Seven Reasons Businesses Should Consider Outsourcing
In order to compete with larger companies, smaller businesses sometimes need to find alternative ways to provide the services their company offers. Outsourcing can be a great way for smaller businesses to provide additional services, like 24-hour telephone customer service, and stay within their budget. Here are seven benefits that outsourcing can provide companies of all sizes.
What Is Outsourcing?
Outsourcing is defined as hiring a third-party company to perform tasks, operations, or jobs ordinarily done by company employees. While outsourcing is often seen in a negative light by many people, it can help smaller businesses provide services or get tasks done that will allow them to compete with larger companies. In addition, it can help seasonal businesses find the temporary help they need without going through the process of hiring personnel for only a short period of time.
Outsourcing Keeps Focus on Primary Responsibilities
As your business expands, outsourcing some of the newer services that your company provides can help your employees focus on their primary responsibilities. While expansion is great and is a good sign that your company is succeeding, rapid expansion can be detrimental as well because it can be costly. Your resources can become strained, whether it is your personnel or your finances, due to the increased volume of business.
You may need to provide new services, such as telephone customer service, which can distract your employees from their main responsibilities. Instead of putting more responsibilities on your employees’ shoulders and keeping them from performing their primary functions for your company, you can outsource the telephone, or other, services you need.
Outsourcing Saves Money
A small business that may need to have telephone customer service may not be able to afford to employ people to answer their phones to take orders or screen their calls. This not only requires personnel, but the necessary equipment to answer calls from your customers. Instead of foregoing this service or getting a loan to add this service to your business, you can outsource telephone answering services for your company.
An answering service may be needed to screen calls, and to answer the phones when employees are out of the office or after hours if you have a business that provides emergency services, such as HVAC repair or a plumbing business. Instead of spending resources that you may not have, outsourcing can help lower the costs of having this service for your business.
Outsourcing Can Provide Efficiency
When you hire an outsourcing company to provide new services for your business, they are prepared to provide those services right away. They already have trained staff, and, once they have been provided with information about your company and its needs, they will be able to better provide your customers with their services. There are many services that a smaller business may need as it expands, such as telephone customer service, billing services, or information technology services. By being able to get started right away, the outsourcing company can help increase your company’s productivity and fulfil your customers’ needs faster, which can make your company more profitable.
Outsourcing Can Provide Control
Along with providing new services your company may need, outsourcing can be used to take over services that are no longer affordable. A poorly managed department can easily have cost overruns that your company cannot keep up with, but the problem can be easily corrected by hiring a company to take over the department’s responsibilities. Along with saving your business money, an outsourcing company can provide better, more efficient managers that will help benefit your company.
Outsourcing Provides Staff Flexibility
Outsourcing can also be utilised if your company doesn’t need a department or personnel full-time. Instead of having people on the payroll part-time or with little to do, you can hire an outsourcing company on an as needed basis to provide the help your business needs. For instance, if you have a seasonal business, you may need more customer service personnel to take orders, but when the season is over, you can have the answering service you hired reduce the number of operators working on your account.
If your company is in a business that experiences high employee turnover, outsourcing necessary services will mean fewer disruptions to your business. Losing personnel can sometimes delay customer orders or cost your company business because there isn’t anyone available to perform certain tasks, such as answering the telephones. Hiring an outsourcing company means there is always someone available to answer calls, take orders, or provide other necessary services.
Outsourcing Can Provide 24-Hour Service
If you have a small business, or even a one-person company, it can be difficult to answer calls after hours from customers who may have immediate needs. Instead of using your personal mobile phone to accept business calls after hours, you can hire an answering service to answer calls and forward important ones to your phone. In businesses that deal with customer emergencies, such as plumbers, locksmiths, physicians, and other similar businesses, this will allow you to get calls from only those who need immediate help.
Outsourcing Can Provide Needed Skills
If your company is offered a project that requires skills your employees do not have, instead of turning down the project, you can hire an outsourcing company who have people with the skill sets you need. Instead of hiring people directly who may only be needed for one project, most outsourcing companies provide services on an as-needed basis. This allows you to accept more diverse projects, which could help expand your business and find new customers.
There are several services that are commonly outsourced by businesses because they don’t need full-time personnel on their payroll, or they may only need temporary help. It costs less to hire an outsourcing company to handle these responsibilities than it does to advertise, interview, and then hire personnel for your business. In addition, the staff at an outsourcing company is already trained in these areas and can help with your company’s immediate needs.