As a business owner, you might have heard about the importance of outsourcing. But, are you still skeptical about whether or not it is the right move for your business? We understand your dilemma and have got you covered. We will try to answer your doubts in this article and lay bare the facts about outsourcing.
But,
before getting into outsourcing and its importance, let's start with a
fundamental premise of businesses. Most businesses are cyclic. As such, periods
of gloom often follow high growth phases. Thus as a businessman, you find
yourself in a fix about whether or not to hire additional staff during the
growth phase.
Not
hiring, however, can increase the risk of skewing the work-life balance of
existing employees and ultimately falling back on the growth momentum. On the
contrary, hiring additional staff is a costly exercise. For a small business,
such an exercise can put limited resources under constraint. Besides, these
extra staff can become liabilities during the period of lulls, thereby leading
to mass retrenchments.
The
increased number of layoffs that Tech-startups are witnessing these days
indicates this trend. But, a simple middle ground can help avoid both extremes-
outsourcing. Outsourcing can help businesses ride gleefully through different
business cycles. Even some of the largest organizations outsource some of their
non-core activities.
In
order to appreciate why outsourcing is the right move for your business, we
will need to understand why other businesses outsource. What are the advantages
and value that outsourcing brings? Let's dive into it-
To power rapid growth:
Companies
often find that they need more staff during the growth phase. However, hiring
new employees is expensive. Besides recruitment costs, you need to take care of
laws, overheads, taxes, insurance, etc. Further, you need to invest in training
the employees and bringing them up to scale.
Hiring
new employees overlooking these limitations can also be a gamble, as there can
be redundancies during economic slowdowns. This means retrenching some
employees only to hire afresh during the boom phase. This constant cycle can
put undue pressure on your bottom line. Thus, the best alternative is to
outsource.
The importance
of outsourcing originates from the fact that it is designed to support
rapid growth. Outsourcing gives you access to a ready talent pool without the
burden of extra overheads. You can also size up or down as per business needs
without giving it any second thought.
Increase Productivity:
When
you outsource to India, you are leveraging time zone differences to
enhance productivity. Your outsourced team can take up the inputs from your
in-house team, do their work and give the results back when your internal team
starts their shift. This way, you get more work done in each nine hours shift-
thereby increasing productivity.
Hire Top Talents:
One
of the pros of outsourcing services is that it allows you to hire top
talents at a fraction of the cost. You often have to stretch your budget to
hire top talents in your home country. Further, you reel under the constant
threat of your bigger competitors poaching your top talents.
However,
outsourcing agencies can attract top talents to satisfy customers and remain
competitive. Further, most outsourcing organizations operate from nations with
lower cost of living. This helps them source comparable top talents at a lower
price tag.
Therefore,
outsourcing helps you hire the best domain experts while keeping your expenses
in check. This means you now have the firepower to scale your offerings and
beat your competitors.
Maintain Core-Competency:
Another
of the long list of benefits of outsourcing to India is it lets your
business maintain focus on core-competency. For instance, consider customer
service used to be your core-competency. By offering top-quality customer
service, you rapidly scaled your business.
However,
increase in business complexity and processes over time has not let you
maintain the focus on the same. But, outsourcing can help you in this aspect.
By outsourcing non-core functions, you can save the time of your in-house
staff. This lets them increase the focus on core-competency. Outsourcing can
thus help enhance your business productivity and ROI.
Increase brand loyalty:
Another
factor contributing to the growing importance of outsourcing is that it
helps maintain brand loyalty. By outsourcing non-core tasks and having an
in-house team that promptly addresses customer queries, you increase brand
loyalty. By offering awesome service, you let the customer feel valued, and
they reciprocate their trust towards your brand.
Comply With Regulations
New
regulations can become a financial burden even for large organizations.
Besides, several industries have strict privacy requirements that adds to the
compliance costs. And having poorly trained staff unaware of these regulations
can cost you big.
However,
one of the benefits of outsourcing to India is that most of them are
HIPAA compliant. This helps take off a lot of burden and protects your business
from the threat of potential lawsuits due to non-compliance.
Addressing Fears
However,
despite these advantages, businesses remain skeptical before biting the pill.
The most common fears related to outsourcing are data security and loss of
quality. However, both these fears do not reflect reality.
Modern
outsourcing firms maintain the highest quality standards in an industry of
cut-throat competition. Besides, they follow strict data security norms and
bind their employees with NDA. Virtual Employee, for example, makes their
employee work on systems protected by the strongest firewalls. Besides, they
are ISO 9001:2008 and ISO 27001:2013 certified and have offices in 6 countries
across the globe. They also offer VEs in more than 63 domains and have scripted
several success stories till date.
Concluding remarks
So, what are you waiting for? Grab the outsourcing tool with both hands, and propel your brand to unfathomable heights. Besides, several outsourcing companies offer a free look-in period, in which you can try a resource and select only when satisfied. Still, having doubts? Connect now to know more.
References
https://startuptalky.com/outsourcing-importance-for-businesses/
