When outsourcing transgresses national boundaries with the key advantage of being managed by companies and not freelancers across the globe- You name it “Offshoring with results”.
When you outsource your everyday key task you are delegating your company's business process to third parties or external agencies. Outsourcing will help you leverage your benefits ranging from low cost labour, improved quality to product and service innovation.
So did you ever wonder what is business outsourcing? Who does it? Well! It can be interpreted in many ways, but all conclude to the same answer - outsourcing is to provide a service for someone else. You can outsource your services to individuals termed as “freelancers” or to companies. Whichever path you select the end result might be small-scale outsourcing or niche outsourcing. You might have a one-time project that would require smaller contract, like getting a painter to paint your living room – That would be termed as “small scale outsourcing”. But if you have a massive project like building your website that would require hiring specialist team who will work within your budget and willing to match up to your expectations: That would be termed as “Niche Outsourcing”
Sitting on the fence?
Are you one of those who are worried about cost and quality assurance at the same time? We often find that deciding between working with freelancers and expert companies is a constant debate. Well you might bet me a million pounds and say “freelancers are cheaper”.
On the contrary, working with companies will provide you peace of mind by benefitting your business a team that has varied expertise to support your every project requirements. You might fear that working with companies might break your bank. Well! Not always.
Identifying companies who fits your bill and expectation is the key. Yes, we could agree that it might be time consuming, but worth the effort. The end result will guarantee you the lavishness of a massive team at the cost of a freelancer. Bargain, right?!
Freelancers Vs Companies
Can be cheaper as they do not have overhead cost
Negotiate on cost
Standard of work may be under par
Not always dependable
No structure or work format guaranteed
You get a multi-dimensional approach to your project
Professional and no hidden cost
Multiple tasks can be given
May have overhead charges
Have set prices: non- negotiable
Let’s turn our spotlight to Nike – one of the leading global retailers in footwear, apparel, equipment and accessories. What we should marvel is, they don’t make their own products but reap the financial benefit by saving time of manufacturing products in-house. They simply OUTSOURCE. Yes you heard me right – They outsource to various manufacturers in countries like India and China. Outsourcing has proven to contribute positively towards Nike’s smarter strategic outcome with reduction in financial, strategic and capital risks along with the benefits of industrial waste reduction, lower wages and the ability to focus on core competencies of manufacturing larger scale product within their competitive market. This is a perfect use of outsourcers as they can find companies across the globe who matches specific criteria for their manufacturing needs.
Brexit and Outsourcing. Friends or foes?
Well!! Brexit has been affecting our lives and business since last year. Political and financial uncertainties have been traumatising us so much so that atsome point we all will be thinking of outsourcing some of our services. But is it safe?
We conducted a poll via Twitter about Brexit and what kind of businesses it has affected. We have received a massive pool of 61% business people who expressed their worries of small businesses being affected compared to larger enterprises. 39% of our poll suggested that to some extent the larger business giants will also be affected. Overall, we might see massive strategic and financial challenges in years ahead if we depend on EU and UK market.
Recent business news illustrates business dilemmas not just within small business terrains. Giant tech firm like Microsoft have fallen victim to Brexit as well. Microsoft is having second thoughts about outsourcing abroad. Yeah you read that right, Microsoft! It was said that ‘The potential for huge import tariffs on goods meant it may have to reconsider future expansion in Britain’.
Pippa Musgrave – an expert in trading law compliance and marketing, mentioned that ‘small businesses predominantly operate in the UK domestic market compared to the larger enterprises that operate internationally’. If smaller businesses restrict themselves to the UK market only, there will be stunted growth. You as a business owner and decision maker of your company might have to break the shackles of geographical boundaries and increase in viability of trade option beyond UK and EU might promise improved growth and better financial stability. Therefore, outsourcing might be an obvious option to release those stresses posed by the current Brexit turmoil.
Now...Where to Outsource?
So we have reached a point where we might start thinking of building some life boats and putting on those life saver vests that will sustain us in this financial turmoil. So what, who and where is it?
Well, that’s a big question!
Imagine your business was working with other businesses outside the UK. What would your initial thoughts be? Thinking from a business point of view, by leaving the EU, UK businesses have taken a step backwards. Don’t you think so? Think of all the transactions and shipments that will have to be stopped because of the overhauling shipping cost? On the bright side, at least there will be tax reductions. Did that slip your mind? All of those irrelevant rules being dropped, that’s a good thing right? Maybe you did think of that, and that’s why we are where we are today.
However, if businesses aren’t part of the EU, how can they expect to actually move forward in terms of expansion and development? How can businesses outsource workers if they have a problem with exportation or travelling for work to Spain or Germany? Luckily for many, the largest outsourcers are normally from Australia, India or China, who are not part of the EU. Outsourcing can be a boom in disguise for those smarter small business owners who are seeking for uncapped growth with minimal investments. Unleash your expectation and work with companies who will provide you with great deals without any expensive border or trade regulation.
Hold on... grasp those last few tips to sharpen your outsourcing decision...
Draw a strategical important of the task in hand
Review expected outcomes
Estimate cost/budget involved
Visualise primary benefit you expect from outsourcing arrangements
Flexibility interim of time and resources
Measure risk involved to eliminate them in the future
Let’s Reap the Benefits:
Nothing in this life is guaranteed and outsourcing too comes with some of its own risk. However, with the right guidance and eye for detail you might save millions and enjoy the culture of large skilled professionals without the cost of managing your own in-house employees. According to Azim Premji, a renowned business author, “The important thing about outsourcing or global sourcing is that it becomes a very powerful tool to leverage talent, improve productivity and reduce work cycles”. Furthermore, if you can master the power tool of sourcing your business requirements, in long term you might eradicate the possibilities of inefficiency within your business functions. Act smart, act fast: Outsourcing can save your time, attention and resources that can be utilised in setting new goals and finding ways of achieving better business core competencies. Let’s take that one BIG DECISION that can take the hassle off your shoulders and let the word “outsourcing” create that wonder wand for you to get your desired results.