To stay ahead of the competition, in this evolving business environment, companies small to large are all seeking new strategies to minimize costs, be more efficient, and generate more revenue. Outsourcing has gained tremendous popularity as a powerful fit for the dynamic business landscape. Organizations are increasingly turning to outsourcing as a tool to optimize resource allocation and streamline their operations.
Outsourcing entails delegating certain business functions, projects, processes, or tasks to third-party service providers. This allows businesses to delegate (usually) non-core responsibilities to those who specialize in them, leverage latest technologies, and put greater effort and concentration on the business’s core competencies.
Why do organizations outsource? If you want to know all the major reasons behind it, this is the right place to start. Being one of the major virtual assistant service providers operating from India we have much experience with companies that outsource, enabling us to learn about their pain points and how outsourcing services help them.
Why do Companies Engage in Outsourcing: Key Reasons
1. Cost saving
The primary reason for outsourcing is reducing operating and labor costs. Businesses save the most by outsourcing to offshore service providers as it is ridiculously inexpensive yet meets the standards and often provides high-quality service.
Organizations often find that a large portion of their revenue is used up by hiring and training in-house employees. Outsourcing is an effective way to decrease the number of in-house employees (replacing them with in-expensive virtual employees is easy if you know how to hire a virtual assistant). You can replace any employee whose work does not involve being physically present at the office.
Take this for an example, suppose you are not satisfied with the IT support team you have gathered or are losing way too much money working with a local service provider. What you can do is you can outsource the function to an offshore company for a fraction of cost and gain specialized skill with years of proven experience and a good track record.
Many businesses make a mistake here. They prioritize the cost-cutting part and many times outsource to vendors whose sole USP is cheap service. More often than not they end up with waste of valuable resources.
Therefore, choosing who to partner with for outsourcing is as important as choosing to outsource in the first place.
2. Focus on core-business-tasks
One other good answer to why do companies choose to outsource work is to get their in-house team to focus on their core competencies.
Businesses often outsource work to companies like us so that they can focus their effort on the tasks that they specialize in. This would help them be more productive and efficient, increasing the quality of their work and not to mention the work-life balance.
Consider this scenario, you have considerable experience with email marketing, social media marketing, and Pay Per Click (PPC) advertising, and a little bit of SEO knowledge. Now you are thinking whether or not to handle the entire digital marketing yourself, when you have very little grip over web design and development, content creation, brand marketing, inbound marketing, SEO, SEM, and so on.
It is a smart idea to invest your time in something that your role has to prioritize, and outsource functions where you need help to a remote expert. Learn how to maximize productivity with our guide on the virtual assistant onboarding process.
3. Access to global talent pool
Getting access to a larger talent pool is also one of the crucial reasons why organizations outsource, especially post-great-resignation, when the war for talent is still goin on.
Not limiting your business to having only on-site employees lets you benefit from what the world has to offer. This is so important today because it allows organizations to widen the search and find the most suitable candidates for a position. This reduces the hiring cost, increases the diversity of perspectives (another plus point), and offers greater flexibility or adaptability to changing needs of skill set.
For example, DedicatedVA operates in India, and India is arguably one of the largest talent pools the world currently offers. Its larger talent pool allows virtual assistant service providers like us to handpick top talents and deploy them as required. If you outsource to a managed VA service provider, you can utilize the robust talent pool and gain an edge over competitors.
4. Flexibility and scalability
Being profitable is not a matter of eventuality for businesses whether it is a small or a large one. If you cannot respond to new changes and demands as fast as possible you are left behind and missing opportunities is not an option when the competition is this high.
To never miss an opportunity you need flexibility. The flexibility to scale with changing demands and adapt and grow with it, is the key to success to sustainability. However, it is easier said than done.
If your organization is not large enough to utilize and absorb the potential of an expansive growth then outsourcing is the only option. On the other hand, when you need to scale down, sustaining your in-house teams can be difficult, therefore outsourcing is a valid option that gives you enough flexibility to scale up or down in an instant without the costs attached.
5. Time-zone advantage and faster turnaround
Hiring Indian virtual assistants has several benefits (we’ve discussed them in detail on a different blog), and time zone advantages is one of them.
Outsourcing your tasks to a virtual team or an assistant in India means round-the-clock productivity. It allows you to optimize global responsiveness and project timelines. This can considerably help to improve customer satisfaction by contact availability and prompt solution to problems.
Time zone flexibility is also something we offer our clients. This means extended coverage for global clients. This minimizes idle periods and amps up productivity levels without taxing employees and affecting the quality of work.
Our clients also love the fact that working with companies from a different timezone often lets them enjoy a faster turnaround time. Companies like us do that by efficient resource allocation, maintaining parallel workflows, and removing inefficiencies.
Final thoughts
This was a brief discussion on why organizations do outsource. If you are a business owner you must be able to relate to the problems of running a business successfully in such a challenging time. Now you have a clearer understanding why businesses choose to outsource their tasks which they should have completed internally in ideal conditions.
You know that conditions are far from ideal and quality external help is a blessing. You are getting high-quality work completed by skilled and experienced professionals at a fraction of a cost. That’s the jist of why the trend of outsourcing is unstoppable in the foreseeable future.
If you want to join the businesses that continue to get profitable with external help contact a virtual assistant service provider you can rely on and start working!
