Businesses today have discovered the benefits of outsourcing their operations. Over a third of SMEs are currently outsourcing some of their internal operations.
What is business process outsourcing? It refers to outsourcing standard business operations to a party outside your business.
Business process outsourcing services allow you to trust essential operations to professionals. This allows you to focus on other essential aspects of running your start-up. It also helps small businesses increase employee efficiency.
Outsourcing is better than having a full-time in-house team, especially if you have limited resources. Below are four best things to outsource:
1. Accounting and Bookkeeping
Accounting is among the most outsourced business operations.
As a new business owner, you have more important matters to handle. Thus, outsourcing is a workable option. This is especially true if you consider the time it takes to learn accounting skills and compliance standards.
A business’s accounting department handles tasks such as:
- Managing financial reports
- Accounts receivables and payables
- Payroll processing
- Transactional coding
- Sales invoicing
- Budgeting, KPI trending, and financial forecasting
- Management reporting
- Vendor bill payment
You may choose to outsource the above tasks to a skilled accounting professional or a reputable accounting firm.
Whatever your choice is, a skilled accountant will help you manage all your accounting department. And you’ll get it at a lower price than hiring an in-house employee. This will help you save money and increase efficiency.
If you are a new business owner, setting up a fully functional manufacturing facility for your goods can be very expensive. For this reason, many sellers and retailers choose to outsource manufacturing processes. Outsourcing manufacturing for your business entails hiring a company or individuals outside your business to build or assemble a product.
You can hire a U.S based company to help you manufacture your goods instead of offshoring the process. According to research, America holds around 18% of the total market share in worldwide manufacturing.
The main reason behind companies choosing to outsource manufacturing is the cost of production. Using a third-party manufacturing company in areas with lower labor costs can significantly reduce your production cost and maximize your profits.
Before you consider outsourcing your manufacturing department, ensure you think about the below questions:
- Can outsourcing manufacturing accelerate my product launch?
- How will outsourcing benefit my business?
- Will my company be able to maintain control of how our products are being manufactured?
- How will outsourcing affect my budget?
- Will the manufacturing company produce good-quality products for my target consumers?
Outsourcing is more affordable than producing the products in-house. This gives you a competitive advantage over other companies in your industry. The greatest advantage of outsourcing is it gives you access to a manufacturing plant and the proper equipment without the need to make a financial investment.
3. Information Technology Management
IT is among the largest outsourcing field in the market today. IT outsourcing is the process of using a third-party service provider to handle all your company’s IT solutions. Such services include IT directing strategy, infrastructure management, and managing the IT service desk.
You can outsource a fully managed IT service where the IT agency takes over the full responsibility of running your IT infrastructure. On the other hand, you can also consider co-sourced IT management, where the third-party company offers support in certain areas to your in-house IT department.
You can outsource a fully managed IT service where an IT agency like celito.net takes over the full responsibility of running your IT infrastructure. On the other hand, you can also consider co-sourced IT management, where the third-party company offers support in certain areas to your in-house IT department.
Below are the most outsourced IT services by start-up companies today:
- Software and mobile application development
- Web hosting and development
- Cybersecurity protection- spam, viruses, and other online threats
- Data storage such as cloud computing
- Datacenter management
- Communication and networking
- IT helpdesk and technical support
- Infrastructure installation and support- software, hardware, and installation
There are many reasons companies choose to outsource IT services. It increases productivity, reduces cost, and gives you access to experienced IT professionals at almost half the price of owning an in-house IT department. According to research, over 45% of companies
outsource IT functions to save on cost.
Companies can hire one or more IT firms to handle different aspects of their IT services. For example, you could hire company X to handle your IT security while Company Y handles your network and communications infrastructure.
When you start an e-commerce business, the biggest headache is how to ship your goods to your customers. While shipping items from your house may be okay when you’re just starting, as your company grows, this will become quite challenging.
The more your company grows, the more pressure you will have to streamline your logistics and shipping services. You will have a larger customer base with high demand for your products. Thus, you will need a larger space or a warehouse to store the products.
If your business has been growing, you need efficient shipping services. It would be best if you considered outsource shipping services. You can hire a company such as Fulfilltopia to handle all your shipping services.
Outsourcing your shipping service will take the pressure off your shoulders as the third-party company will handle your packaging, shipping, and order fulfillment. It can also help reduce your order-fulfillment time and save your customers some money on shipping fees.
Before settling on any third-party shipping company, ensure you do the following:
- Evaluate and understand your company’s shipping needs
- Shop around for the best possible price and quality
- Ask potential partners as many questions as possible
- Confirm they are offering the services you require
- Ask about their pricing
Ensure you settle for a company that offers the services you need at an affordable price. Shipping to customers is not an easy process; however, outsourced shipping services can help make the process easier as they are more experienced.
Are You Ready to Consider Business Process Outsourcing Services?
Do you run a small business? Have you considered business process outsourcing services? Small business outsourcing is the best way to save money, improve efficiency and keep up with the high demand for your products and services.
Most businesses today are outsourcing one or more business procedures to save on cost and increase efficiency. If you haven’t considered it yet, you should.
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