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Most businesses around the globe are into outsourcing specific departments or activities of their businesses. There are many different reasons why companies have taken this path, the most common of which is the savings it offers. But will the cost of savings far outweigh the many risks that go with outsourcing? As a business person, are you prepared to turn over a portion of your business’ activities to a company from the other side of the globe, without guarantee if their service commitments will be fulfilled to the dot?
The best way to tackle this quandary is to first determine the possible areas of your business which will be better handled by outsourcing based on the benefits you will get out of it. The business processes you may consider for outsourcing are: IT support, HR – recruitment, payroll and secretarial services, accounting functions, marketing and sales activities and health and safety compliance services. Other non-critical tasks like cleaning services, delivery and installations and after-sales support may also be passed on to outsourcing. In fact, what you need to clearly identify is the core business and the related functions which will be critical to the implementation of new programs or plans for expansion, new products or services launching, etc. With outsourcing you and your staff’s efforts will revolve around the core business and any diversification plans to improve the business activities and sales performance.
After identifying the areas for outsourcing, you need to list down the perceived benefits which will be derived from this decision. Benefits such as:
Reduced Overhead Expenses
Maintaining a workforce along with the benefit entitlements is quite on the high side of business expenditures. Rates for outsourcing are usually a fraction of the cost of in-house spending.