Nowadays, the global market is in desperate need for fast-paced results, meaning for businesses to have processes that are as automatic, reliable, and independent as possible by encouraging companies to outsource services. So what is outsourcing? As the word itself implies, it refers to getting another firm or individual to provide services and/or solutions that are of importance for a company but they do not belong to the core services, therefore there is no immediate need to be provided by the company itself.
What are the benefits of outsourcing?
-Businesses outsource for many reasons, time efficiency frequently described as the main one; because the company can utilise the resources and time that was going to take up doing some relevant work.
-Stress-free environment: As a result of having more time to do core services work, the amount of stress would decrease accordingly helping staff members to perform better and smoother the work environment.
-Economic benefit also tends to be among the factors that move people to outsource. Contrary to what people think, in some cases, it is cheaper as it would eliminate the cost of hiring and training staff to do a task that is not core to the business.
-Normally outsourcing providers tend to be experts on their field, ensuring reliability for clients. Some of them would go even further by charging after the service/product has been delivered and the customer is satisfied.
Example of the benefits of outsourcing
-To contextualise the advantages of outsourcing, an example would be an Educational Agency from Colombia that wishes to provide airport pick up services in New Zealand. The services are to be offered in a bundle deal to their student when searching for an overseas study option.
By considering to offer this additional service, the business management have identified a great economic benefit as it could bring more profit to the company. It would also help students to assimilate the transition from country to country better. From a customer point of view the feeling of top customer service would be amplified; even if the provider of the service is not the company itself.
Pricing would be a key differentiator as the agency would not incur into hiring additional staff on a full time or part-time basis. Instead, the cost would be directly related to the number of students that would use the service.
With this example, the benefits of outsourcing a specific service within your company can be clearly seen. Therefore, it is important to understand your business and what services need to be provided by the company and which can be outsourced.
What is the demand for outsourcing?
-There is an ongoing strong demand for outsourcing, as we live in a globalized world, where the interaction and cooperation between companies to provide a service and/or product, is crucial and almost expected.
Finding good outsourcing providers according to your tailored needs is a priority as this helps your business to be more efficient by focusing only on the essential services that are provided by your firm.
Outsourcing is getting services and/or solutions provided by an external company or individual. The benefits of outsourcing are fast-pace results, having more time free to focus on core business services, reliability, pricing and less stressful workload. The markets are tending to integrate these practices more day by day, so what is it stopping your company from outsourcing?