Are you looking to outsource your non-core business tasks but confused about making this drastic shift?
If yes, then we recommend going through this extensive guide to discover how outsourcing can solve all your business administration bottlenecks.
In this blog, we will discuss:
- Four Clear Signs Your Business is Ready to Outsource
- You are Spending Way Too Much Time on Non-Core Business Tasks
- Your In-House Team is Unable to Keep Up with the Demand
- You Cannot Afford Hiring Professionals with Specialized Skills
- Frequently Asked Questions (FAQs)
- Final Thoughts
Key Takeaways
- As per Statista, the Business Process Outsourcing market is projected to reach a whopping US$0.41tn globally in 2025.
- Outsourcing is not just about reducing labor costs; it has become an effective business strategy for maximizing business operations and outrunning the competition.
- In order to keep up with demand while maintaining quality, you can outsource certain functions like customer service, IT support, or fulfillment.
- Outsourcing repetitive and non-core task activities can open your schedule and allow you to focus on strategy at the big-picture level.
Everyone wants the financial perks of a businessman, but let’s be honest: not many are willing to put in the effort required to run a successful business.
On one hand, you get all the thrill, and on the other, it can get quite overwhelming when your business starts to scale up.
This is where outsourcing helps businesses to leverage global talent, reduce overhead costs, and increase productivity. As per Statista, the Business Process Outsourcing market is projected to reach a whopping US$0.41tn globally in 2025.
Outsourcing is not just about reducing labor costs; it has become an effective business strategy for maximizing business operations and outrunning the competition. It allows you to successfully position your business for growth while helping you to keep your expenses to a bare minimum.
Lee Quan You, the former Prime Minister of Singapore and one of the founding fathers of the modern Singaporean state, says that if you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.
But now the question is how would you decide that it is the right time to take the leap?
Here are four clear signs that give you the green signal to hop on the outsourcing wagon.
Also read: In-House vs. Outsourcing: Which One is More Effective for Your Business?
Four Clear Signs Your Business is Ready to Outsource
First Sign: You are Spending Way Too Much Time on Non-Core Business Tasks
You only have so much time as a business owner. If you’re regularly swamped with tasks such as bookkeeping, administrative work, or customer support instead of working on growth and strategy, that’s a red flag.
The Problem
You went into business to innovate, not to reconcile accounts for hours or handle social media. All of these are time-consuming jobs that distract you from doing what you do best—growing your business and serving your clients.
The solution
Outsourcing repetitive and non-core task activity can open your schedule and allow you to focus on strategy at the big picture level. These tasks can be handed off to virtual assistants, specialized agencies, and freelancers.
Example
Let’s say you are a start-up founder, balancing marketing, sales and operations. By outsourcing content creation and customer support, you will be able to spend more time to improving your product/service and acquiring new customers.
Second Sign: Your In-House Team is Unable to Keep Up with the Demand
Growth is wonderful until your business reaches a certain point where you don’t have enough resources to keep up with order volume, customer service inquiries, or project requests.
If your business has been consistently missing out on deadlines, having customer service delays or falling short of demand, outsourcing may be something to consider.
The Problem
Your in-house team can only do so much until burnout sets in, causing employee overload, reduced productivity, more mistakes, and not-so-great customer experiences.
The Solution
In order to keep up with demand while maintaining quality, you can outsource certain functions like customer service, IT support, or fulfillment.
Example
Imagine you are an e-commerce store that has recently gained popularity among your target audience. Now you are going to experience your first holiday sales boom that will most certainly overwhelm your in-house team due to a large number of order processing and customer inquiries.
By outsourcing your order fulfillment and customer support to a third-party company, you can make sure that your operations remain smooth without exhausting your in-house team.
Also read: Overcoming Recruitment Challenges with Remote Hiring
Third Sign: You Cannot Afford Hiring Professionals with Specialized Skills
Many start-ups and small business setups struggle because they don’t have enough resources to hire experienced professionals. If you are based in the US, you have to pay high salaries to on-board a full-time specialist.
