Over the last decade, we have witnessed significant growth in the outsourcing industry. In the beginning, companies mostly used to outsource customer support services, but as time passed, more companies started realizing that outsourcing certain projects and tasks made growth and expansion possible.
Today, companies of all sizes are choosing to outsource their digital marketing as well as critical projects such as software and website development in an effort to scale their businesses.
Digital media and development agencies such as CoolCat Digital make it easy to expand by helping you manage and implement your most important projects and business activities, promoting efficiency and driving growth.
What does outsourcing entail?
Outsourcing, which is also referred to as Business Process Outsourcing, is the practice of hiring a third party to handle certain projects or business activities on your behalf. Outsourcing is often used by businesses that don’t have the time, skills or resources to complete specific tasks and projects. Hiring a third party means that businesses don’t need to spend the time and money hiring a new employee or upskilling a current employee, and can still get the job done right.
Overall, outsourcing gives businesses the opportunity to cut costs, improve efficiency and truly focus on their core competencies.
Is outsourcing really worth it?
Outsourcing is the best way to fill any gaps in your business. If you’re still wondering if outsourcing is truly something you should pursue, here are a few of the key benefits.
1. Drastically reduce costs
The cost of hiring a new employee far outweighs hiring an individual or outsourcing partner to assist you with a particular project or task. Not only will it not be necessary to find funds for an additional payslip but overhead costs such as rent and equipment bills will be minimized too. In addition to that, you will not need to cater to employee health insurance and other employee social services.
2. Instantly access a team of experts
Outsourcing means that there’s no longer a need to spend days interviewing candidates for a new position. Outsourcing gives you instant access to a team of highly-skilled experts who are the best at what they do and it will be a straightforward process managing the team. Finding employees who have enough experience to match your project requirements can take time and cost money but outsourcing eliminates this.
3. Improve the efficiency of your business
Outsourcing gives businesses the opportunity to streamline and improve their capabilities without having to hire new employees. Outsourcing your development projects and marketing activities means your in-house team can be more productive and you can direct your cash flow into other areas of your business.
4. More time to focus on your core business values
When you outsource your development and online marketing, you’re far less overloaded with work. This will leave you with more time to focus on improving other areas of your business that will highlight your core values to your clients.
5. Better risk management
Outsourcing shares the risk with your outsourcing partners and reduces the burden on your business. Using an outsourcing company to assist you will reduce the risk of trying to complete the project in-house using staff that may not have the right skills to get it done right the first time.
6. Gain a competitive edge
If you’re looking to gain a competitive edge in your market, outsourcing is the answer. Outsourcing allows your business to easily expand and improve your current offering and be one step ahead of competitors who may not have realized the benefits of outsourcing yet.
Choosing & working with an outsourcing partner
CoolCat Digital has shared the following tips to companies looking to outsource their development projects, digital marketing and other business activities.
- Review their track record. Find out whether the outsourcing partner that you have in mind has the necessary experience and has worked on similar projects before. It’s also important to ask for references to make sure that their past clients have been happy with their service and the results.
- Check for financial stability. Your outsourcing partner needs to be financially secure to eliminate any potential risks when working with them. If an outsourcing partner is experiencing financial difficulties, it could affect the outcomes of your project and put your business at risk.
- Make sure you’re culturally compatible. It’s important to work with an outsourcing partner that is culturally compatible with your business and one that shares the same values. Being compatible will increase the success rate of your projects and campaigns.
- Discuss communication. Regular and clear communication is critical when working with an outsourcing partner so make sure that you know who will be your point of contact and that they will provide you with regular updates on the work being completed. Be clear on what you require from them and get it in writing to ensure a successful partnership.
Outsourcing has very clear benefits and is something that all businesses should consider if they’re looking for ways to expand.
