When your business is growing, don’t even think for a moment that you don’t need help. On the contrary, you NEED it. You need help not because you don’t know how to run your business, but as your business grows it’ll become almost impossible for you to manage it all by yourself.
This is where the idea of outsourcing comes in. Outsourcing, better known as “Business Process Outsourcing” (BPO), it is the process of hiring an individual or company to handle your administrative or business work. It is now common practice for business owners to delegate all or some of their workload in a third party to improve efficiency. Outsourcing is used by companies to focus on improving competency and cut costs in the long run.
Outsourcing was already being practiced long before there was a name for it. The word”outsourcing” was first coined as “outside resourcing” in 1981 by the Oxford English Dictionary. It has gained different meanings since then, including the transferring of assets and personnel from one company to another. But the one that stood out is the contracting out of administrative and business processes to a third party.
Reasons why businesses opt for outsourcing are varied, but the most common reasons are:
- It involves less money – With outsourcing, it’s not necessary for business owners to provide benefits to workers and it cuts down on expenses.
- It allows your business to focus on more important things – Since you have delegated less essential tasks to your outsourcing team, you can now concentrate on things that are more important for your business growth.
- It allows you to establish partnerships with other businesses -With more time and resources you can focus on building partnerships with other businesses and entrepreneurs.
Outsourcing comes in all shapes and sizes, depending on the services they provide. Some of the more well-known outsourcing services are:
- Inbound Customer Service – also known as “call-centers” , with employees (telemarketers) handling calls from customers.
- Virtual Assistant Services – a service where business support is provided by a virtual assistant.
- Admin Support – usually a team who handles the administrative tasks such as accounting, clerical work, payroll management, etc.
- Web Design & Development – experts who assist businesses on the development of their online websites and apps.
- Marketing, Promotions & Lead Generation – online workers who specialize in search engine optimization (SEO), lead generation for businesses, internet marketing and social media management.
Spending for outsourcing in the enterprise software, devices, data center system, Telecom services and IT services has seen growth over the past years. In 2014 alone, Gartner.com has seen a 0.4 increase ($140 Billion) from the previous year, as part of the worldwide increase of spending for outsourcing with 2.1 percent.
Outsourcing makes things easier for business owners when the outsourced teams themselves are experts in their own field. Whether they handle the management of your Human Resource or Marketing/Sales Support, it’s important to outsource to reliable, established service providers to make sure that they deliver the goods on time and save you money.
Outsourcing is not a fad. In fact, it is a necessity for most of these businesses to become competitive. It’s a business practice for you to take full advantage of the growth of your company and should be part of the plan as soon as your company is growing. Because with a competent outsourcing team at your side, there’s no limit to what your business can achieve.