What Services Do Companies Outsource?
Outsourcing is a hot topic in business today. It’s estimated that 60% of all businesses outsource some aspect of their business. But what services are they outsourcing?
Companies outsourcing their services
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- Call center services
- Customer service
- IT support services
- Advertising and marketing
If you’re operating on a shoestring budget, outsourcing services might be the answer you need to launch your business without having to fork out for expensive employee salaries and benefits packages. But if you’re just starting out, which services do companies outsource and why? Read on for a list of popular outsourced services.
Companies outsource for a variety of reasons. It may be due to lack of resources, lack of time, lack of expertise, or the need to focus on their core competencies. Regardless of the reason, many companies can benefit from outsourcing and it can be a great way to free up resources and time for other things.
Some companies outsource to reduce the cost of doing business since they’re able to access specialized expertise at a much lower price. Other companies outsource simply because they don’t have the resources in-house to do it themselves.
Here are some of the services that companies outsource:
1. Accounting and bookkeeping
Many small businesses do not have the manpower or expertise to keep up with their accounting. Hiring qualified accountants is expensive. Instead, they can outsource accounting and bookkeeping services to a third party and save themselves the time and money.
2. Customer service
Customer service is an ideal area for outsourcing. Companies can outsource their customer service to a third-party company and save money as well as ensure better quality.
3. Call center services
Companies have found that they can take advantage of call center outsourcing to their benefit. The quality received when hiring an outsource provider will far surpass in-house call center services.
4. Advertising and marketing
Marketing is another area that companies outsource. They can save time, money, and resources while boosting their advertising and marketing efforts.
5. Data entry
Many companies use an outsource provider for data entry services due to a lack of in-house expertise. An outsource provider will have trained professionals who can handle sensitive company data and ensure that is handled in a professional manner. Data
6. Human Resources (HR)
Another area where companies outsource is in hiring staff. They can outsource HR services to help ease the burden of finding, interviewing, and hiring new staff members.
7. Web design and development
Companies rely on outsourcing to provide them with web designing services. Many want their website to reflect who they are and outsourcing allows them to get a professionally done website for a fraction of the price.
8. IT support services
Another service that companies outsource commonly is IT support. This includes services such as server support, help-desk support, and much more.
How To Decide What to Outsource
With so many options, companies are often overwhelmed with what services to outsource. You should first gather your company’s requirements and then decide what service to outsource. When deciding, ask yourself questions such as:
– What are my company’s needs?
– Am I able to do this in-house?
– What are the benefits of outsourcing over doing it in-house?
– What are the costs of doing it myself vs. outsourcing?
If you’re not able to do something yourself, you can always outsource it. But make sure that you’re able to answer your questions first before outsourcing any service or task.
Common Missteps When Outsourcing and How to Avoid Them
– Not defining your requirements and expectations
Before you hand over a project to an outsource provider, make sure that you’ve defined what you expect from them and list down the requirements. Do not leave any room for ambiguity.
– Not considering quality and experience
If you’re hiring someone to work for you, they should be qualified and experienced enough to do the job. You shouldn’t end up hiring someone who lacks these qualities.
– Not managing the relationship
A lot of businesses hire an outsource provider and then fail to manage the relationship. They should make sure that they communicate with their provider and that they maintain a good relationship.
– Handing over too many tasks
You should choose to outsource only the tasks that you’re unable to do yourself. If you outsource too many tasks and your business grows, your outsource provider might become overwhelmed and stop working for you.
– Not setting a clear path to growth
If your business grows and your outsource provider isn’t able to handle the added workload, they will leave. You should make sure that they are able to handle the extra workload before you hire them.
– Underpaying for your project
If you’re outsourcing, you should be able to pay your provider what is fair for them. If you underpay them, they will not be willing to take up more tasks for you.
Final Thoughts
Outsourcing is a great way to get your company’s tasks done without having to worry about in-house resources. It saves time and money, while also providing your company with the resources it needs to succeed.
However, you should always keep in mind that outsourcing isn’t without its risks. You should make sure to set your requirements clearly, manage the relationship properly, and pay your provider fairly.
If you keep these practices in mind, you’ll be able to hire the right provider and carry out your company’s tasks successfully.
