Managers are faced with an ever-increasing number of financial pressures, challenges and constraints in today’s organisations. Being able to delegate responsibility for at least some of the departments concerned through outsourcing is highly desirable but brings with it a number of specific issues.
When to outsource
Lots of businesses are well able to handle their internal, day-to-day activities but find that new projects, for instance, do not justify hiring more workers, and this is where taking on outside help through outsourcing makes sense.
Reasons to outsource business functions
Outsourcing allows a business to focus more on its core activities. Once a B2B contract has been signed either with the individual, the
he or she works through, or with the outsourcing firm, in-house staff can concentrate on generating money.
In cases where there is a desire for growth, resources to do this in-house may be lacking.
By decreasing expenses, a business can improve its bottom line, and a contractor may be able to do the work less expensively in comparison with in-house employees. The costs of recruiting and training employees will be eliminated, as will the logistical work surrounding benefits and taxes.
Outsourcing makes expert talent immediately available, as well as the latest technology and innovative approaches to business problems and challenges.
What to outsource
IT can be a very expensive in-house operation and is a popular first choice when considering outsourcing. The majority of businesses simply do not have the knowledge and expertise required to run an optimal IT department themselves, and in any case, it is not so much a core function as a maintenance and repair one.
An outside agency can easily administer human resource functions and employee acquisition because such organisations are highly adept at advertising, screening and reference cross-checking. It may also be a good idea to use another company to manage the benefits of employees as they’ll be on the ball with the latest employment legislation.
A marketing company will likewise be able to manage a company’s marketing functions, and moreover provide a fresh perspective unavailable to internal marketing personnel. Polished content provided by freelance writers will greatly improve all marketing literature, and activities such as website design, press releases and online marketing through social media are all possible candidates for outsourcing.
Accounts and finance can be outsourced to a specialist accounting firm or to an individual. They can handle services such as invoicing, bookkeeping, analysis, financial reporting and planning. An organisation can make substantial savings just by outsourcing its payroll service, and there are numerous financial contractors out there who will bundle all of these services into a package for even greater streamlining.
Whatever the nature of a company’s needs and constraints, outsourcing certain key functions and services can generate a range of benefits. Planning and dealing with certain activities in some departments and amalgamating assets consumes precious time and resources, and handing the work over to an external agency skilled in these areas often makes excellent sense.