In the current climate, where businesses are continually searching for strategies to manage costs while maintaining competitiveness, outsourcing has become a core business function. Even for the budding and large companies, outsourcing is a powerful survival tool due to its numerous advantages, including cost control, reduced labor cost, and increased business efficiencies.
Statistics have proved that approximately 300,000 jobs are outsourced every year in the US. As a small business owner, you may be cautious when diving into the outsourcing domain. But what can you outsource?
One of the business areas you should consider outsourcing is your IT department. Doing so will save you a lot of costs from:
- Having to recruit extra employees
- The need to increase the hours for your staff to finish jobs
- Saving costs in upgrading your systems with new software after each advancement.
Although your team can handle your current IT solutions, will they be able to do so in the future? Modern IT infrastructure is becoming complex each passing day, from servers to database management services to cryptography; your business may require a whole list of specialists to keep your business systems running without interruption. Seeking managed services in Jacksonville can save you money while providing you with stellar IT solutions.
Accounting is a fundamental business function you should consider outsourcing. Entrepreneurs who take charge of their small businesses’ bookkeeping needs consider it the most tedious aspect of maintaining the business. 40% of small business owners find accounting and tax preparation as the most stressful part of their management function. Meanwhile, recruiting a full-time accountant is expensive, with an annual median salary of $71,550, while the lowest-earning accounts staff earns at least $55,900.
3. Human Resources
Outsourcing your business’ HR means you can save time to focus on developing your small business. For most small businesses, investing time, cash, and energy in the human resource may appear inefficient. Modest assignments like finance and hours training staff eat into the time you could spend promoting business development.
Per the tax laws and guidelines, payroll may demand a real measure of time and effort to avoid errors, which can be expensive for your small business. There is significantly more to managing employee payroll than computing staff hours and pay-outs. A single mistake can trigger tax assessments and reviews, which may cost your business thousands of dollars. Therefore, it is essential to hire staff outside your business to offer specific services and products usually done by full-time employees. Strategically outsourcing employees won’t just save cost but provide your business with:
- Skilled expertise
- Decreased overheads
- Increased efficiency
- Reduced labor turnovers
For example, industries like project management, research analyst, and writing are considered best for freelancing and contracting.
Your business can earn good leads and enhance its content customer relations with an effective marketing strategy. If you don’t have the financial muscle to recruit an in-house marketing expert, avoid investing your time and resources into creating content, knowing very well it is far beyond your expertise. The smart approach is to outsource.
While you may have to spend some funds when outsourcing, it can help develop your business and save money in the long run. Regardless of your business’ current size, you can still outsource due to freelancers’ and temporary workers’ availability, all thanks to technological advancements.