There is so much thought, effort and planning that goes into a business. It is the culmination of a wide range of business processes that make a business work, and if even one of them is not performing at its peak, all of the others will suffer for it. Businesses large and small outsource business processes from IT to HR to accounting. Outsourcing allows a business to concentrate on their core speciality and maximise efficiency.
The Advantages of Outsourcing
There are many benefits associated with outsourcing business processes. First and foremost, a business is given more flexibility, primarily in terms of cost. When you outsource, you only have to pay for the services that you actually use, meaning that you save money by not paying for things like downtime. In addition, you are also able to focus more on the major goals of your business without having to deal with things like HR. Having your human resources outsourced means that your time and energy is freed up to deal with other things instead of having to manage yet another department. Putting that responsibility in someone else’s hands will work wonders on your efficiency as well your bottom line.
The Downsides of Outsourcing
Just like outsourcing gives you flexibility in terms of cost, it also reduces flexibility in terms of control. When you don’t make the rules for your accounting or human resources department, those firms could handle certain matters in a way which you don’t necessarily agree with. This is especially risky when it comes to customer service processes like call centres. It is important to keep in mind that a firm which handles outsourcing is a business just like yours and will want to keep you as a client, so these risks are small… but they are still there. You also have to watch out for changing policies or additional fees that could come out of nowhere and surprise you. In addition, there is a risk when outsourcing processes like IT or security- you are trusting someone else with your livelihood, after all.
Choosing Where to Outsource
You have options when it comes to outsourcing. You can either outsource to a local firm or larger company or even go overseas. India is the most popular country in the world when it comes to outsourcing, as they have the workforce necessary and they typically charge lower fees than domestic outsourcing agencies. However, offshore outsourcing takes money out of the local economy and reduces the number of jobs available to local workers. In addition, offshore outsourcing things like customer service processes (again, such as call centres) may frustrate local customers because of various language barriers. With that being said, there are definitely advantages to outsourcing other processes overseas. As mentioned before, you will definitely save money that way. The
The Verdict
When it comes to outsourcing business processes, the benefits certainly outweigh the negatives. Outsourcing is a practical and effective method of getting things done for small businesses and multi-national corporations alike, and you should definitely look into it to save money and have the time and energy to focus on other more important aspects of your businesses. There is a reason that outsourcing is so popular and will remain to be popular for as long as business exists- it just makes sense.
