Outsourcing: Helping to build better businesses
Outsourcing is the latest buzzword these days, as more and more cost and quality conscious businesses all over the world are turning to outsourcing partners for outsourcing their non-core business processes. So, what exactly is outsourcing and what are the benefits of having an outsourcing partner do your work for you?
What is outsourcing?
Outsourcing — the practice of using outside firms to handle work normally performed within a company — is a familiar concept to many entrepreneurs. Small companies routinely outsource their payroll processing, accounting, distribution, and many other important functions — often because they have no other choice. Many large companies turn to outsourcing to cut costs. In response, entire industries have evolved to serve companies’ outsourcing needs.
Benefits of outsourcing your business processes
Few businesses thoroughly understand the benefits of outsourcing. It’s true that outsourcing can save money, but that’s not the only (or even the most important) reason to do it. Wise outsourcing, however, can provide a number of long-term benefits:
Cost control. The most obvious and visible benefit relates to the cost savings that outsourcing brings about. You can get your job done at a lower cost and at better quality as well. There is a cost savings of around 60% by outsourcing your work. Plus, the quality and experience of the service provider is generally high, thereby ensuring that low-cost does not mean low-quality.
Focus on your core business. Every business has limited resources, and every manager has limited time and attention. Outsourcing can help your business to shift its focus from peripheral activities toward work that serves the customer, and it can help managers set their priorities more clearly.
Increase efficiency. Companies that do everything themselves have much higher research, development, marketing and finance expenses, all of which must be passed on to customers. They also bring years of experience in business practices and expertise in delivering complex outsourcing projects. Thus, they can do the job better with their knowledge and understanding of the issues. This leads to an increase in your productivity and efficiency in the process thereby contributing to the bottom-line of your company.
Reduce staff costs. You no longer need to invest in recruiting and training expensive resources for your business. Providers like CloudForce take care of the resourcing needs with their pool of highly skilled resources. The resources employed by CloudForce are well educated in the respective business areas and are experienced in handling the business needs of companies that want to outsource. Further, CloudForce employs world class business practices perfected over the years by catering to customers around the globe.
Start new projects quickly. A good outsourcing firm has the resources to start a project right away. Handling the same project in-house might involve taking weeks or months to hire the right people, train them, and provide the support they need. And if a project requires major capital investments (such as building a series of distribution centres), the startup process can be even more difficult.
Level the playing field. Most small businesses simply can’t afford to match the in-house support services that larger companies maintain. Outsourcing can help small firms act “big” by giving them access to the same economies of scale, efficiency, and expertise that large companies enjoy.
Reduce risk. Every business investment carries a certain amount of risk. Markets, competition, government regulations, financial conditions, and technologies all change very quickly. Outsourcing providers assume and manage this risk for you, and they generally are much better at deciding how to avoid risk in their areas of expertise.
Contact us today to find out more about our outsourcing services for your business processes.
