infrastructure in place.
This strategic partnership allows the business to leverage state-of-the-art technologies and improve the efficiency of its IT operations without spending a fortune on buying these expensive tools.
12. Increased Business Efficiency
In addition to being cost-effective, outsourcing significantly increases the efficiency of your business.
Outsourcing specific business tasks means you no longer have to worry about them. This partnership relieves your in-house team of extra responsibilities and empowers them to focus on your core business competencies.
Furthermore, having external expertise to guide your employees will improve business functions by multiple folds, resulting in increased productivity and efficiency.
Wrapping Up!
Undoubtedly, outsourcing is gaining traction among businesses, but it still requires strategic planning, which includes analyzing your business’s needs. The best way to outsource is to find a partner that aligns with your set business goals.
We recommend choosing an outsourcing company that specializes in the skills you require and offers the best solutions possible, ensuring the desired results for your business growth.
Are You Ready to Outsource?
At OWL, we are motivated by your success!
For us, outsourcing is all about providing top-notch services and support that help you save on business operations and gain a competitive edge.
By partnering with OWL TPS, you will be able to handle a wide range of business operations, including data entry management, customer support management, administrative tasks, and much more.
Connect with us now, and work with the top global talent to scale your business faster and optimize your business operations.
