The efficiency of outsourcing
Entrusting your business processes to external vendors by outsourcing them has been a growing trend for some time now, and shows every indication of continuing to rise. Last year, the global outsourcing market amounted to around $110 billion.
It’s estimated that around 80% of Australia’s businesses outsource some of their processes. The ability to offload the stress of some peripheral processes such as staffing – especially for small businesses – means business owners can focus on their core operations.
Outsourcing can be a significant cost saver, especially for small businesses. Economies of scale (the higher the scale of operation, the cheaper the process) mean that small businesses face a significant disadvantage in terms of overhead costs.
Utilising a company operating at a larger scale and specialising in a particular area of operation (payroll services, on-boarding for new employees) means that smaller businesses can take advantage of that lower price without having to operate at that scale themselves. It gives small businesses the ability to match larger scale organisations without having to bear the extra costs.
Outsourcing means you can focus on the areas of your business you want to focus on. It frees up time and energy for decisions and processes that require your full attention and that are closer to your skill set, letting others take care of the peripheral processes.
By taking advantage of external companies with particular areas of specialisation, you can increase the efficiency of your own business. It means business owners don’t have to be a “jack of all trades” and new projects can be up and running quickly and efficiently.
It also allows businesses to share risk – an organisation can avoid putting all its eggs in one basket by spreading risk across a number of channels, rather than through one operational system.
The benefits of outsourcing are widespread and proven, particularly when it comes to staffing. Organisations can stay flexible with their staff size, focus on up-skilling existing staff and can access a much larger talent pool without having to hire en masse.
Outsourcing through an organisation like Findstaff lets businesses focus on what they do best. Start working on your business, not in your business.