Advantages of Outsourcing
Advantages of Outsourcing
WHAT IS OUTSOURCING
Outsourcing, by its Oxford definition, is “to contract work out or abroad.” Outsourcing is normally suggested to companies seeking functionality unrelated to their core business, allowing them to save money and time and to remain focused on their primary goals.
New executives in startup environments are increasingly using an outsourcing model to scale their business. Forbes’s Young Entrepreneur Council listed reasons why entrepreneurs use outsourcing and the two primary use cases were to assign specific tasks to specialists and to grow their business.
OUTSOURCING TO SCALE
Outsourcing can rapidly increase a business. It is a quick way to hire qualified people and service customers at an affordable cost.
When entering a new market, entrepreneurs often start in a smart, small way. They establish a market presence and build an infrastructure capable of scaling according to demand. Leveraging an outsourcing model ensures customer needs and deadlines are always met, regardless of volume or frequency.
Certainly opening the door to outsourcing is a long-term approach, which means it’s imperative from the beginning to find a partner on whom you can rely and with whom you feel comfortable sharing full control and access to processes and resources.
OUTSOURCING TO RECRUIT INTERNATIONALLY
The Oxford Economics Workforce 2020 report illustrated that 8 out of 10 companies struggle to build a team due to lack of available, skilled candidates. Research data also shows more than half of companies see a shift in their workforce strategy due to the globalization of labor supply.
Meanwhile companies accessing a pool of international candidates through outsourcing are one step ahead, dodging the labor shortage and leveraging a diverse group of experienced people whom they would not otherwise find and hire locally - at lower costs.
OUTSOURCING TO START A BUSINESS IN A NEW GEOGRAPHY
Traditionally, for a business to open a subsidiary in another country, it needs to understand the country’s laws, taxation, and local pay rates and benefits. It of course also needs to rent office space, look for candidates on LinkedIn, conduct interviews and identify right-fit hires, etc. All in, it requires great effort, time, and investment.
One way around this intense landscape is to partner with an outsourcing company, thereby avoiding these complicated steps in a legal, compliant way. Outsourcing is a secure and quick path to expanding business borders and serving new customers without significant investment and risk.