If your company cannot afford to have a full-time employee in key areas, it is better and more cost-effective to outsource than to hire and train a new employee.
The Problem
It is expensive to recruit skilled professionals in-house and costly to train someone from scratch. Also some deliverables require niche expertise that you don’t have in-house.
The Solution
Outsourcing offers you the opportunity to tap into world-class talent as required without the financial commitment of bringing on a full-time employee.
Example
In a hypothetical scenario, a small business that requires a new site has two options: It could spend months learning web development, or hire a freelance web designer to do the job professionally without the hefty salary commitment.
Fourth Sign: You Need to Grow Your Business Quickly and Efficiently
Growing your business requires commitment and consistency.
If you are looking to rapidly scale your business, outsourcing can help you grow without having to deal with the risks and costs associated with on-boarding an in-house team quickly.
The Problem
When companies are looking to scale rapidly, they often end up with unsatisfied customers, poor customer service, and exhausted in-house employees.
The Solution
Partner with professional outsourcing companies with proven track records to scale your businesses efficiently and seamlessly.
If you require an extra pair of hands during a seasonal boom or want to on-board professionals with specific skill sets, outsourcing will allow you to get the job done without the need to commit to long-term.
Example
In order to swiftly reach a wider audience without overburdening its core personnel, a SaaS company introducing a new product may choose to outsource marketing and customer support.
Also read: Why OWL TPS is the Best Choice for Hiring Virtual Assistants
Frequently Asked Questions (FAQs)
We have answered the most frequently asked questions for your guidance and assistance.
Can’t find the information you’re looking for? Feel free to contact us – we’re here to help!
- Are there any cost benefits of outsourcing global talent?
Yes, you can save up to 70% in labor cost by outsourcing your administrative tasks. Outsourcing companies recruit professional resources from geographical regions with low cost of living, which makes them affordable compared to in-house employees.
- What business tasks should I outsource as a priority?
We recommend outsourcing all the non-core and repetitive tasks that have no or less contribution to the growth of your company and are highly time consuming. Some of the examples of such tasks include administrative work, customer support, and bookkeeping.
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- Is outsourcing beneficial only for large scale enterprises?
Absolutely not! Businesses of every size can equally benefit from outsourcing. start-ups and small scale businesses are the ones that leverage from outsourcing by accessing professional services at reduced costs.
- How can I partner with the best outsourcing company?
First, we recommend identifying your needs and requirements. List them down and then search for companies on the internet. Short list the ones with good reviews and hire the one that fits the best as per your needs.
- Can outsourcing affect the quality of my services?
No it will not affect the quality of your services, given that you partner with a reputably outsourcing company. Having a professional outsourced team allows you not only maintain your business efficiency but also significantly improve it by setting clear expectations and realistic deadlines.
- Is outsourcing cost-effective in the long run?
Yes, outsourcing will help you cut on overhead costs overtime. By outsourcing services, you get access to specialized skills without long-term commitments and save a significant amount by not having to pay high salaries, benefits, and many operational costs.
Also read: 5 Essential Tips for Hiring the Best Virtual Assistant for Your Business
Final Thoughts: Is Outsourcing Right for Your Business?
You can’t go wrong with outsourcing business tasks; however, it is crucial to analyze your business needs. This is because outsourcing is not a one-size-fits-all solution.
For your understanding, we have mentioned all the key signs which indicate that this time you need to consider taking the help of a reputable outsourcing company and delegate all non-core tasks to managing costs, and scale efficiently.
This shift in your employing strategy will help you focus on your core business, allowing you to grow and provide value-driven services to your end consumers.
As one of the preferred outsourcing companies in the US, we will help you assemble and maintain a team working solely for you and acting as an extended arm of your organisation.
Contact us now and empower your core employees so they can focus on high-value tasks to drive growth and success.
