What is outsourcing?
Business outsourcing is the practice of hiring external service providers in any professional area. Either because you want to do it faster, because you do not have facilities to carry it out internally, due to compliance with production standards, etc.
If you are an entrepreneur or have your own business, surely you have heard the term on more than one occasion. You will also have heard about the advantages of outsourcing services, or outsourcing as it is also known, of a certain process. Today we will see what are the advantages of outsourcing for SMEs and how to take advantage of these benefits.
What are the advantages of outsourcing for companies?
Small and medium-sized companies tend to be more efficient when they implement the outsourcing system. In addition, they are the ones who most often outsource services such as accounting, distribution, marketing and other important functions. Larger companies can also make a profit by cutting operating costs.
In other words, by outsourcing, your business can also benefit in one or more of these aspects, regardless of its size:
1. Work gets done faster
If there is an area of your work that causes you setbacks and it is a mechanical task, it is better to outsource labor. It's much easier and easier to delegate work and just monitor progress and quality.
2. You save space and office supplies
If you manufacture a product and your business is starting, surely your store will not be very large. However, the market demand usually varies during the year. There may be times when your premises or the company's installed production capacity cannot supply it. But, of course, you don't want to lose customers.
3. You reduce operating costs
In the same vein, when there is a peak work season, you may need more skilled labor to help you get the production out. It is also possible that, if you previously invoiced yourself or attended the orders personally, now you need help from someone else.
Before opening another place on the payroll whose cost will remain even when the season drops, consider the possibility of implementing outsourcing in services such as accounting, virtual assistant, billing manager, etc.
4. You get better results and quality work:
Imagine that there is a part of the work for which you have manual or basic equipment, but it could be done better if it is done with machinery: sewing, assembly, guillotining, packaging, painting, etc.
All this can be subcontracted to companies or professionals who are dedicated to it. Experts who have specialized equipment that gives it a better finish and reduces the cost by being able to mass produce.
5. allows you to implement new ideas faster
Another very important advantage of outsourcing for companies is that it allows you to start new projects or implement new ideas easier.
Sometimes creating a whole new area for the new product or service can take too much time or capital investment (which, in the case of SMEs, it is essential that it is invested wisely and carefully).
With outsourcing, you can hire labor, professional services or equipment on a temporary basis, without the need to make major internal changes in your organization.
6. You reduce possible risks and errors
Every investment usually carries risks. As you know, technology, market conditions, and laws often fluctuate constantly. Outsourcing before increasing human resources or renovating tools that may soon become obsolete is the best decision.
Of course, this does not mean not to renew internally or that your payroll will not grow, but that you must be cautious. Outsourcing allows you to do this much more easily. That way, you can invest more safely when the business shows sustained growth.
In addition, by hiring expert personnel in a certain area, you can obtain better results and reduce, for example, returns or repetitions of a process that was not executed correctly.
How to implement outsourcing in my company?
As you have seen, outsourcing can help you improve in many aspects: It converts fixed costs into variables, frees up capital to invest in other areas of your business and allows you to optimize your production.
However, you must know how to implement it correctly, since it is not advisable to outsource too many services or do it without having some key aspects clear.
Hire qualified professionals:
Something fundamental when implementing outsourcing in companies is the search for qualified suppliers. Therefore, it is important that you know not only the resume of the person you are going to outsource. Also request samples or a portfolio where you can appreciate a little more of their work. Another way is to request references from other people or companies that have worked with the person.
A good place to find professionals specialized in any area is a job platform like Human Kapital. You will be able to see the profile, curriculum and portfolio of each professional. In addition, you can see opinions or ratings of other clients with whom you worked.
The most important thing is that you can compare several offers at the same time before deciding. This way you make sure you get the best service at the best price.
Hiring outsourcing services for companies can be a great way to improve within your organization. The outsourcing system allows for qualified labor and talent while saving costs. For this, it is important to define how you will work with the providers of each service and how you will manage each thing. Therefore, it is important that you look for true professionals who know how to work under this figure. So you can dedicate yourself to your main activity, which is to search for new businesses and delegate the rest to experts.
In Human Kapital you can outsource professional services of almost any kind, either to work in your city or remotely.