In today’s market, outsourcing is becoming more and more popular amongst small-medium sized businesses. Even with large multinational companies such as Apple, who have their screens supplied by Samsung, there is a growing popularity in recognising and seeking expertise outside of their own business. Why is this exactly?
Strategic partnerships can expand your reach and help catalyse your innovation. By partnering with other businesses to achieve mutual aims, you can achieve better results faster and at less of your expense than if you tried to achieve these alone. Even if you are competing for market share with another business, there are still benefits for you both to collaborate to make the end result much more successful for you both.
Collaborating with other businesses increases your pool of knowledge, expertise, and resources that you are able to access and create a better product/service and reach a larger client and consumer base.
Here are 12 key reasons why outsourcing to other businesses can benefit your business:
- Ability to focus on the important core business activities
Outsourcing can free up your business to focus on its core processes and strengths, allowing staff to concentrate on their main tasks and on the future strategy of the business.
2. Increased efficiency
Choosing an outsourcing company that specialises in a process that you need doing, but is not a core skill of your business, can help you achieve a more productive, efficient service, often of greater quality and at a faster speed.
3. Reduced and more controlled costs
Outsourcing your piecemeal processes is nearly always going to be cheaper than hiring permanent full-time staff. Lower labour and operations costs, as well as lower overhead expenses achieved by outsourcing can help you release capital for investment in other areas of your business.
4. Increased reach
Outsourcing can give you access to capabilities and facilities otherwise not accessible or affordable. Sharing clients and contacts with partnering businesses can increase your levels of exposure to new leads.
5. Competitive advantage
Outsourcing can help you leverage knowledge and skills along with your complete supply chain. Teaming up with other businesses that can help you improve your process will essentially give you a “piggy-back” to an improved competitive advantage.
Your core team may be great at a few things, but nobody is perfect at everything. Therefore, by outsourcing some of your piecemeal tasks onto specialists, companies are often able to substantially improve performance by drawing on the niche skills of experts in certain fields. Access to skilled resources means that businesses can gain the right talent, assuring a higher quality of the outsourced tasks.
7. Business flexibility and agility
Outsourcing allows your business to adapt to changing market conditions and challenges, while providing cost savings and service level improvements. When your business has outsourced partners, it is able to use their expertise and insight to help in the decision-making processes needed to adapt to evolving markets and to ensure you make the right moves.
8. Staff flexibility
If your business has operations with cyclical or seasonal demands that require bringing in extra staff, outsourcing provides additional resources when you need them, and you can release them when they are no longer required.
9. Save time and get things done faster
Businesses tend to outsource work because it will get done faster. If you are working with a limited number of staff members, you can get things done a whole lot faster by passing time-consuming tasks onto specialists. Outsourcing non-core activities, such as back-office operations or administration, frees up your resources helping you to focus on the core functions of the business, rather than supporting ones.
10. Sharing and reducing risk
One of the most important factors in any project is risk assessment and analysis. By outsourcing certain campaigns or processes onto experts in their respective fields, you will benefit from their enhanced ability to plan and mitigate potential risks. By sharing risk with other companies, you remove risk for your own.
11. Working around the clock
One major benefit of outsourcing digital work to other businesses, is that they may have different working hours to your own. Even if this is a logistic hurdle to tackle initially, once tackled, it will effectively mean work is being done whilst you’re relaxing at home!
12. Peace of mind
Choosing to outsource with a proven reliable individual or business should give you peace of mind that tasks are being handled expertly and efficiently. You can have peace of mind knowing that operations are going smoothy without you or your employees having to lift a finger!
The goal of all businesses is to stay relevant and reach its set goals. Having outsourced business partners means you are no longer in isolation. You will have access to a larger pool of knowledge, innovation, and funds. The correct strategic business partnership will mitigate your weaknesses and nourish your strengths. When we look at the likes of Google, Apple, and other multinational corporations, there are reasons why they see outsourcing as a way of expanding their business growth. There is absolutely no excuse as to why your business cannot follow suit and achieve more than it is capable of achieving alone.