Outsourcing specific jobs and tasks is essential for many businesses to succeed. In the past 15 years the revenue generated from the global outsourcing market has more than doubled, with it amounting to 104.6 billion US dollars in 2014.
This number is expected by many to continue to increase with more freelancers, contractors and temporary workers making up the global workforce. If you’ve just set up a brand new start-up or are looking into ways to become a more successful business then consider outsourcing as it can save your company money due to many different reasons.
It’s likely your company focuses on one particular area and small businesses especially don’t always have the resources to be an expert in everything necessary to be successful. It can take a lot of time to recruit specialists in IT, HR, accounting and other areas as your business expands and you might not get the best people first time. Instead by outsourcing these tasks it saves time and ensures highly skilled workers are assigned these tasks.
Outsourcing is also a more cost-effective method than hiring lots of specialists to complete particular jobs. It offers other financial advantages such as tax breaks by taking advantage of lower corporate tax rates abroad. Using workers from other countries can result in a lower cost as many have poorer wages, though it will depend how ethical you and your business feel about this. Many countries also have lower regulatory costs, with no need to pay unemployment insurance, social security and the like making it cheaper.
The global economic market is incredibly volatile at the moment. New and small companies are at the greatest risk so having the ability to grow and downsize rapidly is useful. Hiring and firing takes up a lot of time and money that could be better spent in other areas of your business. Outsourcing allows companies to change based on rising and falling demand appropriately.
Most outside providers are skilled at risk management in their sector, such as TNT in delivering packages safely and securely for businesses. For companies launching new products or services it is very important that people who can minimise all risks are involved to avoid a huge expense in the event of a disaster. Along with being flexible, outsourcing allows your company to increase or decrease workers on a project to avoid financial ruin a lot quicker than having permanent employees.