Advantages of Outsourcing
Outsourcing can mean delegating, assigning or contracting out a job or task to a third party at an agreed upon rate. If you have a business, outsourcing different components of your operations can greatly benefits your company. When you outsource, you save money on hiring employees and rental of space. Hiring workers is expensive especially for jobs that require specialized knowledge.
When you hire someone, you will have to include fringe benefits to entice the employees to work for you. If you are running a brick and mortar company, you will still need to hire. But only on jobs that require human interactions like customer service, for example.
But, there are some other great benefits of outsourcing that go beyond money. One of the advantages of outsourcing or employing outside firms or individuals to take care of some of your work is that it will release you from some mundane and boring jobs. You free up time which is best spent on planning your business and working out strategies to make it grow. It is time well spent compared to doing work that doesn't bring more profits but are important in the smooth running of your company.
Another one of the advantages of outsourcing is it saves you time form learning something that you have not much knowledge of. There is always someone who knows what you don't and is willing to get the job done at an agreed price.
Examples of jobs that you can outsource are those like writing reports, data entry, data analysis, research, accounting, software development, designs and payroll. Hiring or contracting a third party accountant for example will ease you the burden of preparing financial statements, payroll, and tax returns and so on.
Another outsourcing advantage is that you can employ anyone locally or from foreign countries. You don't have to meet up face to face for an interview and yet you can still get the job done as per your expectations. And the cost is cheaper even though you are hiring someone professional or asking someone to do a job that requires skill. This is because if you hire a local, you pay her by the hour or an assignment. If you hire someone from a developing country, the minimum wage is lower than developed countries.
When you outsource, in a way you are making a positive contribution to the economy. There are people who have lost their jobs and are unemployed and would love the idea of working from home as an outsourcer. There are also those, like stay at home moms, who are looking to earn some income.
Although there are many benefits, there are also a few disadvantages of outsourcing as well. One of them is you are denying jobs to those who need them. Poor quality of work is also something that you might have to face with. Another outsourcing risk that may frustrate you is the response time to get a job done.
But you can reduce the risks of outsourcing by avoiding some common outsourcing mistakes. One of them is to state your expectations clearly. Tell the person whom you are hiring exactly what you want and when you want it completed. And even though she is not your direct employee, you must check on her progress and keep your communication open.
And before you hire someone either local or outside, ask to see some of her previous work. This can be done via email or Skype. Once you are happy with what you see, you must agree upon the rate and method of payment. To avoid unnecessary problems, stick to your agreement and pay on time.
But outsourcing isn't only for business owners. You too can or have been outsourcing some of your chores like house cleaning or maintaining your garden. Now that you know the advantages of outsourcing, take a look at what you are doing and decide on what are the things that you can pay someone else to do. Make use of that time for something else that benefits you.