Outsourcing can improve productivity and competitiveness 10- to 100-fold, states Michael Corbett in his book “The Outsourcing Revolution.” Those are big numbers, so it is not a surprise that around 90 percent of companies surveyed for the book viewed outsourcing as crucial to their business success.
Outsourcing allows you to draw on the skill sets you need without having to set up a designated department in your own company. The overhead of employing a full-time staff member, according to Drexel University, is about 30 percent above their standard salary. Therefore, for many companies, it makes sense to outsource functions that require more specialized skills.
The trick is knowing what functions to outsource and which to keep in-house. Consider the type of maintenance required and also give a thought to costs in terms of updating skills at a later stage. An independent contractor will make it their business to keep their skills up to date whereas if you employ someone, it becomes your responsibility to train him or her.
If you’re still struggling to know what business functions to outsource, here are three commonly outsourced tasks:
IT can be a specialized field that needs to be outsourced. According to a 2006 report by Aberdeen Group, 63 percent of survey respondents cite cost reductions as their top reason for outsourcing IT. However, you need to carefully vet these companies before you give them access to secure and confidential information so you don’t end up in a bad position with your clients or customers.
Many companies decide to outsource their accounting departments to avoid the hassle and stress. However, paying a professional accounting firm can be expensive, especially if they capture all the data. The problem is that getting the books right is essential. Especially when you are starting out, you need to know whether you are earning a profit or not.
Fortunately, there is a middle-ground between doing it yourself and hiring an accounting firm. Find an online accounting program that makes invoicing and tracking payments easy. It also should sort your entries into the correct financial accounts to help make your year-end tax returns as simple as calling up the necessary reports. Systems like Sage One offer online accounting software solutions that allow you to find the perfect balance between a cost-effective solution and the professional skills needed to get your financial accounts into order.
Typing and Transcription Work
There are many companies that provide transcription or typing services for reasonable prices. Outsourcing this kind of work can be very cost-effective because it requires few special skills and may not be worth paying a full-time staff member. Beyond the financial reasons, outsourcing can be beneficial by offering your documents in the cloud and improving report accuracy and turnaround times. If your staff is rushing to complete this extra task, costly mistakes can be made.
Services like Transcription Outsourcing complete medical, law enforcement, legal, academic and financial transcription. This company ensures quality control with designated account managers and transcription teams for customized work.
Outsourcing routine business tasks can greatly benefit your business. In addition to saving you money on a full-time employee and training, outsourcing can be more efficient and accurate for your business in the long run. So, take a look at your IT, accounting and transcription positions in your company and decide whether it’s beneficial to outsource them or not.