If you want to see your business grow fast, outsource. It is as simple as that. Outsourcing is one of the most cost-effective ways to enhance one's business profits; increase efficiency; increase productivity; and harness talent from all over the world. In short, by outsourcing, a company frees its own resources to then focus purely on its core competencies.
A company usually outsources to fill a vacuum in its own setup. It could be in the form of missing expertise in a certain field; lack of adequate hardware or infrastructure; to save costs by hiring low-cost talent from Third World countries, thereby bringing down the overall operational costs.
So, let's see in detail how outsourcing helps a company to grow its business fast.
1.Say, for instance, that you are a home-based start-up company in the software development business. You wish to hire the services of an expert PHP developer but are only too aware of the steep salary they command. It is n investment you just cannot afford at this fledgling state of your business. Now, imagine if you were to outsource PHP development o a reputed outsourcing vendor in India. He would assign a fulltime PHP developer for your work, and at just a fraction of the fancy salary you would have had to pay for someone similarly qualified back home. Work done, money saved, and your budget unhampered.
2.Outsourcing saves you on operational overheads. An employee does not just cost the company a salary, but also other overheads that dramatically increase the organization's expenses. This includes office space, employee benefits like pick and drop facility, paid vacations, paid sick leaves, employee provident fund, and compensation for handing out the 'pink slip'. In outsourcing, you are dealing with a virtual entity – it could be a freelancer or a remote or virtual employee – both of which are sitting far away in some Third World country, but working for you. All you have to pay them is for the work they do for you.
3.Outsourcing saves you on hiring a new employee and increasing your overheads. Hiring and recruitment is a tedious and time-consuming process. Outsourcing saves a company from this. For example, you can outsource work to good content writers, SEO experts, a website designer and database management expert, all without them having to work physically from your office. This is particularly excellent if you are a home-based business where hiring outside help would not only be impossible but also impractical. But, on the other hand, if you outsource these aspects of your business, then you and your 'virtual team' can still manage to collaborate and deliver the targets equally efficiently.
4.Outsourcing helps you harness the best talent in the field and that too a very affordable cost. Getting an expert at the price of a novice is one of the biggest windfalls of outsourcing. Software developers and IT experts in the UK and the US come with a steep price tag, out of reach of start-ups and small businesses. However, the same professionals from India – long acknowledged as the IT outsourcing hub of the world – are easily within the budget of even a home-based entrepreneur.
5.Outsourcing helps you free your resources from tedious, time-consuming tasks that can easily be done by anyone with a computer and an internet connection. Maintaining payrolls, answering customer calls, maintaining an updated database management system, scanning X-rays – all these are time-consuming tasks that do not really require much expertise, juts a lot of time. For a small price, these tasks can be outsourced and your in-house employees left free to be used for strengthening your company's core strategies and competencies.
So, outsourcing is a sound business decision because it can really make your business grow fast!