Is Outsourcing For Small/Medium Size Companies?

As a business, you’ve probably encountered suggestions for outsourcing solutions. Outsourcing solutions covers parts of your operation to the extent that it would have you thinking about outsourcing everything you need. In theory, you can do that. But just because a lot of businesses are trumpeting the benefits of outsourcing does not mean that you should automatically follow. Should you leave talent management, for instance, to an outsourced company? It would be best to consider the benefits of outsourcing first before making a decision.

Focus On Your Business

Letting you focus on your core activities when a company expands, so will all other aspects of it. If you don’t have enough resources, you will end up having to compromise in certain areas, compromising the growth of your company in general because you can’t keep up with all the demands. Outsourcing certain areas of your business will leave your resources intact so you can divert them into areas that really matter, such as the core activities that gave you the capability to expand in the first place. You can’t do without back-office services so simply letting others handle those services for you will resolve a lot of problems you might be having.

Allows for Quick Growth

Letting you become more efficient as your business grows, you will need to increase back-office functions as well in order to cope. However, keeping up with those back-office functions may end up derailing your growth because of the upkeep. For example, an expanding doctor’s office will get a lot more patients if more insurance plans are accepted. However, there are different insurance providers and a million terms and conditions to keep up with and for an ordinary office assistant, this can be overwhelming. Opting to outsource the medical billing portion of the business will help the doctor streamline his services and become more efficient in the overall. Efficiency also turns to savings in the long run because you don’t end up wasting resources for various activities.

Decreases HR Overhead Costs

Letting you reduce overhead costs as you grow, so will your needs. Unfortunately, catering to these needs can be costly. Consider this example as to how outsourcing solutions can help you: Growing as a business means you will need a bigger office. But office space is expensive. Outsourcing some of the back-office functions you have will eliminate the need for more office space because those functions you outsourced no longer have to be performed in your office. Not needing more office space will then let you stick to your old costs (letting you save by default) while still getting all the back-office functions you need.

Let’s You Be Proactive Rather Than Reactive

Staffing flexibility there are certain functions in your business that are cyclical or seasonal in demand. Hence, you only need people to work for you for certain periods of time. Having to bring in an employee just to cover the spike can be tedious and will waste precious resources because your resources are being diverted to the employment process instead of the job you just need done. Outsourcing will let you skip out on all the hassle by going straight to having the job done. And the sooner the job is done, the sooner your business will benefit from it.

JOKE of the Day

Pick a Starting Salary

Reaching the end of a job interview, the Human Resources Person asked the young MBA fresh out of MIT, “And what starting salary were you looking for?”

The candidate said, “In the neighborhood of $125,000 a year, depending on the benefits package.”

The HR Person said, “Well, what would you say to a package of 5-weeks vacation, 14 paid holidays, full medical and dental, company matching retirement fund to 50% of salary, and a company car leased every 2 years – say, a red Corvette?”

The Engineer sat up straight and said, “Wow!!! Are you kidding?”

And the HR Person said, “Certainly, …but you started it.”