The battle between outsourcing and insourcing is one that has been waged for generations, although it has become even more keenly contested since the advent of technological advancement. More specifically, the development of remote communication technologies has made it possible for businesses to connect with service providers and freelancers from all around the world, allowing them to select from a pool of global talent and dramatically reduce costs. This is why outsourcing became so popular in the wake of the great recession, as businesses clamored to save money and reduce operating costs.
As the economy has improved, however, insourcing has become increasingly popular as businesses have changed their financial and philosophical outlook. This has resulted in higher rates of permanent employment, and also helped to create a more stable global economy that can easily sustain growth. The combined benefits of insourcing and outsourcing have created a situation where both can co-exist comfortably, however, meaning that business owners can tailor a unique infrastructure that helps them to reduce costs and drive expansion over time.
With this in mind, let's take a look at outsourcing and how it can drive greater levels of efficiency throughout your business. Consider the following factors:
Outsourcing Non-strategic tasks helps you to Focus on Mission Critical Requirements
One of the key benefits of outsourcing is that it can be applied to specific and independent aspects of your venture, which in turn enables you to distinguish between strategic and non-strategic business tasks. This is crucial, as while the former are central to long-term commercial growth and must be driven by business leaders the latter relate to operational procedures that can be outsourced to industry specialists. Take data capture and management, for example, which while being important to your business remains a logistical process that should not be managed by directors or strategic leaders. Fortunately, firms such as TNT offer a comprehensive data management service, so click here to find out more about how this can benefit your business.
Optimizing your Workforce for Individual Projects Reduces Costs and Maintains Quality
According to technology giant Intuit, 40% of the U.S. workforce will be self-employed by the year 2020. Similar trends are unfolding throughout Europe and the UK, where the freelance market is becoming increasingly talented and diverse in terms of the breadth of services that it can deliver. So by outsourcing specific projects according to their duration and workload requirements, businesses can utilize a vast pool of global talent while also reducing costs and meeting even stringent time frames. From IT service provision to copywriting and search engine optimization, outsourcing can also enable businesses to reduce their annual salary budget without comprising on the quality of work that is delivered. This is particularly suitable for specialist or high value projects, where companies can benefit by partnering with the best freelance talent from across the globe.
Creating a Flexible Infrastructure Makes Organic Growth Easier
According to a 2011 Gartner survey, organic growth remains a leading business priority for IT outsourcing providers from across the globe. This is a trend that is also prominent in other business sectors, as organic and natural growth is far easier to sustain in the long-term. Outsourcing can help your business to achieve this, as when applied to operational or non-strategic tasks it creates a flexible infrastructure that removes many of the barriers to expanding the workforce and taking on new projects. This is especially true over time, as you can come to rely on a core team of skilled freelancers who are available at relatively short-notice to handle newly acquired contracts.