Outsourcing has been around for a long time and has been the reason behind great success for a lot of businesses. Outsourcing has a number of different advantages for a business, many of which help create added downstream benefits as well. If you run a business and you haven’t considered outsourcing before, you could be costing your business more than you realise. To better understand why outsourcing is so vital for business growth, consider the below points.
Avoids unnecessary complications
Outsourcing is a fantastic way to simplify your business, especially in areas where legislation and compliance requirements regularly change. Outsourcing payroll management services is a great way to fuel business growth. Not only does your business get to capitalise on the dedicated expertise of a payroll contractor, but you can also rest easy that any new legislative requirements will be met. That kind of expertise and reassurance means you can spend more time on the revenue-generating activities in your business, rather than the back end processes.
If you are running a business where work is seasonal or cyclical in nature, then holding a large workforce of permanent staff can increase liability greatly. Rather than having to pay employees to sit around doing nothing while the work is slow, why not outsource key functions to avoid unnecessary liability? Outsourcing short term project work to a sole contractor or an agency is a great way to ensure delivery and avoid bloated staffing numbers. You may well pay slightly more for a contractor or an agency when the work is being completed, but in the slower times, that spend is returned directly back into your budget. Lowering these types of overheads and liability is a big advantage of outsourcing.
Opens new markets
Outsourcing is a great way to open your business up to new markets and opportunities previously closed. By outsourcing work or key activities to agreed suppliers, your business could be in a position to bid on or tender for work that previously wasn’t possible without outsourcing. The client isn’t concerned about how you get the work done, only that it meets their needs, is done on time and within budget. Smart outsourcing is about identifying key suppliers who can help grow your business offering to win those previously unattainable clients. Then once the work is complete, your business is considered for even more projects than before, fueling real business growth.
More meaningful investments
Equipment and systems are expensive, something most business owners are well aware of. Outsourcing is a way to lower those bulky investments that usually don’t drive business growth. Instead of investing in a system or new piece of equipment, try outsourcing the work to a business who already has that equipment. Managing the work properly will mean quality isn’t impacted and you have the opportunity to invest that capital elsewhere, in more growth-oriented areas. Greater investment into these areas will drive further growth and allow your bottom line to benefit as well. Simply identifying those businesses or potential partners in the market who have the systems or equipment you need is an easy task that can go a long way toward driving growth in your business.
Outsourcing can seem scary at first, after all, the work your business puts out into the market is easier to stand behind if you did it. But to drive real growth in your business, outsourcing should be a source of hope, not fear. Outsourcing is a great way to lower liability, capitalise on market expertise and win work otherwise closed off. If you’re tossing up whether to outsource or not, consider these advantages to outsourcing and they might drive vital growth in your business.