Outsourcing - Here’s why to think about it
Today we see that more companies are outsourcing various comprehensive projects. In 2017 Apple pointed out that their former contract manufacturer for parts and components supplier, Xia Xhimin Co., was outsourced.
Outsourcing gives access to skilled talent. Even more, outsourcing can offer the latest technology, innovative approaches, and creative, cutting-edge solutions that otherwise are not available. On top of that, a skilled company can generally execute tasks more affordable instead of hiring a full-time employee. This implies that the costs of employing, coaching, and maintaining workers are eliminated. Outsourcing is a business model that includes the involvement of an external team or external company to perform services that were traditionally performed in the company. This endeavor used to be done for cost reasons, more precisely to reduce them. Although companies initially used outsourcing to reduce labor costs, which included wages, insurance, work techniques, and technology, this way of thinking has changed over time. The change in trends has conditioned the change in this business practice and from the aspect of the budget, it has expanded to other fields.
How did outsourcing develop?
The industrial revolution led to the need for outsourcing as we know it today. In the ‘80s, companies turned to outsourcing accounting and payroll because they were tax-deductible. There is a wide range of opportunities and reasons on the market why this practice should be considered and incorporated into the business. Call centers and similar customer service, software development, sales, marketing, and human resources, are top outsourced positions today.
Main benefits are :
- Greater flexibility
- Increased performance
- Focus on the core of competence
- Accessibility of more skills and expertise
- Infrastructural advantage
- Scalability and growth
- Faster time to market
- Increased ROI
- Peace of mind
While outsourcing may not seem like an easy task, it is worth getting comfortable with. In 2021, this is a business decision that can make or break your project. Once you understand the benefits of outsourcing and how it can help you kickstart your idea with less cost, more flexibility, better skillset and returns, the hunt to find a top-notch agency to outsource will be simple.