Outsourcing is the process of extending a service contract to a third party i.e. it is the process of handing over control of a particular work domain to a separate company, organization, or a set of individuals. It is the current buzzword in the niche of worldwide technology. It is often undertaken by companies and businesses around the globe so as to benefit from lower labor expenses, significantly enhanced service quality, and meeting project deadlines.
Sometimes, when the company to which the control has been handed over rests in a separate country, outsourcing transforms into offshore outsourcing aka ‘offshoring’.
Let us take a quick sneak peek in to the world of outsourcing and why it is gaining popularity by the second:
This is perhaps the most important benefit of outsourcing.
A high ROI [Return on Investment] is something that every business/organization owner dreams of. Well, a full proof outsourcing system will take you one step closer to realizing that dream. Value for money is what you’ll get, as it significantly improves revenue realization.
Every individual in your current staff serves a specific purpose. That’s what they are there for at the end of the day, isn’t it? But what if you have a 2 month project which requires a special skill set that nobody in your office has? It would be preposterous to hire an annual employee who can just sit back and enjoy your money for the other 10 non working months.
This is where outsourcing enters the fray. You can serve your clientele’s seasonal temporary needs by bringing in additional resources whenever they’re needed. And as soon as the project’s successfully over, you can bid them farewell.
Makes you money efficient
Is the size of your company holding your scalability back? Is the amount of cash in-flow less than the overall cash out-flow? Well, in that case outsourcing is tailor-made to suit your purpose. It drastically reduces labor costs and stabilizes the overall organizational economy. Outsourcing helps to bring forth a sense of cost efficiency by allowing you to allocate your resources in an optimized manner.
Widening your Knowledge Base
The intriguing thing about knowledge is that, you can never have too much of it. More the number of people in your staff, better brainstorming practices would be exercised, which would ultimately lead to more creative results. You can significantly expand your current knowledge base by outsourcing. When it comes to ideas and innovation – the more, the merrier!
Shift your Focus to Core Activities
When you outsource a particular work domain of your organization to a third party, this allows you to shift your resources and time to other important facets of your business. It frees up your management time, and you can now cater to ventures and areas that you might’ve disregarded in the past.
Better Organizational Continuity
Periodical periods of employee recruiting could prove detrimental to your company’s stability and consistency. Furthermore, it would bring a sense of insecurity in your current workforce. Outsourcing will gift you that business continuity you always asked for. It simultaneously mitigates the risk brought upon by a below par operational level.
- Better operational stranglehold
- Aids in meeting stringent deadlines
- Drastically reduces overhead
- Improves the overall quality of the internal staff