5 Reasons Why You Should Outsource

Advantages of outsourcing include improved systems and quality of services, access to most skilled professionals around the globe, better time management, avoiding staffing issues and many more.

Outsourcing is an effective strategy of contracting out business processes to third-party providers. When applied in a legitimate way, it lessens the risks involved in various processes providing an array of benefits from cost savings to greater competitive advantage and service improvements. It can help your business become more flexible, agile, and able to adapt to the ever-changing market, its conditions and challenges.

Although formally recognized within organizations in the late 80s, the need for outsourcing emerged a few decades earlier. Much like today, in the efforts to participate in a global market, companies had to bring up their creativity and flexibility. Most of the big players went for the strategy of focusing on their core business, which is considered the greatest quality of outsourcing.


What started mainly as an approach for financial saving developed into a strategic management device and an invaluable part of conducting business in a rapidly changing globally expanding market. For successful outsourcing wise decision making and correct management are pivotal. These are the substantial advantages of the practice to help you understand what’s in it for you.


#1 Focusing on your core business activities

Outsourcing can enhance the operation’s performance considerably because it frees up time and resources to focus on your core business aspects and allows your staff to concentrate on their main duties and the future strategy.

Tasks that aren’t suited to your skills - or which you lack the knowledge for - should be outsourced to professionals that can handle them much better and in a shorter time frame. Every second you spend on handling something that doesn’t play to your company’s main strengths is a waste of money and work hours.


For example, if your company is a Marketing Agency, you can outsource website development and maintenance and devote all your efforts to marketing tasks instead. If your company is specializing in IT services, you can outsource the development of a phone app to a third-party developer that has experience of implementing node.js and react solutions.



#2 Reducing Costs and Assorted Expenses

One of the most time and cost-consuming processes of any business operation, regardless of the size, is hiring and training the staff. These processes can take months and even then, there is no guarantee that the employee in question will turn out to be a good investment and solid addition to the team. Outsourcing allows you to convert labor costs to variable costs by paying only for the services you plan on.


Most companies have times of the year when they have more work, and consequently, more capital, and periods when business is slow. In ordinary circumstances, you would pay all of your employees the same wages year-round, as well as other expenses - office and toilet supplies, furniture, specialized equipment, computers, servers.


When outsourcing, you are paying only for the services and their fixed results scaling your needs and costs to your own requirements. Outsourcing jobs and tasks to other countries will also save the money you would otherwise have to spend on taxes and expenses like employee medical insurance.


#3 - Better Cash Flow Control

Once you benefit from transforming employees related costs into variable costs you can use those funds to improve your existing processes and infrastructure. Of course, this is especially useful in the early stages of a company, product, or marketing campaign lifecycle, where every little bit of extra counts.


Another gain of outsourcing is that it cuts down some of the other expenses that may incur during a project. For example, if a website needs to be built from scratch, on top of manpower and cost investment additional fees for software licenses will arise. There’s very little point in investing in expensive software and SaaS licenses that you plan on using only once. When hiring an outsourcing firm, besides their time and expertise, you get their software tools and as well as other resources.

Having a more tightly controlled cash-flow system indicates your business is operating at optimal capacity. It is certainly one of those desirable metrics that you can proudly present to your upper management or investment board as proof that your excess cash reserves can be funneled into other ventures.


#4 - Access To New Resources

Access to capabilities and facilities otherwise not accessible or affordable can make a monumental improvement to your business. IT experts spend significant amounts of time learning how their company handles data workflows, privacy, and security, but are also expected to continuously learn new tools and keep up in a rapid, ever-expanding world of modern tech services. When you outsource, you are getting the services of an already established group of experts. All you have to care about are deadlines and results.

This is particularly useful if you are hiring outsourcers for a task that you or your company does not have experience in. Instead of learning how to do these tasks on your own time - and on your company’s dime - you can outsource the task to someone who will execute it quickly, efficiently and with greater quality.

An increased talent pool that outsourcing brings to the table is fundamental for continuous company growth. Access to experts from different backgrounds and skill sets, the process of connecting with them and making use of their knowledge is made easier. Even if you hire their services for one-time, you can always re-establish a working relationship again quickly and easily.

#5 - Better Risk Management

After all, there are countless situations where outsourcing appears superior to traditional work. If an employee that is vital to the operation suddenly quits it can cause a major disruption to the business. Canceled projects, missed deadlines, extended recovery time are just some of the problems that may occur. Instead of entering panic mode and hurrying up to find a suitable replacement - which could take months to properly train - you should first consider outsourcing. It may be the best way to proceed to work without interruptions, safeguard your business when vulnerable and ensure you always continue to manage and minimize risks.

If you would like to improve your business through the use of outsourcing, contact us at office@inviggo.com to discuss how we can assist with your web and mobile development
needs.