Have you heard about outsourcing? Is this one of the best decisions these days some companies do? Why is implementing it advantageous?
Before answering that, let’s start defining what outsourcing is first. This is a business practice where a company’s operations are delegated outside the organization.
You may ask if this is worrisome because operations are leaving the company premises. Is this an alarming activity? Shouldn’t you control everything within? That’s actually an obsolete thought already. With outsourcing, everyone wins. Why is this so?
Focusing more on your core competencies. – Each person has their own specialties. We cannot be “strong” in all areas. There are some skills we excel in and others we are simply bad at. Maybe not that bad, but not excellent either.
When you know what your weakness is, you can outsource that task to another group. You don’t have to suffer silently in doing tasks you do not excel in. Admitting your weaknesses is nothing to be ashamed of. No one’s perfect anyway. Besides, if you force you or your team – you would just end up with a mediocre result.
Through outsourcing, you can distribute the tasks without compromising quality. Through this, you also get to focus on your core competencies. You get to concentrate on your strengths and develop it more.
Improved productivity. – It also makes your organization more flexible. Being able to take on more type of responsibilities because you can rely on your outsourcing partners. The productivity is increased without overworking everyone.
In addition to that, the tasks may also have shorter turnaround times. In addition to that, more activities can be accomplished in the same amount of time.
Reduced costs. – This is one of the fears of some companies when they venture into outsourcing. Actually, those fears are unfounded. In fact, some companies even choose to outsource for this very reason – to actually reduce costs!
Hiring costs money. From advertising job openings, the hiring process, getting them onboard, training, and so on. Let’s not even start with infrastructure and utility costs. If you’re working with a more sizable team, you need space and resources for them to work on. That’s a lot of costs involved.
Same goes for labor. If your projects differ from time to time, you have probably hired temporary employees. They are not cheap and sometimes you still have to train them. You may not have noticed it, but the accumulated cost for that is expensive.
Outsourcing is less costly in the long run because you can choose trained people and the hiring is no longer your burden.