Outsourcing as an industry has been around for quite some time, as companies have always looked for cost-efficient ways to manage certain business processes off-site. Among the most common services outsourced are customer support, accounting, recruitment, manufacturing, and many more technical roles that can be a time and resource obstacle for growing companies.
By taking these functions to a third-party service provider, you can focus on managing and optimizing the core areas of your business. In addition to enhancing your concentration on internal specialization, outsourcing can also be a great source of overhead reduction for your company. Typically, outsourcing partners will provide offsite services at a lower cost than if you were to build an internal team due to the varying economic benefits that come with an offshore workforce.
Because of the benefits of outsourcing, many companies are finding that it’s an attractive option that allows their businesses to grow. In fact, 37% of small businesses currently outsource a business process. Among this number, 24% choose to outsource primarily to increase efficiency, while 18% are looking to receive assistance from an expert.
Whatever your business goal is, you need to be able to find the right partner, whether your requirements are for customer service outsourcing, IT support outsourcing, or recruitment process outsourcing. You’ll want a company that can provide you with quality services in a cost-effective manner. This way, the results have a greater overall value on your business. In this infographic, we compiled all the latest outsourcing data and statistics to help you make informed decisions about the strategies that you’ll employ.
Companies outsource business processes for a range of far-reaching benefits. But the main benefit of outsourcing is its cost-efficiency.
When you outsource a certain process, your labor costs get slashed because of several factors. One of which can be the fact that third-party contractors have a different compensation structure than your company. Providers of outsourcing services typically have lower rates compared with what you may offer to in-house employees for the same amount, type, or quality of work. Not only are you able to reduce your overhead, but you also gain significant savings since you don’t have to spend on facilities, equipment, or technology requirements.
In addition, job functions that are quite tedious and repetitive are better off handled by your outsourcing partner, so you can focus more on managing important projects, making sales, acquiring customers, and other activities that have a direct impact on the growth of your business.
Being a small business, you may be dealing with limited resources, whether it pertains to being understaffed or simply not having the technology to get things done. Outsourcing takes care of these problems by providing tailor-made solutions to keep your operations running smoothly.
READ THIS RELATED ARTICLE: 4 Outsourcing Myths that are Hurting Your Business Potential
Outsourcing across industries is common, but businesses tend to outsource a lot of their IT and digital marketing needs due to current market conditions, economies of scale, and geographical labor differentials. Unless your company specializes in these areas, you might as well take these processes to an outsourced team that is built specifically for that reason. Highly technical tasks, such as accounting, are also commonly outsourced to a third-party organization that has expert knowledge in accounting principles as well as access to a larger talent pool. These tasks take years to master, so if fast-tracking your progress in these areas is what you need to make your business more efficient, you probably should consider outsourcing them.
The outsourcing industry continues to evolve to make its services more attuned to the present state as well as the future needs of businesses. Here are some of the major trends in outsourcing that you should get to know so that you can determine how or where they may be valuable for your business:
The use of artificial intelligence (AI) and other advanced technologies to automate processes is on the rise. According to experts, 40% of jobs in the US may be automated by the 2030s.
It’s understandable why this may raise fears about the human workforce being out of jobs when that time comes, but there’s more to this than meets the eye, in the context of outsourcing. Your business process outsourcing (BPO) company has to maintain the balance between delegating menial tasks to computer bots and placing the more nonrepeatable roles in the hands of humans. This will ensure that workloads are managed more efficiently while keeping that personal touch in customer interactions.
The times we’re living in call for businesses to build their online presence, including social media channels where more and more people are spending their time. With Facebook alone having an active monthly user base of 2.32 billion (and growing), there’s an opportunity for you to use this platform to reach your customers and prospects in a more engaging, customer-centric way. Companies that provide outsourcing services have expert knowledge in using social media tools and features to help you become a business that listens to your customers’ wants and needs.
Digital technologies are making it possible for businesses to capture or generate tons of data from customers. Even if you’re a small business, you’ll need similar technologies to store and back up your customer files, which can be provided to you by your IT outsourcing partner. With cloud computing, you can rent your provider’s IT infrastructure on a pay-per-usage basis to accommodate your server, storage, or networking needs without having to invest large sums of money in developing and owning the technology in-house.
Today’s brand of outsourcing considers your unique business needs, which is a far cry from the one-size-fits-all approach that used to be the norm in the industry. A good service provider offers customized solutions to help you overcome challenges that are specific to your business or industry, while still allowing you to gain cost savings and operational efficiency.
READ THIS RELATED ARTICLE: Outsourcing vs. In-House Recruitment: Which is Better?
To provide the best services possible, outsourced teams are expected to upgrade their skill sets through intensive training. For example, social media support staff are expected to possess knowledge and experience not only in customer service but also in social media marketing tools, data analysis, and perhaps social media content development.
Globally speaking, the outsourcing market is very competitive. Every year, there’s a change in country-specific rankings. While every nation that specializes in outsourcing is trying to gain the top spot as a prime outsourcing destination, there are a few perennial powerhouses that should always be considered.
Several factors influence this ranking, including financial attractiveness, availability of talent, and business environment. The Philippines has been a strong and steady player in these areas, passing the requirements with flying colors for well over a decade.
READ THIS RELATED ARTICLE: Outsourcing Red Flags: How to Spot a Bad Business Partner
In the years to come, outsourcing is likely to grow and become even more widespread than it is now, helping businesses improve their overall performance and bottom line quickly, efficiently, and inexpensively. You, too, can enjoy these benefits with the right outsourcing partner at your side.
SuperStaff is an outsourcing services provider with expertise in working with small businesses. We have a soft spot for smaller players in the industry because we know that our growth is spurred by your growth. Contact us to uncover your company’s potential for expansion!
Please let us know how we can we can help by filling out the form, and you’ll hear back from us within 24 hours.