The Ins and Outs of Outsourcing
Outsourcing essentially refers to the function of getting tasks or jobs completed outside of your organisation. It has been seeing an upward growth trend since 2014 with the market size for global outsourcing reached $92.5 billion before the pandemic. There are many different types of outsourcing and a great deal more benefits.
More than 93% of organisations are considering or have already adopted cloud services to improve outsourcing. Cloud technology allows companies to become more flexible and responsive to their markets, enabling faster global communication and growth. Contrary to popular belief, the main motivation for businesses making this move is not to lower costs by cutting jobs but to be more competitive and increase innovation.
There are many different types of outsourcing including multi-sourcing, knowledge process outsourcing, IT Outsourcing, but one of the most common being Business Process Outsourcing (BPO). This refers to outsourcing the more mundane business activities such as administration, correspondence, scheduling etc. Customer service and lead generation are also useful tasks included in BPO.
There are so many great things about outsourcing for both companies and contractors alike. It offers flexibility in terms of services provided, they can be tailored to exactly what the company requires and they are paying for those exact requirements. Flexibility is also great for contractors because although they are working within deadlines, they are often able to create their own working hours.
It is also easier to access expertise through an outsourcing company as they have vetted and screened all their employees already to ensure that they possess the correct qualifications, skills and competency to match the clients’ requirements. Although generally cheaper, this has nothing to do with the quality produced. Reduction in cost related to full-time employee expenses such as benefits. Outsourcing companies rely on their reputation and positive client reviews to remain successful in attracting future clientele so they are fully invested in creating top-quality output.
It is believed that outsourcing is only an option for large corporations, when in fact, the opposite is actually true. Outsourcing allows employees to focus on their core business operations while contractors take care of area’s they may not be experts in. Sites like Fiverr have allowed small business owners to access expertise at a fraction of the cost. With the focus being directed at core functions, there is an increase in productivity and an opportunity for company growth.
Another misconception is that businesses are more prone to data breaches if they outsource. The truth is that every major corporation is at risk. Outsourcing partners take extreme care to protect their clients’ information, often adding layers of security and constantly updating their protocol. With NDA’s, anti-virus software, cloud storage and modern tools such as YubiKeys, small outsourcing businesses as just as secure when handling sensitive information.
Outsourcing is not only economical and adaptable, but additionally, it promotes the opportunity for rapid growth. With cloud-based technology, it is more accessible, affordable and safer than ever. It really is a no-brainer solution for small and large companies alike.