Save money through outsourcing
2 Minute read
Want to save money but still grow your business? Outsourcing processes and roles could be right for your business. Some businesses have a mental block when it comes to outsourcing because they think they won’t be involved in that side of the business anymore but that’s simply not true.
More and more companies around the world are looking to outsourcing to solve cost problems and to keep prices down for their customers. According to the Economist, the average US manufacturer outsources 70 to 80% of its finished product. “Outsourcing can increase productivity and competitiveness 10- to 100 fold. For every 1,000 jobs British Airways send to India, the airline saves US$23 million.”
In a survey conducted by the Economist, 90% of firms cited outsourcing as crucial to their growth strategies. A Java programmer earns US$60,000 a year in the US, but $5,000 a year in India, the magazine reported.
Outsourcing begins with understanding your business’ purpose, and then identifying what roles you need to achieve your goals, and which of these roles could be outsourced.
The most important factor when deciding whether to outsource is to select a good provider who will guarantee the quality of work and ensure that the right processes are in place for your business to succeed. Good providers will also provide fully operational offices including infrastructure such as desks, computers, security and internet.
When you outsource, you rely on a contractual relationship with a service provider, and that’s why picking the right one becomes so important. Some businesses are also worried about what their customers will think if they outsource, but if a business is outsourcing for the right reasons, then that should become apparent to customers and cost savings then rolled onto them.
As the popularity of outsourcing increases, it will become (if it’s not already) a consumer expectation that companies outsource specific operations, and as long as companies are honest about this, it should only assist their growth and prosperity.