What is outsourcing?
Outsourcing is when a company brings in another service to take care of certain parts of the business. It’s a tool that is meant to help, not take over, a business. When you choose to outsource certain parts of your company, you reduce expenses and you’re able to focus on the main components of your business.
Today, more than half of all businesses choose to outsource at least one area of their company, compared to only a third in 2019. More and more businesses are realizing that this saves them more time and money. Your expertise most likely lies within the focus of your company, and that’s where your time and energy should be focused.
Human Resources (HR)
This includes everything from selecting potential candidates to terminating employees, and it’s probably the most outsourced part of any business. While there are tools that help with HR, many companies start by outsourcing the payroll division of human resources. Many components of HR require specialized skills and can take time away from important business matters, so this is a good place to start when considering what to outsource.
This division of HR isn’t always outsourced. Many companies post job openings and then sift through countless applications in search of the right candidate, probably not knowing that there are agencies that specialize in recruitment marketing. Recruitment marketing is a highly specialized technique in which your business is marketed towards potential candidates. But your company isn’t marketed towards everyone; By using a recruitment marketing agency, they only seek out candidates who possess the necessary skills and talents to match your listed requirements.
Information Technology (IT) Services
Like HR, IT services require specialized skills and cover a broad spectrum of tasks. As your business grows, you’re going to require top-of-the-line computers and software (and the people who know how to use them) to protect your online sector from viruses and other cyber threats.
It’s best to get a financial expert to deal with all of your accounting tasks. Like HR and IT, this is another sector of business that is made up of several tasks. Simple mistakes can lead to interest, fees, and penalties. A professional accountant can save you the headache of dealing with all of your financial matters, and save you from the risk of potential errors.
Once your business begins to expand, it’s hard to keep track of every issue that may occur with a customer all on your own. When choosing a service to handle your customer support system, make sure you go with a company you trust to take excellent care of your customers. Slacking in this department can decrease customer retention.
Shipping and Handling
Customer problems usually occur when a customer has placed an order and something has gone wrong with that order. If you’re a company that offers to ship products to customers, this may be another sector of your business that’s good to outsource. The shipping and handling of products can be a hassle, especially when your company grows in size.
The Downside to Outsourcing
Unfortunately, there are some disadvantages that come with outsourcing. For one, you lose some privacy since intimate details about your business will be shared with outsiders, so make sure you trust the service providers that you’re outsourcing to. You also become very dependent on each service you’ve hired to help. Finally, as with everything related to business, it comes with a monetary cost. You may need to shop around to see who will provide the best service for the best cost.
Some businesses have the means to hire for these roles within their company, eliminating the need to outsource. However, many businesses don’t have that same option. If you do choose to outsource, always start with the hardest tasks that neither you nor any of your employees have the proper knowledge to complete. Once your company begins to grow, you can choose to outsource more and more tasks, leaving you and your employees to focus on the most important parts of your business.