Did you that about 68% of US companies outsource one or more business functions. That’s more than two-thirds of American companies looking to outsource work.
Why do companies choose to outsource work?
Outsourcing is when a business obtains products or services from an outside supplier. In doing so, the business can focus on its bottom line and also cut costs. Outsourcing is mutually beneficial for both the company that outsources and the company that offers the outsourcing services.
Work outsourcing, for instance, enables companies to reduce labor costs for a portion of their workforce. On the flip side, the company offering the services gets job opportunities, so their workers can earn a decent living. It’s a classic win-win for both companies.
Most businesses are looking to outsource a few functions but don’t know which ones. Understandably, some obligations look too integral for one to outsource. That’s why most companies only outsource only a few responsibilities that seem feasible to outsource.
In today’s post, we’ll be highlighting a few business functions that you should consider outsourcing, and show you why outsourcing works.
Marketing
Proper marketing is imperative to a business’s growth and profitability. However, an in-house marketing team is too costly for most businesses. Prudent business owners outsource their marketing to an external marketing firm.
Reputable marketing firms will take care of everything from content creation, ad designs, and even your social media accounts. Marketing firms boast the best marketing talents who can help develop creative and effective marketing strategies for your business.
With all marketing functions off your plate, you can focus on more critical matters that keep your business afloat.
Customer Service
Having proper customer service can be a real headache for businesses, especially startups. Good customer service must be not only available but also understanding and empathetic. The little customer service training most businesses can afford may not check all three boxes.
If your business deals with customers via the phone or online, you should consider outsourcing your customer service. You can outsource to an outside call center or a chat service. Most of these call centers and chat services operate 24/7, so availability is something you don’t have to worry about.
However, outsourcing customer service isn’t as simple as signing a contract with a call center. You have to put the call centers employees up to speed on what your company offers and what information they should relay to the customers. That way, your customers can get the help they deserve or have their grievances addressed effectively.
Manufacturing
You don’t have to set up a sophisticated manufacturing plant if you’re on a tight budget. A better alternative would be to outsource manufacturing to outside manufacturing companies. Most offshore manufacturing companies can manufacture the product you intend to sell at a fraction of the price.
If you don’t trust offshore manufacturers, you can let domestic companies do your bidding. You can work with these partners to deliver high-quality products to your customers. Even industry giants like Nike and Apple outsource their manufacturing to overseas manufacturers.
Software and Website Testing
In the digital age, businesses that are quick to embrace technology have a clear edge over the competition. These days, a business without a robust online presence is virtually non-existent. However, if you want to kick things up a notch, you should consider getting custom software for your business.
After you create a website or software for your business, you’ll need to test it to confirm whether it meets business requirements. This testing helps identify any errors, gaps, or loopholes in your software or website. It’s the last step before you can roll out the software or website for business purposes.
Software testing is an elaborate process that requires skilled technicians and sophisticated technology to conduct. Internal software and website testing aren’t economically feasible, so most businesses outsource the process. This saves the businesses a bundle and ensures that they have functional and high-quality websites and software.
It’s worth noting that your software’s quality is only as good as the company you outsource for your software testing. So, what are the top software testing companies? You’ll have to do some digging and find that out for yourself.
Logistics and Shipping
If you have too much on your plate, you can outsource your shipping and logistics to an external company. Sometimes the manufacturing facility can handle shipping logistics aside from doing the manufacturing. There are plenty of drop shipping companies that can ensure your products reach your clientele in good time.
Businesses in ecommerce should prioritize outsourcing their logistics and shipping for increased profitability. That way, you can run an entire business from your desk without even having to travel a block away. Outsourcing your shipping and logistics could save you a lot of money and sleepless nights.
IT Management
The great thing about IT tasks is you can easily outsource them provided you have a stable internet connection. Keeping up with the technical mumbo-jumbo in IT is enough to drive any business owner insane. You can hire an internal IT team, but you’ll have to dent your business account.
If you need help with your business’s IT responsibilities, why not outsource them? Most IT firms offer on-demand services to offer assistance and address any issues and other IT outsourcing work. Alternatively, you can opt for a managed service provider to handle all your IT needs.
Also read: Managed IT Services Guide
Sales
All the technical and administrative tasks in board rooms culminate in the actual sales that happen on the ground. As such, you need an expansive and motivated sales team to rake in the profits. If you don’t have the personnel for sales, outsource to individuals who will get you the sales you want.
Work Outsourcing Is Never a Bad Idea
Both product and work outsourcing always work for the good of your company. If you had no clue what functions to outsource, we hope the information above will help you figure it out. However, make sure you outsource to reputable companies that add actual value to your business.
For more informative content, check out our other posts on this blog.
