Are you spending lots of money to grow your business? Do you need more staff but cannot afford to hire them? Are you still using the traditional ways when it comes to staffing? That is, asking your staff to come to the office every day and work there.
In today’s highly competitive marketplace, B2B companies must adopt cost-effective operations to stay ahead of the curve. Handling all business activities internally requires functional in-house teams, which are costly to build and maintain.
It can undercut your competitive advantage and wastes scarce financial resources. For whatever type of business or industry you are into, for instance, outsourced sales team can save you money and time.
What is Outsourcing?
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Outsourcing is a type of business practice that allows businesses to contract third parties to undertake some of their business services, activities, or functions. It means that the businesses hire third party companies with the resources and expertise to execute the task professionally, quickly, and cost-effectively.
Businesses can outsource specific functions or their entire hiring process to an external organization if they lack in-house expertise. Outsourcing is an excellent solution for B2B companies seeking to save cost while acquiring cutting-edge technologies.
You can outsource all sorts of your business’ tasks to onshore, offshore, nearshore providers. Onshore providers are organizations within your country, while nearshore providers are those in your neighboring countries.
Offshore providers are those teams from across the world. Businesses pursue these three types of outsourcing to save time and money.
What are the Cost-Benefits of Outsourcing?
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There are lots of benefits associated with outsourcing, but most businesses pursue this kind of business practice to enjoy tangible cost benefits. Here are ways how outsourcing to a team of experts can save you time and money:
1. Lower Overhead Costs
Building a functional team or staff from scratch is costly. The costs continue to increase due to recurring overheads like health benefits, wages, workers’ compensation, etc.
Outsourcing your entire hiring process to specialists can eliminate these burdening costs for your B2B enterprise and save you money.
2. Pay For Only What You Need
When you outsource certain business functions, you do not have to invest in technologies, infrastructure, and a skilled workforce. For instance, if your company needs a mobile app or data analytics, instead of hiring one, you outsource the project to an external developer.
You pay only for the service or software that you need. Outsourcing outside talent delivers what you need without adding extra costs. It is more cost-effective than maintaining internal teams.
3. Save Time
Time is money. Outsourcing complex and tedious processes to a team of skilled workers will save you time. Many professional providers leverage cutting-edge skills and technologies to accelerate and streamline business processes. An outsourced sales service is one.
Business owners can take advantage of these time savings to redirect their efforts towards high-growth areas or revenue-generating activities. When you save time, you make more money.
4. Acquire the Latest Technologies at Lower Costs
The cost of having a particular work done varies from one country to another, depending on the rates set by local staff. Businesses can outsource to specialized offshore providers to cut costs..
Specific niche providers are up to date with the latest trends in their industry. To access their skills and expertise, you have to outsource related functions to them.
5. Eliminate Employee Training Costs
In today’s tech-driven world, the digital ecosystem constantly evolves with new technologies and updates. Companies have to invest heavily in training and retraining their in-house teams to keep up with trends.
By outsourcing to a team with years of experience you can eliminate employee training costs. Specialized providers give companies access to a fully trained and highly qualified team of experts. They start working on your project instantly.
6. Scale to Meet Demand Without Additional Costs
Lucrative opportunities open up all the time. Traditionally, you need to hire an extra workforce to scale up your business operations to meet increased demand.
For example, by outsourcing inside sales, you can access the resources you need to scale up operations quickly without additional costs.
During the holidays in your country, you can outsource business operations to meet up with seasonal demand. You will not have to pay wages and other costs to more staff than you need between holidays.
7. Less Utility and Equipment Expenses
By outsourcing, you spend less money on work equipment and utility. For instance, a customer support or an outbound marketing team requires numerous tools for doing their jobs. These include:
- Laptops or desktops
- Auto dialing software
- Microphones and headsets
- VOIP or Voice Over Internet Protocol
- Software for automatic call distribution
- Call recording software
If your business has an in-house staff, you should provide the equipment to them. You can upgrade your business infrastructure to accommodate these equipment, such as constructing or renting a more spacious room for storing them.
However, more equipment means that your business will be consuming more energy, which leads to more expenses. Instead of making this hefty investment, you can outsource the work. The provider will provide the equipment or devices to get the job done.
8. Outsourcing Is Quicker
Hiring an agency or freelance worker takes hours rather than weeks or days to hire an employee. Instead of finding a budget, putting together a job description, hiring, and then training a new employee, you can outsource and hire a freelance marketer or an agency right away.
All you need is to set your business goals and needs clearly and do some research to find the right fit. Then, all it takes is a phone call, and the freelancer or agency gets right to work. This saves the money you would have spent on resources and all gets the work done faster.
How to Start?
First, write down all the gaps in your marketing that you would like filled. Check out some agencies and freelance networks, or ask other small businesses who they use. Initial calls, and a kickoff meeting online and you will be on your way. Start small, and as you gain more confidence in outsourcing, then you outsource more.
Companies can outsource sales force, hiring processes, marketing, and other business operations to specialized external teams. This process saves time and money by eliminating training costs, lowering overheads, and reducing time wastage.
You pay for only what you need and scale up without additional costs when you outsource a team. Other benefits of outsourcing include increased productivity, efficiency, product quality, and flexibility.