The Ins and Outs of Outsourcing and the Benefits Moving Forward
Society is no stranger to the pressures of employment and supply and demand. However, as the pace of life increases, so does the need to keep up. As such, outsourcing has become the new “go-to”.
High unemployment rates in the US today, which have been estimated at 3.6 percent, and according to the Labor Department are the lowest since 1969, mean that many companies are starting to struggle with their day-to-day tasks.
Because of these difficulties, outsourcing has seen a rise in demand with as many as 300,000 positions being outsourced annually, and 87% of outsourcing decisions being attributed to cost factors and skill gaps. The only solution is to move in new directions and find ways of tapping into new skills.
The Pros and Cons of Outsourcing in our Modern World
Looking at how things are ever changing in the working world; it stands to reason that each decision should be one based on proficiency and beneficial gain. This mindset has led to the tailored outsourcing services one can enjoy when choosing this avenue.
Some of the main pros of outsourcing include:
- Varied Skill SetsDue to the very nature of outsourcing, the world opens up to your needs and you have a higher chance of finding a specially skilled individual at a lower cost.
- An Increased Work Speed With improved efficiency, delivery of products and services can be completed quickly and more conveniently, especially if the outsourcing company is available 24/7.
- Higher Returns on InvestmentsDue to the fact that outsourcing companies work on contracts, it usually leads to cheaper labor costs, thereby saving companies more money that they can transfer to their consumers. This can result in a more beneficial sales statistic that will lead to better revenue realization for your company.
- Easier Employment Dealings Because of the “middleman” aspect of outsourcing, in the event of one party not bringing their side, business owners have the option to cancel the contract or just fire that specific employee. Which means there is no need to get involved in labor disputes or be in a dilemma of whether or not to let go of someone because you have formed a bond.
- Enhanced Time Management When everything is done in-house, there is a huge possibility that some core competencies are not given as much attention as required. However, when choosing to work with outsourcing services, you can rest assured that your work is being handled by professionals, leaving you time to concentrate on other matters
On the other hand, some outsourcing cons include:
- Less ControlMany business owners and managers can struggle with delegating tasks that ultimately fall on their own shoulders, and when choosing to outsource that is exactly what you are doing.
- Concerns on Privacy And Intellectual Property (IP)Another pressing concern for many business owners is the integrity of their privacy and data security, and if the right outsourcing specialist is not chosen there can be a risk of data theft.
- Quality and Time Concerns In some cases, what a company promises and what they deliver can be two different things, and when choosing to outsource this can be a risk when choosing too hastily.
Making Sure the Cons of Outsourcing Don’t Become a Problem
As with most things in life, just because something can pose a potential problem does not mean it has to be a challenge. It all comes down to how you handle the process of outsourcing from start to finish.
Beneficial steps one can take include:
- Doing A Little ResearchBefore deciding to outsource and signing with a company, one should always do a little research into who the company is and how they do what they do. In this event, you will have a better chance of working with a professional team that make good on their promises.
- Planning Your Project Boundaries When it comes to matters of privacy and security concerns, it’s always important to set your project boundaries beforehand, so all parties involved know where they have clearance and where they do not.
- Prepping Your Team for Outsourcing Before signing an outsourcing agreement, it is essential to ensure your entire team is on board with the idea and everyone is ready to work with outside assistance in any details involved.
The Advantages of Outsourcing then vs How Outsourcing Has Changed Today
It’s a fact that the importance of outsourcing has changed a lot over the years. In the past, the major industries that were addressed and catered to focused around the financial industry, administrative tasks, the medical industry, and legal duties.
Comparatively, in today’s working society, outsourcing has grown and shifted to include a much broader range of business and services across the board.
The more modern service concentration has shifted to include:
- Data capturing in all industries
- Image rendering and digitization services
- Employment and HR management and assistance
- Marketing and campaign planning
- Events management and staff outsourcing
- Company startups and more.
It is because of increased inclusions such as these that outsourcing has become such a fundamental part of how we do business. In our current times, there really isn’t anything you cannot outsource in one way or another.
Offshore and Nearshore Outsourcing
In addition to the services and skills offered, another big growth point in outsourcing is the difference between nearshore outsourcing and offshore outsourcing. Gone are the days where one needed to try to find a qualified professional in their backyard. Offshore outsourcing advantages mean that the world has literally become our oyster and you can find a varied array of specialists regardless of the type of work you need done. The lower costs included in outsourcing to a smaller country mean that in most cases you can even save money when choosing this option.
In comparison, nearshore outsourcing may cost a little more, but one can still benefit from the same time zones, ease of distance, and cultural and legal understandings. At the end of the day, because of the massive changes and growth in this industry, you can now benefit in numerous ways regardless of which option you choose.
Noteworthy Successes in Outsourcing
With so many benefits to be had in this industry, it’s no wonder that some of the most successful companies in the world have made outsourcing such a big part of what they do. Two great examples of this are Walmart and Amazon.
Recognized as the largest retailer in the world, and famous for it in many countries, one of the most noteworthy facts about how this mega corporation does business actually comes down to outsourcing. Contrary to popular belief, a high percentage of their warehouse staff are actually outsourced from subcontracted logistics companies and temp firms. This master plan has been one of the fundamental steps taken in not only increasing their production speed and lowering expenses but has also created job and experience opportunities for those who may have difficulties filling their resumes otherwise.
An American multinational information technology company headquartered in Armonk, IBM is no stranger to the pressures and targets of successful business. In order to better negate these challenges, they turned to outsourcing and contracting. In an effort to widen their net, IBM took it upon themselves to work with other leading companies including Vodafone, negotiating contracts to help with the virtualization of their operations, and enabling them to migrate to hybrid cloud architecture.
Changing Your Today by Outsourcing A Better Tomorrow
As amazing as all of this sounds, the benefits of outsourcing are only half of the equation. More important, is your chosen outsourcing partner. The fact remains that the pressures of the business world are very real and only increasing as time goes on. Because of this, you need to ensure that you select a partner who not only understands this but is willing and capable to help you overcome your challenges and not add to them.
At Back Office Pro, we have over a decade in outsourcing experience spanning across numerous industries and backed by highly trained and skilled professionals. We have made a customer-minded approach our motto and strive to ensure accurate and quality work in any project we take on. By choosing to work with us, we can guarantee a high-quality output each and every time coupled with proficient task completions and costs saved. If you are interested in an outsourcing future for your company, reach out to us and let our outsourcing services do the talking.
– Back Office Pro