Why Outsourcing May be the Right Move for Your Business Right Now

12/6/2021 | By Marella Gimenez

Why Outsourcing May be the Right Move for Your Business Right Now

Outsourcing is a popular business decision that can be beneficial to your company, especially in today's economy. Business owners must make difficult decisions every single day, but one area where they should not skimp on is their workforce. There are many reasons why hiring an outsourced workforce might be the right move for your company right now: (1) you get access to skills beyond what you could find within your own organization; (2) it reduces overhead costs; (3) it allows for more flexibility when demand fluctuates; and much more!

But still there are some myths and false stereotypes regarding outsourcing. Some companies are hesitant because they think that outsourcing is inefficient due to culture difference, provides low performance and productivity, and developing countries cannot provide service like in Western countries. In reality, companies can establish effective communication with the contractors to achieve optimal productivity, performance, and efficiency.

Without further ado, let us delve into the meaning of outsourcing and how it can help you with your business.

What does outsourcing really mean?

Outsourcing is a strategy wherein a company will hire a third party to perform services that will help them instead of traditional in-house hiring. If the company is cutting labor costs, outsourcing is the key to continuously operate. Most companies also consider offshoring, which means they are outsourcing operations from other countries.

Initially focused on highly transactional back-office processes or non-critical services.

Outsourcing can perform strategic functions. While these outsourced employees can work with back-office processes, the company can focus on its core aspects.

Outsourcing can lessen operational costs.

It is a business practice of contracting with an outside party to take care of certain tasks instead of hiring new employees or assigning those tasks to existing staff. Through this, you will not need to undergo intensive training and onboarding of new employees, as well as invest in additional equipment to support the increase of headcount.

Outsourced tasks may be occasional. For example, one may not need to hire an accountant full-time if they will only do your taxes once a year. They may also be a regular part of business operations, such as contracting with a cleaning firm rather than hiring janitors as employees.

However, there’s more to the future of outsourcing. Besides small operational tasks, more and more businesses choose to outsource high-end functions and processes. Nowadays, we have an entire pool of possibilities and reasons to consider and incorporate this practice. Call centers and similar customer care services, software development, and human resources only represent some of the commonly outsourced positions and job functions.

If you are looking for strategic ways to efficiently grow your business, maximize your potential, and lessen labor costs, outsourcing or offshoring can help you. KMC Solutions is focused on providing customer-centric solutions for business owners and leaders. We ensure that you are in good hands because we onboard selected and skilled employees. KMC studies on how to address the issues within your company. But above anything else, we commit on onboarding professionals and experts and on providing support and security for your offshore team.

The most frequently outsourced jobs and functions are the following

If you are worried about finding specific jobs and functions, do not fret. You can find a wide range of contractors and employees outside your office that can offer what you need. These are the most frequently outsourced jobs and functions that KMC can also provide.

  • Customer Support Services and Call Centers: They can provide a range of customer services to assist your clients.
  • IT Outsourcing: Information Technology experts can help you with the creation, development, management, and optimization of information within your company.
  • Legal and Tax Compliance: Get legal and tax services for the security of your business. They can provide advice and consultation.
  • Content Development and Digital Marketing: Widen your reach through engaging marketing. They will prepare strategies, methods, and calendars to boost brand visibility.
  • Web Design and Maintenance: Customize your website through the help of their services. They focus on building your website in accordance with your branding.
  • Logistics: They help businesses in producing and distributing raw materials and products from the supplier to the customer.
  • Manufacturing: This type of services helps their clients reduce their costs and provide speedy production.
  • Supply Chain Management: Get an easy flow of goods, services, and processes to maximize customer value.
  • Human Resource Management: They focus on finding talent for your workforce, as well as handle the training, onboarding, and processing of their papers.
  • Accounting and Finance: They help in the creation of financial reports and interpret them to assist you in decision-making.
  • Training Administration: They are responsible for the coordination of employees, employers, and management training.
  • Research and Design: As business grows, leaders will need to innovate and create new products. This type of services can focus only on research and design of new materials, processes, and products suitable for your business.

Why outsourcing may be the right move for your business right now

It can provide your business with faster and better output delivery!
Make your service and product offerings better with high-quality deliverables and decrease the lead time it takes for your product to reach the marketplace. Thus you would be faster in getting your ideas converted into products and better at delivering the value-added proposition.

It allows you to focus on your core activities.
Outsourcing important but mundane activities can allow you to refocus your in-house resources on the activities that make you profitable without sacrificing quality or service. If your business revolves around skincare, you can focus on the production while outsourcing social media marketing manager or web developer to boost your brand.

It’s an opportunity for you to lower your costs
It's more cost-effective to outsource than to expand operations internally because the expense of the following can be prohibitive:

  1. Needing a location: Having an in-house employee means that you will need to allocate a budget for office space.
  2. A hiring search: Looking for the right talent can also be daunting.
  3. Purchasing equipment: Hiring an in-house employee also means that you will need to procure and provide equipment for them.
  4. Onboarding: As an employer, you will need to provide training to onboard them.
  5. Healthcare and other benefits: You also need to consider their benefits as a return of their commitment to work.
  6. Payroll taxes: The company shall compute for their payroll and taxes which means you will need to hire another talent that will do this job.
  7. Increased need for workers in management and HR positions: As your in-house employee numbers grow, you will also need people that will handle them and their benefits.

It can definitely promote growth!
Outsourcing can be a good option if the cost of expanding to handle those operations yourself is too expensive, would take too long to effect, or would create inefficiencies in your business model. Don't worry about scaling your business because there are a lot of contractors that will help you achieve your objectives.

Outsourcing can help you maintain operational control
An outsourcing company can often bring better management skills to your company than what would otherwise be available without significant restructuring. Integrating a new in-house employee can be challenging but outsourcing is different. Most of them focus on providing results because they have expertise in specific fields.

It offers staffing flexibility
Outsourcing allows operations or departments that have cyclical demands to bring in additional resources when they're necessary. More than that, you can access experts and professionals from all over the world.

It provides continuity and risk management
Outsourcing the human resource function reduces risk and allows the company to keep operating while the manager is unavailable. It also gives you time to hire a new assistant without rushing the decision because the office is understaffed.

Helps develop internal staff
You can also find contractors that can work together with your employees. On-site outsourcing, allows you to bring in contractors to operate at your own location - hence, can provide you with the people who possess the skills you need while your people work beside them to acquire a new skill set.

In Conclusion: Elevate Your Business Through Outsourcing

Handling a growing business can be challenging. Costs and operation efficiency must be considered to constantly scale your business. That is why working with the right outsourcing team is crucial because they can provide a tremendous impact for your business.

Instead of hiring in-house employees, save your operational costs by partnering with outsourcing or offshoring teams from all over the world. KMC strives to provide the best outsourcing model to accommodate your demand and resolve your problems.

What are you waiting for? This is it. If your business is looking for teams that focus on excellence and passion, feel free to connect with us!

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