There are many different types of outsourcing for businesses. From administrative work to sales outsourcing, the sky’s the limit when it comes to hiring a remote team. Let’s look at what business outsourcing is, the types of outsourcing for businesses, and some of the top benefits of outsourcing.
What is Business Outsourcing?
Outsourcing is the practice of hiring a third party for services that are traditionally done in-house. Companies typically adopt this approach as a cost-reduction measure, since it lets them get around the cost of personnel benefits, training, office space, and equipment.
As a testament to its effectiveness, a number of startups now considered tech giants, such as Google, Slack, and GitHub, invested in outsourcing services when they were starting out. Outsourcing IT services, like web and app development, brought significant revenue to these companies.
On top of that, more than a third of small businesses were already outsourcing services in 2019. Today, 45% of companies plan to find the talent and skills they need through outsourcing.
The Benefits of Outsourcing for Businesses
Does outsourcing add more value to your business than creating an in-house team? Below are some of the main benefits of outsourcing and why businesses of various sizes turn to third parties for their staffing needs.
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Cost Reduction
Cost is one of the main reasons why organizations prefer to outsource various services and responsibilities. Training and hiring can be very expensive, and even more so when employees fall short of the role’s expectations.
Outsourcing allows you to allocate your resources where you need them most by guaranteeing experienced and highly qualified workers requiring little to no training. Most companies also get offshore outsourcing to take advantage of lower labor costs in emerging markets.
There is a significant difference in pay between developed and developing countries (i.e., an employer may have considerably lower costs in outsourcing services from developing countries compared to getting them done locally).
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Better Company Focus
Another benefit of outsourcing is an increase in company focus. Since it takes ad hoc responsibilities off your team’s hands, you can focus on your respective specializations.
For instance, customer service can eat up the time and attention other employees would normally spend on their respective roles. By outsourcing, you can provide customers with high-quality and consistent service, while also allowing your team to operate more efficiently.
In line with the previous point, there’s no need to spend on recruitment and training, consequently decreasing the need for a lot of resources as well. As these tasks are fulfilled with minimal or reduced cost, companies can now focus on creating strategies to ramp up business.
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Broader Access To Resources
As small businesses begin to scale up, demands start to increase as well. Outsourcing services grant companies access to high-quality talent, innovation, and thought leadership worldwide.
As a matter of fact, doing so allows them to select the outsourcing partner best suited to their needs. Companies can also leverage the expertise of these third parties by having them use their own resources.
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Types of Outsourcing Tasks
Outsourcing business services allow you to get more done while also keeping costs under control, increasing efficiency, and recruiting top talent as well. Here are four types of outsourcing tasks to get you started:
Administrative Work
Making appointments, organizing office logistics, preparing trips, and answering phone calls are examples of administrative tasks that executives and entrepreneurs may not have time to do. That said, neglecting these seemingly menial responsibilities can stunt the business’ growth. Executives can get around this by delegating business tasks to a virtual assistant.
Bookkeeping
Things like bookkeeping, payroll processing, and tax accounting typically take lots of time but are somewhat repeatable tasks, making them perfect for outsourcing. Outsourcing bookkeeping to reliable professionals will save you a lot of time and money in the long run.
Customer Service
Having a large volume of clients and customers is a good indicator of a business’s growth. However, a startup may not have the resources to handle too many coming in too quickly.
To tackle this concern, customer service outsourcing is an effective solution where you may delegate these responsibilities to a third party. With a bit of training in processes and protocols, outsourced CS reps can handle customers as well as any in-house team.
Sales
Driving sales means boosting revenue for your business. However, there are a lot of things to be done to close deals. This includes creating an ideal customer profile, doing market research, generating leads, processing and qualifying them, and many more!
Close more deals by outsourcing the administrative side of your sales process to a virtual assistant. They will handle appointment setting, cold calling, data scrubbing, and lead generation, among other things. This way, your sales team can focus on completing a business negotiation or transaction.
Business Outsourcing Services Through Magic
Business outsourcing can provide several advantages when it comes to scaling up your business. Magic virtual assistants are experts in what they do, both in attitude and technical skills. Whether working for startups or for large enterprises, they have a proven track record and customer success stories to back them up.
Below are some of what a Magic Virtual Assistant can do for your business:
- Administrative Virtual Assistant – research, transcription, email management, project documentation
- Sales – SDR, appointment setting, lead generation, business development services
- Customer Service – voice and non-voice support, customer query management
- Bookkeeping – data entry, financial reporting, tax filing, invoicing, refund processing
Growing your business is a tremendous undertaking. Outsourcing is one way to approach the task effectively and economically. There are many benefits of outsourcing, and it’s one of the most effective resources you can utilize to give your business a competitive edge while also reducing costs and increasing efficiency.
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