Want to outsource some of your business functions but are afraid that it will affect the quality of the work? Today, we will explain to you why you should never fear outsourcing.
What exactly is outsourcing some people may ask? Well, in definition, it is the practice of using third-party agencies to do the work that may have been done within the company before. It can be divided into three types of outsourcing – near-shore outsourcing, onshore outsourcing, and offshore outsourcing.
Fear of outsourcing exists because the company relinquishes direct control it has over the task by outsourcing. This uncertainty in the minds of the business owners and this fear is not unfounded. However, the benefits of outsourcing are too many to ignore. The solution to these fears is finding a reliable outsourcing vendor and making service levels agreements. These agreements include the level of service expected, the metrics to be used to measure this level, and the course of action if the levels are not achieved.
The reasons a company may outsource are many, some of them are:
Lets your business focus on core competencies
Some businesses may want to focus on their core business competencies as they may not have the knowledge and infrastructure to perform that business function in-house. Sometimes they may not wish to hire new staff especially for project-based jobs. Functions such as customer service, software development, and web development and design are amongst services that are often outsourced.
Lower labor costs
Outsourcing gives you access to experts that are highly competent at lower labor costs.
Small business owners that have limited staff and infrastructure can outsource as well,as they can also outsource customer service, website management, and accounting to focus on R&D and also reduce costs that may be associated with hiring a full-time employee.
When bigger companies choose to outsource, however, their outsourcing initiatives come with a different goal to accomplish. A company wanting to gain a time zone-based advantage can utilise offshore outsourcing for customer services and can have 24-hour customer support.
What you outsource depends on your key business activity. What you decide to outsource can be someone’s key competency and vice versa.
Outsourcing may have a bad reputation because people believe that the work is done by people who do not have a direct stake in the organisation and at a low cost. However, that is not the case, companies that provide outsourcing services are experts with their reputation to protect and there are many other safeguards.
So you should not hesitate to give outsourcing a chance and prepare to grow your business in Sydney with the time and resources that you have freed up doing so.