Outsourcing: a powerful tool for growing businesses
Growing a business is a challenge. It requires a delicate balance between pursuing aggressive growth strategies and hiring quality talent, and controlling costs and managing cash flow.
Outsourcing offers a variety of benefits to start-ups and other growing businesses, including the following.
1) Enhanced focus and quality: Outsourcing enables business owners and executives to focus on core business activities and
competencies, such as strategic planning,
product development, sales, marketing, and customer relations, without being distracted by administrative details. What’s more, that focus can be greatly enhanced given the access to highly skilled, innovative people that outsourcing can provide. Trying to support such focus or develop that talent in-house within an acceptable timeline can be cost-prohibitive, if not practically impossible.
2) Reduced costs and capital investments: Often, outside service providers are able to perform tasks more cost efficiently and faster than their clients. And they relieve businesses of the need to invest in the necessary technology, equipment or human resources that might otherwise prove to be barriers to entry for a particular business or market.
Consider this: there are more than 4,600 videos on YouTube about how to fix a leaky faucet. With those and the proper tools, you might just be able to take care of it yourself – if you can afford the required time, tools and patience. Barring that, it’s probably much easier and a lot faster to hire a plumber. (See? You’ve already been outsourcing services for years and never realized it.)
3) Peace of mind: In circumstances where rapid growth is required, companies can face challenges in hiring trustworthy and reliable staff. Outsourcing addresses this, provided you do your homework. It’s important to invest in a comprehensive background check on any outsourcing firm you hire, especially if the firm is based in another country. A thorough inquiry should uncover financial information, litigation history and information about the organization’s reputation in the local and global business communities. An investigative firm with international intelligence contacts can help you obtain pertinent data swiftly and in accordance with local information and privacy laws.
Is outsourcing right for you?
Whether your business would benefit from outsourcing certain functions to a third party depends on the nature of your business. The key is to examine all of your activities to determine which serve core business purposes and which are ancillary to those purposes. Support functions may benefit from outsourcing if someone else can perform them faster, better and cheaper.
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