Many companies—rather than handling certain tasks and services indoors—are opting for outsourced firms to take the reins. There are many benefits to this: you get expertise, have more time to focus on more pressing tasks, and more. But which services are the most popular to outsource? Who is doing most of this outsourcing?
In this article, we’re breaking down the wide range of outsourced firms that outsource, from outsourced accounting firms to outsourcing things like cleaning your office. Deciding whether or not to outsource depends on your time, bandwidth as a company from a working standpoint, and the amount you’re willing to spend on the services you need.
It also depends on the size of your company. Many smaller companies or even medium-sized companies don’t have the means to outsource their services; instead, they either try to handle them in-house or simply do without. Larger companies have the resources necessary to handle outsourced services they want to add to their arsenal. It’s not fair, but since when has business ever been fair?
According to Forbes, there are nearly 300,000 jobs outsourced by the United States per year. The main reason for this is companies are simply looking to save money while having access to reliable services. But there are many benefits to outsourcing. See below for more details.
5 Benefits of Outsourcing
Five of the most significant benefits of outsourcing are listed below:
Save money you would spend on hiring additional employees
Hiring an outsourced expert on a contract basis or through some other agreement is much cheaper than paying another salaried employee, or employees. Plus, you don’t have to train them, acclimate them to the environment, or potentially miss on a hire, setting you back even further.
Access to expertise that’s hard to find
Certain roles involve expertise that is hard to find in new employees. For example, an outsourced CFO, or chief financial officer, has experience and knowledge dealing with finances and has the expertise to make recommendations for your company, monitor your expenses, and help you make crucial decisions.
More time to focus on company matters:
As a business leader, you can’t spend significant amounts of time and money trying to implement a new service that takes time away from your already-existing demands. Simply allocating to an expert provides peace of mind and relieves stress, freeing up time for you to continue to do what you do.
Access to a bigger pool of talent
The best experts in the field you’re looking for outsourced services are likely not applying for your job. But as outsourced experts, they can often juggle numerous clients or focus solely on your business. You can peruse through different outsourced firms before making your decision and find the best solution for your specific company’s needs.
Stronger efficiency for your business
With an outsourced expert implementing a new service to your business model, your employees will have more tools at their disposal to make their jobs easier. If they have more resources to be successful, your business will continue to grow and improve upon what you specialize in. Expert insight can go a long way for a business in making crucial decisions and improving productivity as a whole.
These are just a few of the numerous reasons companies are choosing to outsource their service needs. But there are some cons as well, listed below. 3 Cons of Outsourcing
There are some potential drawbacks to outsourcing for some companies.
- You relinquish some control over your business: It’s not easy letting in an outside force to your business. It can be difficult to hand the reins over and trust an outsourced expert, especially if you’re a small business or young company.
- Potential lack of consistency: Compared to hiring a full-time employee to handle the services you’re looking to add to your business, an outsourced firm won’t be able to provide the same level of attention. There’s some security in hiring a new employee that companies prefer in many cases.
- Less flexibility: Many outsourced firms lock you into a certain contract or time period for their services. If you decide you no longer want the services you’re paying for, you could just be out of that money you already spent. With a new employee, you can pivot responsibilities and roles.
Which Services Are the Most Popular to Outsource?
More and more, companies are outsourcing their services to larger pools of industries. Many things you simply wouldn’t do by yourself, like trying to design your own kitchen. That’s why you would pull out your phone and search for something like “kitchen designers near me”. We can’t be good at everything. That’s why we outsource.
But who outsources the most? Or rather, what services are in the most demand for companies as they look towards outsourced firms? See below for more information.
Accounting
Companies that don’t primarily work with numbers aren’t very keen on them, and they don’t want to be. Hiring an outsourced accountant simplifies a lot of your business issues and makes it much easier to track your finances and expenses. You can have automated accounting reports they can provide, and they can make recommendations about future changes.
Marketing
Marketing strategies are always evolving and changing shape. Because of this, a marketing firm can perform certain tricks of the trade you didn’t know existed before. They can also provide content marketing, SEO services, and web development and design services.
IT Services
Information technology is a difficult field that is very dense and can have countless difficult problems. As a business owner, you simply need your technology and data software to perform smoothly. Outsourced IT professionals can monitor your systems, predict and prevent issues, disasters or shutdowns, and more.
Customer service and contact centers
Companies often don’t have time to personally answer every customer service question or inquiry. Rather, they allocate this to off-site outsourced experts who have the bandwidth and technology to receive high volumes of calls or requests.
Social media services
There are many different tools and platforms that social media can provide, including gathering more eyes to your brand or seeing who to target as an audience. Social media specialists can utilize all of these tools, provide reports about performance on the web, and develop strategies to maximize visibility or promote a specific promotion.
Conclusion
If you have the resources for it, outsourcing can make businesses of all industries stronger. You need experts on your side, and you need to be able to save money for their services. Outsourcing is cheaper than hiring and often provides a stronger return on investment.