Outsourcing has been around for quite some time now. In fact, the global outsourcing revenue of outsourcing amount to about $92.5 billion in 2019.
Moreover, more and more executives and entrepreneurs realized how important it is in expanding their business. Maybe you’re starting a business, a small one, or someone who has been thinking of doing outsourcing but is afraid to do so.
To help you, here are some questions about outsourcing you might want to ask.
Is Outsourcing Only for Big Businesses? Can Small Businesses Outsource?
No, outsourcing is not only for big businesses, and yes, even a small business can outsource. There is this wrong connotation that only big companies can access outsourcing because they have the resources to do so. However, technological advancement has changed the playing field, making it easier for small and medium-sized businesses to use this business method. Moreover, did you know that small businesses are actually the ones who have a lot to gain from outsourcing?
According to Neil Patel, the top challenges most small businesses face are the following:
- Hiring new employees
- Increasing profit
- Employee healthcare
- Growing revenue
- Cash flow
Outsourcing offers a lot of solutions that can answer all those problems. For example, outsourcing companies will be the ones in charge of hiring employees and providing healthcare. Moreover, it also has all the indirect benefits of increasing a business’ profits. Aside from streamlining processes, a business can focus more on tasks that create revenue.
Will I Lose Control of my Business?
No. In fact, it will make doing your business easier because you are delegating non-core tasks to another firm. When you outsource, you are giving yourself and the company the opportunity to grow by not investing a lot of your time and money in tasks that don’t generate money.
What Company Functions Should I Outsource?
Technically speaking, you can outsource everything now. However, the best answer is non-core tasks that take a lot of your business’ time and resources despite not helping in generating income. Many companies, for example, outsource their HR and accounting functions. Also, projects where you need to invest a lot in infrastructure or new technology.
How do I Start?
First, identify what your company needs to grow, your goals, and your objectives. Next, do your research, list down names of outsourcing firms and their expertise, and see if they can help with your business needs. After that, talk to the outsourcing company, and discuss how you can work together to reach your goals.