Business owners and heads run into minor issues daily, such as troubleshooting IT issues, managing and training employees, and other small yet significant problems. These problems can cause the business owners’ attention to stray away from the more important core issues, like company growth, stability, direction, etc. With so many responsibilities, it can be hard for them to take care of everything by themselves and they look for solutions or assistance with their problems. In a situation like this, outsourcing can be a simple yet effective solution.
What is outsourcing?
In simple words, outsourcing can be described as a business practice of farming services or job functions out to a third party. These services can range from IT functions to managing and training staff. Outsourcing can also help with issues such as disaster recovery, software development, quality assurance testing, etc.
Companies can choose to outsource their services onshore (within the country they are based in), offshore (to a company based in a distant country), or nearshore (to a company based in a neighboring company). Traditionally, companies pursue offshore and nearshore options to save costs.
Benefits of outsourcing
When companies farm services out to different companies, they attract all sorts of benefits and advantages. Some of these benefits include:
- Cost beneficial: The prime and most obvious benefit of outsourcing is the financial savings that come with it. If your company or brand needs a service that could have high expenses, you can reach out to other service providers for completing the task. There is a considerable wage gap between western and Asian countries. Due to this, many companies that require specific services can get the job done from India at a fraction of the cost. Businesses can save up to 60% on their expenses if they outsource their work to India.
- Increase in efficiency: When companies reach out to outsourcing partners, they bring in years of experience and professionalism with them. The partners are experienced in their areas of operations and hence they can do a better job with understanding and knowledge of the domain. This leads to a significant rise in productivity and efficiency and the partners contribute to the bottom line of the company.
- Increased focus on core areas