Outsourcing is a popular option for companies that want to expand their workforce. It is estimated that every year about 300,000 jobs are outsourced in the US. Companies prefer outsourcing as it provides flexibility, expertise and cost savings. This is especially beneficial for small businesses who do not have the resources to manage all their business tasks.
So, they outsource several processes such as IT services, human resource management and accounting. Regardless of the size of your company, outsourcing is helpful in many ways.
Read on to know more about how you can benefit from outsourcing your business processes.
Benefits of Outsourcing
Reduced labor and operational costs
Companies pay their in-house employees a fixed salary. This is regardless of the amount of work done. Gallup reports that 67% of the employees globally are disengaged. The resulting low productivity can cost the company around 18% of their annual salary.
You can eliminate these additional costs by outsourcing small but essential tasks. Since you pay only for the work done, you don’t have to worry about low productivity. The outsourcing service may bill you additionally for the service provided. But the money saved on expenses outweighs the service costs.
In Deloitte's 2020 Global Outsourcing Survey, 70% of the participants listed cost-cutting as their outsourcing objective. By managing labor and operational costs, you can channel the money into other revenue-increasing activities.
Focus on essential business functions
Your business has several core tasks that need your focus. But with back-office operations, HR, and marketing, your employees will have a lot on their plate.
Without strategic planning of core functions, your business can suffer. To avoid this, you can outsource important repetitive tasks. For example, if you have a property management company, you need to focus on selling your property. You can outsource other tasks such as data entry, client support, and CRM.
If a company has financial or labor constraints, it can consider outsourcing. This frees up the company's resources to hire experts for core tasks.
Flexible cash flow
The problem with handling every task through internal teams is the fixed employee expenses. By outsourcing, you can convert this into a variable component. Sometimes, your business can see a dry run, while other times, the sales double up. You can scale your outsourcing accordingly and pay only for the tasks you got done.
This frees up your budget for other revenue-generating tasks such as marketing. This is especially important for small businesses, who have limited cash flow. More than one-third of small businesses currently outsource at least one service. By doing so, they are focusing on generating more revenue and increasing efficiency.
Access to expertise and technology
Outsourcing companies have trained staff to handle your business requirements. This significantly cuts down the cost of hiring and training a new employee. Moreover, outsourcing companies have years of hands-on experience in the same field. Given a task, they can suggest the best strategy and resources to get it done in a limited budget.
They also have the necessary infrastructure and software for all your requirements. These tools can be costly and are an unnecessary purchase for your company. Based on your requirements, the company can provide the right combination of expert knowledge and new technology. You can also choose from a broader range of skill sets and people who specialize in a particular area.
For example, if your company outsources ad campaigns, you do not need to invest in image editing and videography software. Accessing the right software for your ad campaign is the responsibility of the service provider.
Reliability
No matter how many internal employees you hire, there are always risks of employee turnover. This can harm the productivity and progress of your company. Through outsourcing, you can have a reliable resource base. Outsourcing companies have a large number of people handling the same tasks. Even if one of their employees is on leave or resigns, they have enough resources to complete your project on time. Instead of worrying about filling an open position in your team, you can outsource to complete projects with almost no risk of employee turnover.
What tasks can you outsource?
IT Operations
IT operations are one of the most outsourced business processes. Any company except for IT businesses will find IT operations expensive. It requires specific infrastructure and tools as well as expertise. Outsourcing your IT operations can be an excellent financial decision for your company.
Accounting and financial tasks
Managing your company's finances requires expert resources. Outsource your bookkeeping, accounting, and other financial tasks. You can also outsource payroll processing, financial analysis, and planning. A service provider can handle all these tasks as a single project. Since the financial workload is greater during tax season, you can also scale it quickly.
Marketing and lead generation
Every small business starts with marketing. It is easy to manage initially, but marketing campaigns also need to keep up as the company grows. By outsourcing, you can ensure better results from the marketing and increase lead generation and retention. Service providers have tested marketing strategies that can meet your requirements.
Human resources
Human resource teams handle everything right from hiring a new employee to managing the work teams. As your company grows, human resource tasks also increase. So, it is good to outsource human resource management to an experienced service provider. Since it involves multiple tasks such as recruitment and payroll processing, you can also hire more than one service provider for the tasks.
Outsource your back office tasks to KriyaGo
You can make the best out of outsourcing only when you hire an experienced service provider. Managing an in-house back office team is expensive. Instead, you can outsource your business processes to KriyaGo. We understand your requirements and provide you a smooth, hassle-free outsourcing experience. With our reliable team of experts, we can handle various tasks like bookkeeping and accounting.
By outsourcing to KriyaGo, you will get professional resources and software at affordable costs. We also keep your data secure and offer you more control over all the processes.
Learn more about back-office outsourcing by booking a consultation with us!
