Management & Strategy
IS OUTSOURCING GOOD OR BAD FOR YOUR BUSINESS?
4min read
Is outsourcing good or bad? For many years, owners of small and midsize businesses looked at outsourcing much like some homeowners viewed hiring a cleaning person.
Outsourcing is a great tool that can be used to improve business workflow. If you want to discover how to use it for your benefit keep reading. We’ll tell you about both the positive and negative sides of this tool and its influence on your business.
5 Main Reasons Why Outsourcing Is Good For Your Business
The best thing you can do with your business is to use outsourcing services to cut expenses. It’s pretty obvious that if you spend less than you make, you get a higher profit. Just calculate how much money and time you would have to spend on hiring a team, its training, providing a workspace for them, etc. With such expenses, it’ll be months before you could get a solid profit.
Outsourcing to nearshore or offshore agencies is especially good for small businesses as services cost much less than in Australia. You can give people from developing countries jobs and get a profit from spending a small amount of money on their work.
Why is outsourcing good for big businesses? You can lower the price of your products and services which would attract more clients and increase your business profit. Another positive effect of outsourcing is that you don’t have to pay taxes. So, you spend less money. Staff that will work for you, will be hired by the agency and not by you, so that you won’t deal with any bureaucratic aspects of your cooperation.
Scaling up your business output is another advantage of outsourcing. If there’s a surge in your product’s or service’s demand, you can hire extra help using outsourcing resources. After the busy season is over you can either let the outsourcing team go or hire them on a permanent or contract basis.
The main advantage of outsourcing for businesses is cost savings. It can save time and money that would otherwise be spent on things like employee wages, taxes, benefits, training, office space, equipment, and more. Furthermore, it is often cheaper to outsource services than to hire full-time employees. This eliminates the need to take on extra overhead costs associated with it.
Here Are 5 Top Reasons Why Outsourcing Is Good
It cuts your spending
Save up to 70% off your employment costs.
It boosts business productivity
With the money saved, you can reinvest back into the growth of your business.
You can use it in any niche in the market
We have highly skilled staff to meet the needs of any position, in any niche.
You avoid all employment issues moving forward
Employ as many staff as you like and we take full responsibility for the legal requirements for you.
Improve Company Focus on Core Business Processes
Outsource professionals can get the job done as quickly as possible and the best part is you do not have to allocate funds for equipment or facilities to provide your resources. So you can focus more on your business.
Are There Negative Effects Of Outsourcing?
Nothing is perfect in this world. Although outsourcing is obviously a very beneficial practice for your business, there are some negative sides to it.
Here are some negative effects of outsourcing:
- Your cooperation won’t be as hands-on as with the staff in your office
- You may feel uncomfortable during the first few days while onboarding
These factors are not always true for all industries and don’t have that much impact on business. However, you should be prepared for them. To avoid any negative effects, it’s better to define them in advance and try to find solutions to them. Just hire one or several employees outside your office and see the result. You’re likely to save over 50% off your costs during the first three months.
Take the first step and define a monthly budget for your first outsourcing team. Just try using this method of cooperation to evaluate its best sides. It’s a good chance to make your business more profitable. You don’t lose anything. You don’t have to hire or fire anyone. Just provide the instructions and monitor results during the first months.
If you want to know more about how Outsourcing can impact your Business, please contact us for an Obligation Free Discovery chat or call Gerald at +61390163739.
