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Outsourcing has certainly increased in popularity to the point where instead of being an option that companies can explore, it’s becoming the norm. Instead of outsourcing being used mainly by large companies, small to medium business have started to embrace this concept and are really beginning to benefit from it as well. It has come to the point where a lot of backend processes are outsourced.
The benefits that outsourcing has given to businesses starts with the enormous savings that are to be had that now allow companies and individuals access to skills and expertise that would otherwise have entailed large investments. However, businesses that want to take advantage of the benefits of outsourcing should first outline the goals that they want to achieve and then also consider the risks that the move will entail.
Here are some of the benefits of outsourcing that businesses can take advantage of:
Focus and growth on core competencies – as back-office processes are outsourced; businesses do not have to worry about hiring the right people and training them to take care of these processes. Instead, a business can focus on their core competencies and manage their resources properly in order to gain an advantage over their competitors.
Increase in productivity and customer service – due to the fact that outsource companies are located in different time zones, a lot can be accomplished overnight even as the business closes. Aside from that, customers who need assistance can receive it no matter what time of the day they call. This will lead to more customers receiving the help they need any time they require it. Clients will also benefit by receiving the answers they require in a short amount of time, most will receive the information they need immediately rather than having to wait for the business to open.
Increase in efficiency – as a business outsources certain processes, they are also bringing in expert help from outsource companies who can partner with the business in identifying processes that can be improved and help streamline them. Apart from getting business processes simpler and more effective, large effects can also be seen in the savings that the business will see.
Acquire skilled employees – as the outsource company takes care of training and improving employees to gain the level of expertise the business requires, it removes the burden from the business to spend on the training of these employees and providing the infrastructure that they need. The business then gets skilled employees at a fraction of the cost it would require had the business hired and trained their own.
Lower cost, increase savings – a business can gain the people they need for the job at a lower cost compared to getting local employees. As cost of living differs between countries, the cost of hiring a person in Asia is much lower compared to hiring someone in the UK. It’s estimated that businesses that outsource some of their processes end up paying 60% less which can translate to a definite increase in savings. This means a business will have access to more resources that can be invested in other areas for the business to increase their profit.