When there’s lot of work to be done, more hands help get the job done faster and more efficiently. This is also true of operations for your small business. There are a lot of moving parts when it comes to handling every aspect of your operations. From tax preparation to sales, it takes a lot to keep your company going, and outsourcing certain services may be the right move. Here are a few things you should know about.
What is Outsourcing?
Outsourcing is when one business entity contracts with another to provide services that could be accomplished internally. The term is portmanteau of the words “outside” and “resourcing” and shouldn’t be confused with “offshoring” (when a business process is moved to another country). An example of outsourcing is an engineering firm using an outside provider to take care of printing and duplicating large-scale construction plans. The reprographics firm has the equipment and staff to handle orders, freeing up the engineering firm to create and develop designs instead of printing thousands of sheets.
What are the Benefits of Outsourcing?
Some of the common benefits of outsourcing include:
- Cutting expenses. You can save that money and invest it in growing your organization.
- Improving efficiency. Doing everything in-house takes time and costs that you may have to pass on to your clientele.
- Focusing human resources. Instead of hiring IT pros, you can consult a provider for IT Outsourcing Boston, and hire staff to fulfill the essential roles in your firm.
- Concentrating on your core business. You can divert more of your energy to what matters the most.
- Managing risk better. Imagine having to understand every detail of tax law to keep your company compliant versus having a trained accountant help you take care of your tax obligations.
A well-developed outsourcing strategy can be a real boon to your company.
What Types of Services are Commonly Outsourced?
Services that require special types of knowledge or expertise may be great areas for you to consider outsourcing. In the engineering firm example, that firm would be better served by focusing its energy on hiring experienced project managers, engineers, drafting technicians and other roles that are crucial to creating and delivering work products. That firm could reach out to a company like IUVO tech to handle their IT needs. Other services like accounting, bookkeeping, marketing, and website creation and content management may be better handled by outside companies.
When it comes to running a small business, your time, money and energy are limited resources. Outsourcing parts of your operations helps you focus on what matters. It helps you save money, improve your work product and focus on growth.
There are going to be some disadvantages but business process outsourcing and its advantages need to be carefully analysed in order to determine which services businesses can outsource effectively.
The same report considers what the economic and other advantages of business process outsourcing are so that operations can be made more efficient and productive.
Document translations –
Document translation services are very common for business process outsourcing, generally required for import and export in the logistics supply chain, for instruction manuals and even for invoices and legal contracts. Document translation services will also be necessary when dealing with outsourcing to foreign-based employees as company documents should be translated into their native languages to ensure a complete understanding of the job requirements and responsibilities.
Legal Process Outsourcing –
Legal process outsourcing is actually very common, most notably for small business owners who do not have the capacity or the budget to hire full legal teams as internal personnel. Legal process outsourcing is important both for compliance and any litigation as may result from normal business operations or extenuating circumstances.
Data Entry Outsourcing –
Out of all the services that the almighty power of the Internet allows us to outsource today, data entry is the most prominent of the lot. Many who choose to outsource data entry services, do so to find relief from the overwhelming nature of crunching a butt load of data regularly. Outsourcing is a great way to find a reliable third-party firm to take care of your daily data operations while a businessman or woman pay much needed heed to other core areas of their organization. Data entry can be tedious and expensive in the long run. Outsourcing works as an antidote to both of these issues.
Customer Services –
Customer Service is very commonly outsourced with existing, larger call centers being the most common form of customer service process outsourcing. This is generally acceptable as a means to allow the customer to remain in active communication with the business 24 hours a day, seven days a week.
Marketing Process Outsourcing –
Marketing firms can charge big money, but only because they produce very profitable returns. Marketing firms are readily available to handle local, domestic and even international marketing campaigns.
Digital Marketing Outsourcing –
Digital marketing is a bit different than traditional marketing only in terms of the media used for marketing campaigns. Digital marketing campaigns tend to be substantially more diverse in nature, and to focus on social media marketing, video marketing, website design and SEO practices and a host of other online marketing considerations. Collectively, the concept behind digital marketing campaigns is to increase the visibility of the products or services and to put them out to a precisely targeted audience in need of those products and services.
Accounting Process Outsourcing –
Third party accounting service providers are another very common practice in terms of business process outsourcing. Both accounts payable and accounts receivable are highly specialized positions and require highly trained personnel. If the volumes of sales and the number of invoices are not sufficient to meet the needs of a full time employee, these services can easily be outsourced to accounting firms. There is also the added benefit of having trained professionals to handle all of the taxes, regardless of whether the taxes need to be filed quarterly or annually.
Business Process Outsourcing Management and Administration –
It is ideal to have someone in house who can successfully serve as the administrative arm for all of the business processes that have been outsourced. There may also be instances where the business is so well diversified that it is beneficial to hire a professional BPO management firm. As is always the case, the individual needs of the company should be considered not only for the potential dangers, but also for the business process outsourcing and its advantages.