Outsourcing: Why Companies Should Trust External Resources?
Large and crowded offices in the past are replaced by common offices where small teams work today. Because, companies prefer to reduce their costs and increase their work efficiency with outsourcing.
We have prepared a guide for you about outsourcing from A to Z. You can find answers to the following questions in this guide.
External resources can actually be described as a company’s lifeline. Outsourcing means that a firm or individual receives help and services from experts in matters other than their own areas of expertise. Thanks to outsourcing, companies can focus on their area of expertise and get the services they need from people who are experts in their field.
Not long ago, until 20-25 years ago, the company was expected to do all the work within their own structure and to accomplish this was considered as an indicator of corporate power.
Nowadays, the needs of firms are changing day by day and their business items are increasing in the globalizing and digitalizing business world. This forces companies to recruit new staff and specialize in different fields. Exactly at this point, outsourcing appears before companies like a lifeline. Nowadays, companies and individual employees come together and cooperate more in line with their needs.
The advantages of outsourcing are countless. Information about these advantages will be available in the following section.
A construction company can perform the translation of a business agreement which is made in a different country and advertising works required for the promotion of new restaurant products by using external resources. As seen, outsourcing covers a wide range of business.
Even the largest companies in the world, from automotive to informatics, from food to textile, deliver their services and products to their users by using external resources.
Here are the benefits of outsourcing for a company!
1. Cost Savings
Today, companies and businesses need to be able to operate in many areas at the same time. The fact that they plan and implement this within their own structure brings with them a serious workload as well as manpower and labor cost. Here outsourcing creates opportunities for companies to get rid of these costs. Moreover, the quality of the service is also carried to the highest level.
Let us explain this change with an example. Suppose you have a shop on ready-made clothing. You have decided to open a website to keep up with the Internet age and to bring your products to the digital world users, and also to promote publicity through social media accounts. At this point, different work items such as the installation of your website, adding the necessary information, preparing the designs, determining social media strategies, conducting advertising activities, preparing campaign-oriented visuals and videos will emerge. As a shop owner, you will need to hire more than one person for all these services and pay fees for the use of many tools. We ask you to imagine the cost of all this. Moreover, in addition to this cost, you will have to take on the responsibility of organizing all these works. In addition to the cost, you will need to measure the expertise and experience of the people you hire and also question the efficiency of the indirect work.
Why not go to a digital marketing agency instead? Why to choose the hard way while there’s a way of achieving a much more efficient result with much lower costs?
2. Leave the Job to the Experts
”Not everyone can do every job“
This may sound like a hard phrase, but it is quite justified. Every business and operation has an expert and this level of expertise reveals the quality of the work done. For this reason, it will be a good decision to work with names and firms specialized in this field in order to benefit from a service that is not in your structure. In this way, you can focus on your own professional area and continue to work with the confidence of leaving your service to the professional hands.
Outsourcing also enables companies to benefit from services at more international levels. A medium-sized textile company may not be able to follow the advertising campaign trends in the world at any time. This leaves them even more behind their rivals. For an advertising company, it is not possible to not to be aware of these trends.
3. You Can Have Access to Different Resources
Some of the services provided by external agents would provide access to other resources. It is quite obvious that the resources of an automotive company will not be the same with the possibilities of a digital marketing agency.
4. There is Always a Need for an External Eye
Often taking part in a job may cause some kind of blindness. Preventing this blindness and opening the door for different sights are always necessary. The consultancy services that you will receive in different areas and the new perspectives that you will gain will reinforce your success as a company.
5. You May Have a More Powerful Image in Your Area of Expertise
Getting rid of excess workload will enable you to perform more effective work in your area. Instead of creating internal resources to get a certain service, you can strengthen your existing resources. This will give you a great opportunity to strengthen your brand image.
6. Removes the Costs for Creating Internal Resources
Creating a new internal resource is always a burden for companies in terms of cost, time and labor. For this reason, instead of creating internal resources for a certain service within companies, orientation towards external resources eliminates a serious cost.
After listing all these advantages, we think you’ve decided to use outsourcing. Then it’s time to take a look at what to do before outsourcing.
A company that decides on outsourcing should make some definitions in itself in order to use these resources efficiently.
So What Are These Steps?
1. Determine the needs of your company.
2. Prepare a preliminary studyreport on which of these needs you can meet with your internal resources.
3.Classify services for emerging outsourcing needs in the report.
4. For these needs, determine which units will communicate with external sources.
5. Contact external resources for needs and receive offers.
Of course the final step will be to decide. After that, only a successful resource utilization process management remains.
What should be done to ensure successful outsourcing management is a quite important question. A research made by “The Outsourcing Insitute”gives us the answer to this question. 10 important factors of successful outsourcing are listed as follows:
– Correct understanding of goals and objectives
– Strategic vision and plan
– Choosing the right work partner
– Management of existing relationships
– A detailed contract
– Open communication among stakeholders
– Managers’ support and interest
– Caring for staff
– Budget verification
– Use of outside experts