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June 2020

The value of outsourcing

Outsourcing is the process of shifting tasks or jobs to a third party company instead of taking care of them internally. Many people assume that companies choose to outsource tasks because they want to cut operating costs. Of course, cost cutting is one of the benefits of outsourcing to a third party. Companies who choose to outsource work don’t have to invest in recruiting and training new employees. Instead, they

can outsource the work to others who are already familiar with how to get the job done. Although cost is a major factor in many companies’ decisions to outsource, it’s far from the only one. Here are some of the lesser-known benefits of outsourcing to another company:


If your company is ready to launch a new project, it may take you weeks or months to secure the resources you need to get started. For example, you may have to recruit and onboard a number of new employees in order to have the manpower you need to launch the project. However, outsourcing companies typically have available resources to take on new projects as they arise. If you want to launch a new project without the wait, consider outsourcing it to a company that’s ready to hit the ground running.


Many companies choose to outsource tasks not to save money, but to save brainpower. What does that mean? Consider the Human Resources department. HR employees spend about half of their days working on non-strategic tasks that keep the business operating such as maintaining records. If HR employees didn’t have these tasks, they would be able to use these countless hours on more important matters, such as coming up with strategies to engage employees and improve job satisfaction. Outsourcing the non-strategic HR tasks would allow HR employees to use their brainpower to help the company grow instead of using it to check another non-strategic task off of their to-do lists.

What tasks should you outsource and which should you keep in-house? Ultimately, the choice is yours. But in general, it’s recommended that you outsource tasks that are low value, which means they aren’t as important as other tasks, highly repetitive, such as data entry, or highly specialized, such as graphic design or website development. Use this as a guide to determine what tasks you should outsource to free up your employees’ time so they can focus on more important aspects of the business.


Contrary to popular belief, outsourcing is not only for large corporations. Any company can outsource tasks to an- other company, and in fact, it may be beneficial for small companies to do so. Why? Large companies have plenty of resources at their disposal, but small companies don’t have the same luxury. A small company may not be able to hire more people in order to bring in fresh talent or support a new client that’s coming aboard. But, they can choose to outsource work to another company instead of trying to handle the work internally. This allows small companies to compete with large companies and offer potential clients the same resources, expertise, and services that a large company would.


Outsourcing also gives companies the opportunity to hire people with unique skillsets. For example, a small, growing company may realize that they have a need for IT professionals, but no one employed with the company has the necessary skills to fill the role. What do you do? One option would be to outsource the IT position to an individual or company that can fill the skills gap in your organization. If you ever feel that your employees are lacking certain skills that are necessary to help your business survive and grow, it’s important to consider outsourcing.


When you choose to outsource certain tasks, you are forming somewhat of a partnership with the individual or com- pany that you choose to work with. Through this partnership, you may gain access to certain technology that can improve your business. For example, companies that outsource their HR activities may work with a company that has innovative payroll and benefits software. Having access to this software may make it easier for your employees to access information, and for you to maintain your company’s records.


Outsourcing allows you to share the risk of a business investment or new endeavor with a partner company. If you choose the right company, they should have the experience to guide your decisions and help you manage and avoid risk. For example, if you outsource your accounting needs, an experienced accountant should know how to handle your company’s taxes and avoid getting into trouble with the IRS, which is one of the risks associated with filing taxes.


If you choose to outsource some of your business activities, it’s important to thoroughly vet the company or individual you choose to work with. This is always a crucial part of outsourcing, but it becomes even more important when you are outsourcing work to another country. In this case, you will need to ensure the team you work with is reliable, familiar with the work you are outsourcing, and able to get the job done despite time differences and any cultural barriers that may exist.

You should also provide the team with a clear set of policies and guidelines that must be followed. For example, if you are outsourcing your customer service department, each employee should know exactly how they are supposed to answer customer questions and who they should contact with any issues that need to be escalated. Interested in outsourcing parts of your HR department? Schedule a demo with emphasis HR to learn how we can help you grow your business! emphasishr.com