The 4 “Hows” Behind Outsourcing

You may have heard of outsourcing before reading this. Outsourcing has proven to have huge benefits to businesses. It can help them to save time, money, resources, and even make their lives easier.

But what exactly IS outsourcing?

Outsourcing can mean reaching out to a supplier-a vendor, subcontractor or freelancer-to perform a service or supply a good. Here are the top industries that take advantage of outsourcing… and make it work for their organizations:

• IT (60%)
• Legal opinions (67%)
• Banking (40% for Help Desks)
• Insurance and customer service (54%) industries

According to Computer Economics, large companies are spending 7.8% of their IT budgets (small firms are spending 3.7%) on outsourcing with a 42% satisfaction rating. And now that there is cloud computing, outsourcing is only expected to grow in popularity in 2016.

How Outsourcing Can Help Your Business outsource 

There are several practical reasons why a business would want to outsource:

• It’s cheaper to have work done by another entity, which has the required training and equipment already rather than spending hard-earned money and resources
• The goods and/or service are delivered faster following your criteria and quality requirements
• Businesses don’t have to worry about hiring and training temporary workers, expand workspaces, and increase overhead expenses.
• For example, IT organizations often see up to 30% savings in overhead expenses by outsourcing.
• Acquiring the right resources to do a job is time-consuming and costly, which can easily be solved by outsourcing.

Outsourcing increases overall productivity and efficiency.

All in all, it makes more business sense because it will increase efficiency-not only as an organization, but allowing you, the business owner or executive to focus and concentrate on expanding your business.

Outsourcing decreases the exposure of your business to risk.

Your teams can continue doing their jobs without interruptions. Additionally, any outsourced projects are handled externally, which means they have no impact on your daily operations, and which also means you won’t suffer from a drop in productivity.

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