• justin wong

Why Outsource?

Updated: May 30, 2019




"Do what you do best and outsource the rest" was memorable advice given by the legendary business consultant Peter Drucker to everyone who would listen in the early 1990s. The catchphrase has caught on and since then parented many rip-off slogans. But what makes outsourcing so advantageous to companies that such an iconic person would endorse it in such a way?


Besides the fact that it makes sense from a practical business standpoint, outsourcing clearly has many benefits. The most obvious of these is that it cuts costs - and which business doesn't want that?


LOWER COSTS


The lower costs in outsourcing comes from many factors - the first of them being the reduced cost of labour. Many outsourcing companies are based in non-Western countries, where wages are generally lower, most especially with the exchange rate factored in to the benefit of hiring companies that are based in Western countries.


Hiring companies also save on costs by avoiding having to train employees for specific job roles that can be outsourced, and by not having to provide benefits for the workers of the service provider, as these tasks are all handled by the company being hired.


MORE EXPERTISE


Besides cutting costs, time is also saved as the resources that could have gone to training employees and looking for people who suit the job description while fitting in with the company can be reallocated elsewhere as suits the company's purposes. This way, the hiring company gets to concentrate on its growth and development instead of inconsequential matters that impede its running.


With outsourcing, you're also guaranteed a consistent quality of work as the companies hired to perform specific tasks often specialise in them. This streamlines work and allows it to be finished within deadlines, and to be of a high caliber at the same time.


With outsourcing companies based in a different time zone, additionally, a business owner is also extending their business' work day, making full use of the 24 hours in a day available to them in order to focus on their strengths. This creates the situation in which the hiring company is able to complete difficult and precarious tasks quickly, as work that has not been completed is transferred to the hired company.


Flexibility is granted to the hiring company as they are able to pay for services they need as and when they are required and only then. As specialised staff will be readily available at lower cost to the company, this gives the business a budget that can readily be worked with and changed to suit the business' needs at a much reduced risk.


In a booming industry where a certain company may have many competitors, the decision to outsource may bring about a competitive edge - such a company may be able to leapfrog over its competitors quickly through the sheer power of having outsourced certain projects or tasks.


Although the practice does raise its own concerns (in the US alone it is said that if every job that was outsourced was insourced instead, it could end unemployment in the country - a reductive statement that does not take into account whether the unemployed Americans are qualified for the aforementioned outsourced jobs), it definitely has its benefits and when employed ethically, can give you great returns on your investment in it.


Outsourcing saves your time and money, and allows you to focus your business' capabilities on its strengths while defending its weaknesses. The question seems to be more: why not outsource?


Contact us today at samuraiforceofficial@gmail.com to see if outsourcing will work for you, how much it could potentially save you, and to find out more about how it all works.



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