Outsourcing companies have been popping everywhere, especially that startups are getting a popular stead in the digital age. These newly-developed companies often operate with limited resources and because the present economy is plummeting, the need to outsource is clearer than before.
The practice is basically a strategy that companies employ by hiring outsourcing companies to provide them with products and services. It’s when businesses turn to those who can produce what they need at a significantly lower cost as compared to hiring in-house staff. This helps companies avoid stalling their growth and focus more on their core competencies.
When to Hire Outsourcing Companies
Every company is different. Therefore, the time they need to outsource also differs. There’s a misconception that outsourcing companies are only reserved for big companies. But this isn’t the case today as technology is now allowing small companies to do the same.
There are some businesses that have in-house staff to do their daily undertakings, but they are also seeking the help of outside talents that can take on temporary projects. Small businesses mostly outsource because they are unable to get into their daily tasks while planning for their future growth. When companies realise that there’s not much time left to do all these, outsourcing companies is becoming a necessity.
For startups, the best thing to do is to outsource services from the start. This starts with outsourcing one person, and from there they can propagate it into a team.
What Tasks to Give to Outsourcing Companies
Don’t just outsource for the sake of outsourcing tasks that you don’t want to do. Sure, almost any task can be outsourced today, but it does not mean that you have to hand everything over to other people.
To know which tasks to give to outsourcing companies, you should identify your strengths and weaknesses first. This can help you determine your core competencies. Much of these core competencies should align to your goals and be spent greatly on Research and Development for your products or services.
Here are some types of tasks to outsource:
• Highly-Skilled Industry Professional– For example, if you are planning on having someone who can help you with allocating your resources such as a CFO, you can outsource a CFO-level expert who comes in monthly to give you financial analysis and advice. Through this, you can avoid paying for CFO salary and benefits.
• Highly Repetitive Tasks– bookkeeping, accounting, data entry and inventory are some of the highly-repetitive and mundane tasks you can outsource.
• Specialised Knowledge– jobs that fall under this category are mostly IT jobs that require specialised technical knowledge and skills from professionals.
Getting the Benefits of Outsourcing Companies
Outsourcing the tasks mentioned above lets you gather together highly-skilled individuals into a team without spending lots of money on in-house employees. You don’t have to be bombarded with the sight and amount of workload you see every day in your office when you outsource. Seeing piles of tasks waiting to be done only distracts your attention.
Farming out the activities that you are incapable of handing is a tried and tested strategy to improve your bottom line and grow your business rapidly. To successfully deploy this into your business, you have to clearly define your processes to your outsourced team first.