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Why Should Your Company Outsource? 2022

What Is Outsourcing?

Outsourcing can help businesses reduce labour costs significantly. 

When a company uses outsourcing, it engages the help of outside expertise not affiliated with the company to complete certain tasks. The outside organisation typically benefits from economies of scale, selling their expert services to many, enabling them to provide a competitive service. This ultimately enables the outsourcing company to buy in expert support and reduce its labour costs.

When to outsource

Are your employees performing multiple roles?

It’s not uncommon in smaller businesses for people to ‘don more than one hat’ to keep the ball rolling.  However, more efficient organisations outsource highly skilled functions to experts, and focus their employees on their core services.

It is highly unlikely that you need to be convinced that keeping customers happy is paramount in all business. Yet, to reinforce this further, let us give you a quick stat, “91% of unhappy customers will not willingly do business with you again.” While there are several causes for customer dissatisfaction, one of the most common issue is bad service that can crop up when your team is overtaxed.

Outsourcing can give your ‘home’ team the bandwidth to focus on the core activities that puts your customers first.  It could actually be a sensible strategy when growing as well, avoiding the commitment to increased overhead during a growth phase.

Minimal supervision

When you hire an outsourcing organisation to work on your business requirements, it’s a given that they are going to take care of everything from the ‘get go’.  

Their own business stands or fails on the delivery of their services, so you can be reassured that the service is tried, trusted and reliable.

Choosing a responsible organisation with knowledge, experience and track record is a must-have so that you can be confident in your outsourcing decision.  In turn they contribute their knowledge and expertise to your own organisation, which might not be able to afford to employ staff with that level of knowledge, competency or breadth.

This will give you more time to focus on your core business functionalities.

Paying someone else to do your work can save you money - yes it's true!

Take a hard look at how much billable time you lose over tasks that you could pay someone else to do.  Could you be more efficient?  Remember, people buy your products or services, instead of doing it themselves because they aren’t the experts – you are.  But where as your expertise may lie in your specific business core product or service, why would you expect to be an expert in all other areas of running your business?

Companies outsource as per their needs and financial capabilities. While some companies delegate two-three functions only, some are comfortable with having a lean business model and utilising the outsourcing model to their advantage.  

However, the ultimate goal is always the same – to provide flex,  bring in expertise and to lower operational costs.

The overall trends of the past decade suggest that outsourcing is a highly popular route for all businesses.  And increasingly so, with rapid growth, economic downturn and with the need to be more operationally flexible. 

If you would like to consider the outsourcing model for your own business, and you recognise the above needs in your own organisation, please give us a call.

You can’t keep up with the demand

When business is booming and projects are stacking up, the pressure to get orders out quickly and efficiently is fierce.  Therefore, the first question to ask leading up to any busy period is: Are we properly staffed to keep up with the demand?

If not, do we have enough time and funds to hire in-house experts?   Chances are low for both these cases to be true at one point. 

Choosing a right outsourcing partner should fix this.

What have you got to lose?

To see how Chapman Consulting can assist you in defining your company’s goals, please contact us using the link below.

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