Why Outsourcing?
Freedom To Focus On Your Business
Outsourcing is a game-changing business decision. It is a strategy that businesses utilize to manage market shifts and unexpected demand spikes and to meet organizational goals. In today’s competitive market, outsourcing makes sense for practically all businesses, regardless of company size or industry.
Businesses worldwide outsource staff as part of their operations strategy. The global outsourcing market is expected to grow from $241.7 billion in 2021 to $512.4 billion by 2030, making it a more attractive choice for businesses trying to minimize costs and improve profits.
It is worth noting that outsourcing is no longer limited to large enterprises. With today's technology, outsourcing is becoming more affordable, and smaller businesses can now benefit from higher productivity and cost savings.
Focus On What Matters
Business processes not suited to your company's capabilities should be outsourced to organizations that can manage them better and faster. Outsourcing allows you to focus your time and resources on more meaningful work. You can handle essential matters that will have a significant impact on your business without diverting your focus to non-essential tasks.
Enable Growth
A business should not confine itself to its current location. Through outsourcing, a small business can take part in globalization by seeking assistance from international companies for specific tasks and possibly exploring possible cross-border transactions. It should be mentioned that more services, such as manufacturing, production, and even distribution, require outsourcing.
Reduce Labor Costs
In 2020, Deloitte surveyed 40 senior executives and discovered that cost efficiency was the most common reason for outsourcing decisions amidst severe economic disruption. For these companies, outsourcing was one of the various methods used to save money. Working with the right outsourcing provider allows your company to complete the same amount of work at a lower cost.
Gain A Competitive Edge
Since outsourcing allows your company to focus on high-value activities, you can differentiate yourself from the market. Businesses can maintain a small workforce while accessing resources across the country (or even around the world). This allows you to leverage higher levels of expertise and offer more services at a lower cost than your competitors.
Control Cash Flow
One of the advantages of outsourcing for your company's performance is that you shift the fixed cost of compensating full-time employees to a variable cost of paying an outsourcing company, depending on the services performed. As a result, your company has a more consistent cash flow, which can be used in other areas of your business.
Improve Service Quality
You can increase productivity and efficiency via outsourcing to the experts. Using providers with more experience and specialized processes results in higher quality. It can also improve job quality by bringing in pros from the field without incurring the additional costs of hiring them.
What Can You Outsource?
The key to successful outsourcing is determining which tasks will benefit your company the most if they are outsourced. What you outsource depends on your business and interests. The best functions to outsource are typical administrative tasks such as bookkeeping, accounting, marketing, and IT.
Many small businesses lack the staff and experience required to keep up with their accounting. When you outsource accounting services, your company gets expert help with time-consuming functions and processes. This low-cost solution eliminates the need for extra full-time accounting staff. Outsourcing your accounting also improves business efficiency by allowing your staff to focus on their tasks while qualified professionals deal with your accounting or bookkeeping matters.
There are no limits to what can be outsourced, as long as you do the following:
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Review your business goals and objectives. Determine which tasks must be outsourced and which can be handled in-house.
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Understand the costs of outsourcing and determine if it fits your current budget.
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Find out which services best suit your needs by speaking to multiple service providers.
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Negotiate the cost and features of the service. But keep in mind that your best option might not necessarily be the cheapest.
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Assess the customer service and service quality of each of your top choices.
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Prepare a back-up plan in case your initial choice fails to materialize.
When To Outsource?
Knowing when to outsource is a critical business decision.
Many business strategists advise using outsourcing services as soon as your cash flow permits.
If you find yourself in any of these situations, it is time to outsource:
> Expensive hiring process, compensation, and benefits
> Limited knowledge
> Skills gap
> No time for high-value processes
> Overworked staff
> Need to expand and scale up
> Risks in business continuity
What You Need To Know
According to Forbes, you should always do what you’re good at when deciding whether to outsource. “Sticking with your core competency is an absolute must,” they add.
Ask yourself these questions while considering whether to outsource:
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Do I dread doing this task? Outsource that grueling task to someone who might enjoy it.
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Are there any tasks that I tend to put off? Though you may not absolutely despise these tasks, they are the ones that you tend to put off or postpone.
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Which tasks are mundane and repetitive? These are the tasks that must be done regularly but don’t provide real value to your company.
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Is the task integral to your business? If not, save yourself some time and outsource it.
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Am I an expert at this task? If there is an area in your business that is not your strength, there is no need to pretend to be great at it because you will only waste time, money, and effort doing so.
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Is your staff overworked? If your staff is overwhelmed with the demands of excellent customer service, it may be time to outsource.
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Is hiring someone from outside the office going to be less expensive? If so, delegate. Consider bookkeeping and accounting services. Most small businesses cannot afford a full-time, in-house CPA.
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Could someone else do it better? Think bookkeeping and accounting. It’s easy to outsource these tasks.
The Peach BPO Advantage
When you outsource, quality matters. With Peach BPO, you gain access to world-class experts. We always hire the best because we want to represent your company with the utmost professionalism. You can be confident in outsourcing your bookkeeping and accounting to experts that are passionate about your goals. We differ from other outsourcing companies because we understand that every business is unique. For us, you are more than just a number.
At Peach BPO, we genuinely care about you (our clients) by helping you better understand your business issues that will help you run your business better. Having a holistic understanding of your most pressing issues allows us to provide personalized and comprehensive service. We hold your hand as needed, provide valuable advice, develop cost-effective solutions, and reduce your stress levels.
Let us take care of the bookkeeping and accounting side of your business so you can focus on what you do best: running your business. Contact our Athens or Atlanta office to learn more.
Why Opt For Outsourcing?
There are numerous reasons why businesses opt for outsourcing. According to the Outsourcing Revolution report, the primary motivation for outsourcing has moved beyond simple cost reductions, with more than 90% of businesses seeing "outsourcing as critical to their growth goals."