Over the past year, and well into the new one, the effects of COVID-19 are still taking their toll on the global economy. Small, medium, and even large-scale multinational companies worldwide are cutting expenses in order to stay afloat. For these businesses, keeping up financially in these trying times is undoubtedly a challenge and a pressing concern.
Fortunately, there are several ways for companies to save money on operational costs without sacrificing the quality of the work. Outsourcing services is one, if not the most effective, way to save money while fulfilling a particular task or function in your company.
In fact, businesses have been using this strategy for decades—in workforce services, security personnel, human resources, payroll staff, you name it. This allowed companies to focus on their key functions and services while the workforce agency takes care of other responsibilities that may be considered repetitive or less essential.
On the other hand, offshore outsourcing has been around for almost two decades. The emergence of the Internet as a primary tool for communication and correspondence between partner companies has allowed it to thrive.
There is a reason this option continues to be one of the most viable for small- to medium-scale businesses to exploit. The only essential resource needed for outsourcing is the Internet—and to an extent, the talents who could do the job—and who do not have high-speed Internet these days?
How Outsourcing Can Save Money
Outsourcing is certainly a must-have if you want to hire a team of experts to do a particular job that isn’t part of your core tasks and operations as a business.
One typical example is a customer service representative who is in charge of answering phone calls and other forms of inquiry from both existing and prospective clients. While it is an essential part of the job to connect with the consumer base and let them have a positive experience with the brand, it is not a critical function and can be outsourced to a third-party provider.
The good news is that it is only one of the many benefits of outsourcing. While it may not be immediately obvious to some people, offshore outsourcing can really help you save money. Below are just some of the ways to save money as a business owner while outsourcing your non-core tasks and responsibilities:
- Save money on workspace rent – Outsourcing allows you to work on back-office, including customer service tasks, without the need to rent a bigger workspace. This will give you enough time to adjust while you are slowly expanding your business.
The last thing you need is a large office that you are struggling to pay the rent for because your company profit is too low to pay for everything.
- Cost-cutting in purchasing software and equipment – If you choose to outsource some tasks, you won’t need to buy the necessary software and equipment required to do them. That’s because your outsourcing company already has the appropriate tools at its disposal.
And because they offer expert services to more than one client, they will always have the latest equipment and software to improve their work quality.
- Training expenses are kept at a minimum – Hiring new employees and training them will always cost you something. Additional education, training programs, seminars, and other workshops may benefit you, but it’s not always the case.
If you are just filling up a temporary position for a one-time project or need a few more people for some time, such as a peak season, hiring and giving them all that training will only be a waste of time and resources. Having a contractual partnership with an outsourcing company makes more sense.
- Get the job done at a lower cost – Working with an outsourcing company halfway across the world is cheaper than directly hiring a professional with the same level of experience and expertise.
In fact, in some instances, those working in developing countries are even more knowledgeable or have higher expertise and better work ethic than the employees available in your area. You just have to look for the best option around.
- No need to spend money on hiring and recruitment agencies – Hiring and recruitment processes are tedious, take time, and cost money. On the other hand, looking for your ideal outsourcing partner company is not only cheaper but also builds long-term partnerships.
Common Misconceptions about Outsourcing
Given that there are countless perks in cost-effective outsourcing, there are still some misconceptions that must be clarified. While companies often choose it due to its cost-effectiveness, outsourcing offers more than just cheaper services.
Professionals who work in outsourcing companies have years of experience and the right tools for the job. And because they are already experts in their chosen fields, expect only top-tier results for their performance.
Another misconception about outsourcing is that it is only accessible to large companies and businesses—it is not. Outsourcing became popular because it gave startups the chance to employ top professionals in their respective fields, leveling the playing field against bigger firms.
Finally, outsourcing is not a band-aid solution that may need to be replaced by a better solution over time. If planned and executed correctly, outsourcing can be a long-term solution for companies who need regular non-core tasks and cheaper rates.
As the Internet connects companies from different parts of the globe, outsourcing is becoming less of an option and more of a necessity. In this time of pandemic when mobility within urban locations is limited, outsourcing offers a solution—a steady and quality supply of services, most of which can be done from the comfort of their own homes.
Business owners (BO) should look forward and ensure that the enterprises they are building are future-proof. One of the best ways to do this is to build networks and partnerships through outsourcing. These corporate relationships would not only keep them up to date with the latest strategies but would allow them to reap the benefits of information technology.