Why Outsourcing Can Save Your Business Money

why-outsourcing-can-save-your-business-money

The bottom line is always a big concern for small businesses.  The continual quest to cut costs and save money becomes a daunting task, especially when a company is already operating on bare bones.  As pocketbooks tighten, more and more businesses are turning to outsourcing to help reduce costs.  Let’s look at how outsourcing some of your business functions can help boost your bottom line. Here's why outsourcing can save you money:


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You only pay for the time you use

How many times do you find employees twiddling their thumbs or surfing the internet because they don’t have something to do? When you outsource a position, you only pay for the hours used. This alleviates the burden of having to pay a full-time employee for what sometimes amounts to “part-time” work.

You do not have to provide benefits

Outsourced labourers are not employees and therefore are not entitled to benefits and paid time off for illness or taking holiday. This can save your business money.


Recommended reading: The Ins and Outs of Business Process Outsourcing


An outside perspective can sometimes bring fresh ideas

You may bring in someone who can offer strategies and advice to help you further cut costs and/or increase productivity. For instance, an outsourced marketing executive might discover you are paying too much for website maintenance and offer a cost-saving alternative.

It can save investment spend

For example, you don't have to spend extra on developing infrastructure. When you outsource, then the company that provides the service can do that as part of their work requirement. 

No need for extra expensive office space

Office space can be expensive to pay for so outsourcing some of your work to freelancers who telecommute can help keep this cost down.

What can we outsource?

Once you are sold on the idea of outsourcing, you might be wondering what you can outsource. Below are some of the most common and popular functions to outsource:

1. Marketing

All functions of marketing can be outsourced, including social media, graphic design, advertising, copywriting and website development.

2. Finance 

There are both individuals and firms who can be hired at an affordable rate to handle any and all aspects of your finances, including accounts payable/receivable, bookkeeping and payroll.

3. Information Technology (IT)

Many businesses save money by outsourcing their IT services. This has become even more feasible with the introduction of cloud-based infrastructures.

4. Customer Service

Whether it’s in-bound inquiries or outbound you might consider a call service that offers easy and affordable options to outsource your customer service functions.


Recommended reading: 3 Key Tasks That Small Businesses Can Outsource Easily


Tips for approaching outsourcing

If you have never tried outsourcing, it can be a big step. Remember to thoroughly screen and interview any companies or individuals you are considering. Ask for references to talk to existing customers to make sure they deliver on time.

When you find the right fit, the returns can be impressive. 

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