A lot of companies are increasingly seeking to outsource these days not only because it’s a rising trend but because it is an astute business move as well. It’s also fair to say that, even for the next couple of decades, this method of business operation will continue to be a game-changer for a lot of businesses.
Now, most people see outsourcing as a somehow shady term and style for a couple of different reasons. As valid as some of these reasons may be, the fact remains that it is one of the best ways to provide better service for your clients as a business owner.
In this fast-evolving world of business, you have no other choice than to think outside the box when it comes to the development of your company. Regardless of whatever outsourcing risks you may be trying to avoid, it remains a no-brainer that global outsourcing is a path no company can ignore anymore.
Why do companies choose to outsource work, and what are the pros and cons of an in-house development vs. outsourcing strategy in business? We’ve put together a couple of facts here for both SMEs and large-scale business owners to digest about this, especially for our readers across the US.
What Does It Mean To Outsource And Who Needs It?
According to Wikipedia, outsourcing is a contract in which one business employs another to handle a planned or ongoing operation that might be done internally. Sometimes, outsourcing also entails the movement of assets and workers from one organization to another.
In the words of Investopedia, the process of engaging a third party to execute services that would normally have been handled in-house by the company’s workers is known as outsourcing. Now, having established this fact, the question remains: Who needs to outsource?
As a business owner, when you need to achieve a lot more, in terms of productivity, without necessarily adding to your overhead costs, outsourcing is your best option. You already know what your current team can put forward, in terms of productivity, but adding more employees to your rooster isn’t a smart business move.
This is because, when carried out meticulously, outsourcing can not only help you get the desired results but also save you a ton of overhead costs in the process as well.
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Why Is There a Need For Global Outsourcing?
There is a need for global outsourcing in the business world presently because it avails you of access to the best of global talents. From all indications, there is a limitless abundance of resourceful talents across the globe that can be engaged by firms that embrace outsourcing.
Global outsourcing is like building a championship team without borders, and Growth Hackers knows exactly how to assemble the right experts from around the world to win. When considering the need for global outsourcing, the following advantages it offers cannot be over-emphasized:
- Since it isn’t dependent on any location or even specific to any particular country, global outsourcing also greatly reduces risks for your clients. This is because there is a lot more flexibility and freedom in the mode of operations and how decisions are made in this style of business operations.
- A company that globally outsources its projects stands to benefit from having more market share in its industry across the globe. The company’s market share is greatly boosted as it links up with several partners and companies in diverse geographical zones across the globe and executes its various projects.
- For software developers, one of the benefits of outsourcing software development projects, especially globally, is the potential of your final product having a much greater level of expert touch to it.
This is an option that’s worth considering, especially if your in-house team does not have the same level of skill and expertise available on the global market. Hiring and inducting WordPress SEO experts or developers can cost a small fortune, but with outsourcing, you get all the expertise and great products without boring a hole into your pocket.
At the end of the day, a business that engages in global outsourcing not only scales through and breaks even locally but also grows tremendously with time on an international scale as well. Now, which is the best example of outsourcing? And, is this all there is to it about outsourcing, either locally or globally, and its benefits?
Well, there are quite a few other reasons why companies may choose to outsource their projects though, and here are some of them below.
Generation of more profits
The sole purpose of creating a business, besides proffering solutions to people’s problems, is sure to make good profits. One way for a company to maximize its profit is by cutting down its overhead costs, and this is an awesome advantage that outsourcing gives.
There are many reasons to do lead generation outsourcing or other types of outsourcing. Outsourcing helps you to increase your profitability because it helps you to get a lot more work done by finding and collaborating with several other experts across the globe.
Assured company growth
One of the most noticeable strong features of a company that engages in outsourcing is the speed at which it grows. This can be attributed to the way it acquires premium talents for its projects through this process. Growth Hackers has helped numerous companies accelerate growth by tapping into top-tier outsourced talent that consistently delivers exceptional results.
In the virtually cut-throat business world of today, you must be able to offer better service to your clients and also deliver on that promise every single time. Outsourcing not only helps you skip the hiring and induction process of building a team in-house but also helps you get the best talents on your projects always as well.
A ready pool of talents to pick from globally
Another great advantage that outsourcing offers to any business is near-limitless access to global talents always.
Outsourcing projects to the best talents globally can help your business stand out and also boost your profitability in the long run. Your business would not only be known for excellent service delivery but for the expertise and efficiency with which your projects are executed as well.
Access to the use of specialized software on projects
Outsourcing companies also get to enjoy an extra advantage of getting certified experts and firms to handle their projects with their specialized software.
The outsourcing company is not necessarily bound to provide the required training, infrastructure, or tools for the project to be completed. Hence, they get to enjoy most of these perks at no extra costs whenever they outsource to other companies and professionals that already operate with them.
Reduced money and time costs
There are several benefits to work with an outsourced sales and marketing company but time and cost reduction are the main ones. Outsourcing helps a company to free up huge amounts of time because it greatly assists in streamlining the process of work at the firm. This in turn helps the company to be able to focus more on its prime business goals.
It also saves a great amount of money for the company as it significantly reduces the cost of recruiting, inducting, and subsequently training new in-house employees. When a client was drowning in hiring expenses and slow onboarding, Growth Hackers stepped in and streamlined their sales and marketing process, freeing their team to focus on growth and profits.
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Are There Any Outsourcing Risks To Look Out For?
To a lot of clients and even politically-inclined people, outsourcing is either associated with bad service or a potential surge in unemployment.
It doesn’t come without its attending risks as well and here are 4 common outsourcing risks to look out for when engaging in it:
1. Time Zone And Geographical Location
Contracting firms or professionals from across the world could be a problem if the obvious time and geographical location differences are not properly considered. Always work with a team, company, or people you can keep up with to avoid such problems.
2. Deadline Delays / Failure
There is also the risk of having delays or failures to meet set deadlines by contracted companies, individuals, or vendors. While some of these delays may be caused by unforeseen circumstances most times, you may also need to factor this in and not give deadlines that would put you at risk with your client.
3. Little Or No Control
Outsourcing projects to external vendors also come with the risk of you having little or no control over the work process, as opposed to having it handled by your in-house team. Always seek ways to ensure that outsourced projects are efficiently managed so that the outsourced products or services do not lose their required quality.
4. Breakdown In Communication
It is vital for you, as an outsourcing business, to maintain a clear line of communication at all times with firms, agencies, or individual professionals you work with. Important files, data, and reports must be consistently shared, and you must also look to establish a viable check-in process.
These are but a few of the risks involved in outsourcing for any business, regardless of its size. We must reiterate though, that the value and advantages of outsourcing greatly outweigh these or any other disadvantages it may have at that.
To Sum Up: Why Do Companies Choose To Outsource Work?
When you choose the right marketing agency for your business, you will leverage their experience and pool of talent. With the world going more and more virtual, the choice for outsourcing become broader every day.
Hence, this makes us believe and assert that the future of outsourcing is pretty much digital as well. This is because there is bound to be an increase in the demand for smarter, much cheaper, faster, and better services, and outsourcing providers can offer these efficiently by using digital systems.
At Growth Hackers, we help startups, small businesses and entrepreneurs succeed by designing for them online business personalized content filled with viral marketing and growth hacking techniques. If you think that a bit of extra help might be necessary to help you grow your business, contact Growth Hackers and we will start to help you from today.
