Consumer preferences are ever-changing and small business competitors crop up quickly. Companies must be able to adapt to the shifting needs of their market and offer the best solutions possible to achieve sustainable growth.
Outsource certain business operations to level the playing field and enjoy the same economies of scale and efficiency that large companies do. Local or overseas back-office operations free up key resources and help you focus on your company’s core competencies. Some of the functions you could consider delegating include: payroll processing, human resources, accounting, administration and marketing.
Aside from having credible outsourcing partners, your company also needs a competitive management structure to oversee them. For example, in my company, The Outsourced Accountant (TOA), we have what we call Australian Champions who are responsible for the offshore team’s training and management. The effective collaboration of your Australian Champions and offshore team is the key to the ultimate success of your business.
Need more convincing? Here are a few reasons to add outsourcing to your operational plan:
- Leverage Internal Resources More Effectively
Outsourcing creates greater efficiency for existing small business staff. Incorporate it as part of your daily operational plan. Automation makes everything run smoothly and cloud technology makes delivering results in real time possible. It’s a win-win situation for the business and the client.
- Access Experts
We all strive to be jack of all trades, but when it comes to accounting and money management, it is more practical to hire a professional. You don’t need to waste time micro-managing experts. They already have the skills. With some direction and outline of the strategy, they can make it happen. Worried about cultural or legal differences and subtleties? Don’t be. Most outsource companies have a training division for this exact purpose.
- Master Risk Management
When risks are not managed effectively, it can lead to loss or failure. Outsourcing certain business functions helps your organisation identify and reduce uncertainties because you share accountability with your outsourcing vendor. Consider it a second pair of eyes.
Having a partner exposes you to less instability because professional outsource organisations generally already have mitigation strategies in place for certain risk considerations.
- Increase Focus on Revenue-Generating Activities
Focus on what you are good at and on your core offering (not administration). In my case, I am passionate about helping clients. I don’t enjoy managing staff, but I make sure to be involved in the strategic direction of the business. Hiring an offshore team to do the back office processes lets me focus on core business functions that are client facing rather than worrying about day-to-day operations.
- Get Access to the Latest Technology
Technology constantly evolves and unless your company is IT-related, it’s hard to keep up with it. Through outsourcing, businesses can use advanced tools without investing in the time it takes to master them. All you have to do is hire IT specialists to be in charge of support and maintenance. Leverage the vendors’ access to improved technologies, and take advantage of the efficiency they provide.
- Remain Flexible and Scalable
In this increasingly competitive environment, a growing business needs to adjust to respond to changes in the market. These changes include having temporary functions, corporate restructuring and economic slumps. Outsourcing ensures flexibility in your operational plan, since you can change your service provider as required. It also improves your company’s capability to scale up or down when there is uncertainty in demand.
- Reduce Costs
Author and speaker John C. Maxwell said, “If something can be done 80 percent as well by someone else, delegate [it]!â€ The very essence of outsourcing is hiring someone who can do the same quality of work for a lower cost, compared to handling it in-house. Companies that outsource are able to save significantly because they don’t have to pay overhead costs.
Overall, outsourcing contributes to a small business’s efficiency, and the advantages go beyond money and time. Outsourcing boosts productivity, quality, business value and customer loyalty.
I don’t see outsourcing as a primarily cost-improvement strategy; I see it as a growth strategy. If you want to get ahead of the game and take your business to a whole new level, start outsourcing time-consuming tasks and help your organisation refocus on its core.