Using Outsourcing To Grow Your Business
Achieve Increased Efficiency, Operational Performance And More By Outsourcing To A Trusted Partner Your Non-Revenue-Generating Activities.
Small business owners have many compelling reasons to outsource - costs savings, improving performance, avoiding recruitment woes, and more. Despite the apparent benefits, many companies are not sure how to get started with outsourcing and therefore are reluctant to forge ahead.
The process starts by acknowledging and understanding which tasks to outsource and which tasks to keep in-house. Generally, the most successful tasks to outsource are those that have low-impact and are repetitive, but consume a significant amount of time and resources. Examples of these kinds of tasks could include accounts payable, accounts receivable, bookkeeping, administrative work, transaction support and data entry.
Since outsourcing started as a growth strategy for businesses, all of these repetitive and time consuming tasks have added up to a fairly large industry. Research shows that business outsourcing has created more than $23 billion in revenue in 2018 and that the total market is expected to be worth $262.2 billion by 2022.
There is a definite demand for business outsourcing, that is primarily driven by the desire of business owners to make their businesses run more efficiently and effectively. It has been proven with the ever increasing amount of businesses choosing to outsource, that this goal can be achieved, if done with the right outsourcing partner.
Working Less To Achieve More
Most back-office processes are non-value-adding activities, i.e. functions that need to be done to manage operations but do not directly contribute to business growth. While companies can not ignore basic procedural tasks, such as accounts receivable, accounts payable, or reporting, these operations do not actively bring in new clients and sales to the business, which is where a back-office outsourcer can be used effectively.
Back-office tasks are perfect for outsourcing because they require a significant amount of organisational resources that could be better used for other business functions, such as business growth. Imagine a business wanted to open another location, introduce a new product line, employ a top executive, or upgrade its online presence. Initiatives such as these take a considerable amount of time and energy, but if decision-makers also have to think about routine tasks, they will only be distracted from the potential opportunities to grow their business.
By outsourcing these tasks, decision-makers have more time to concentrate on business growth. Essentially, replacing tasks that don't add value with tasks that do. A study of 1,700 businesses found that outsourcing accounting activities lead to higher revenues, better financial analysis and more referrals. The reasons to outsource are therefore glaringly obvious. Outsourcing allows companies to concentrate on business growth instead of worrying about the repetitive and time consuming business administrative tasks of running a business.
It should however be mentioned, that outsourcing back-office functions only works well if the process is organised and your objectives are clear. Without proper preparation or proper verification procedures in place, it is not uncommon to end up with a failed partnership. Integrated Globaltech are an experienced outsourcing provider having helped many businesses with their outsourcing requirements.
Using The Most Talented Individuals For Routine Tasks
Outsourcing leads directly to greater efficiency, because it enables companies to rely on the top talent of individuals and good practices to handle routine tasks. Allowing a business to get the best talent for each business function and allowing businesses to focus their efforts and resources to build their business and maximise efficiency. All while the third-party outsourcing partner is building teams of individuals whose work is not essential to the business's value or revenue generation.
High-quality outsourcing partners who use offshore talent will offer expertise (degrees, qualified individuals) at a much lower cost. A CPA employed in Manila, Philippines, will operate with the same expertise as a CPA or CA in Australia or New Zealand at a much lower cost. What's more, outsourcing ensures that you don't have to think about recruiting, monitoring or retention because the outsourcing company handles these functions.
Many back-office tasks can be outsourced in a similar way. Business needs accounting and administrative staff, but accounting and administrative staff do not directly influence customer retention or sales. Financial reports could easily be obtained without having to do all the analysis, including data entry and invoicing.
Therefore It can be seen from above, that by outsourcing a businesses repetitive and time consuming tasks, it can lead to greater business growth. Outsourcing frees up business resources to be used to more efficiently and effectively, allowing businesses to focus on crucial revenue-generating activities.
Of all the reasons to consider outsourcing, the most persuasive is that it reduces obstacles that hamper business growth.
If you are considering outsourcing any back of office task, please feel free to contact Integrated Globaltech, to see how we can help.