In a world growing smaller, with fast evolving technology, outsourcing can make sense for a company no matter its size. More and more organisations are turning to countries like Vietnam to outsource non-core function, services and processes.
Outsourcing is the practice of using outside organisations to do the work rather than hiring full-time, part-time or casual staff. It is a strategic move to free up capital and encourage organisational growth, as well as getting top quality outcomes at cost-effective prices.
When thinking about reorganising or downsizing, instead of letting staff go, organisations can move entire services or departments, and their workers’ employment, to an outsourcing provider. This is a win-win situation with minimal disruption to the business.
There are entire industries with the sole purpose to service organisational business needs. This is an era where businesses do not have to take on the burden of permanent staff to get the work done. Outsourcing provides business solutions and delivers top quality work.
Here are the top six benefits to outsourcing:
Focus on the core business
All businesses have limitations – limited resources, time, money and staff. During times of rapid growth, support operations expand just as rapidly. By outsourcing business functions such as accounting, human resources and IT, it frees up time better spent focused on building the core business.
Trade lower operational costs for better skill-sets
Outsourcing can impact your bottom line with significant reduction in labour costs. When you do not have the people with the right skills, tap into an experienced outsourcing company to get the expertise you need for the job. Hiring people for short-term work can be expensive to train them to your operational standards. If they do not work out, you have to start again. An outsourcing company gives you the people you need quicker and, typically, for less cost. They also take on all risks associated with staff resources. Just because outsourcing can cost less, does not mean the quality of work suffers. Low cost does not equal low quality work.
You may not have the right people for ad-hoc business functions which may lead to poor results and outcomes. Trying to cope in-house means the cost of doing business goes up over the long term and these costs eventually pass on to customers, which puts your price competitiveness a risk. It makes sense to outsource non-core business functions to give you a competitive edge.
Access to a flexible, skilled workforce
With the unpredictability of the global market, organisations need to be as agile as possible. Downsizing or increasing workforce’s quickly when taking on more projects is key to project success. This is difficult with a full-time, permanent workforce and processes to follow to hire and fire staff. Recruiting staff is time consuming and costly. Outsourcing providers remove that burden giving organisations the flexibility they need when they need it while removing the expense of removing and training staff and giving you instant access to the skilled workers you need.
Use time zone differences to your advantage
Use the time zone between your country and the location of your outsourcing provider to get work done while closed for the day. By the time you get to work in the morning, the work should be already delivered. This gives your business the advantage of 24 hour operations.
Reduce organisational risks
Fluctuating market conditions, government regulations, competitive and financial conditions, as well as rapidly changing technology are daily risks all businesses face. Outsourcing function, services and business processes means the provider takes on and manages the risks on your behalf. They have the expertise to control and avoid the risks relevant to their industry.
Since 2000, outsourcing has been a specialist area of NashTech’s business. Talk to our experts about how outsourcing function, services and / or business process can help grow your business today.
The key to success really is in choosing the right service provider.