HOW TO SAVE MORE MONEY THROUGH BUSINESS GROWTH SERVICES OUTSOURCING

INTRODUCTION

Business Growth Services are the various players that work in synergy to foster the success and advancement of any business. The goal of every business, regardless the size, industry or localization, is to optimally produce more, up a customer base, thereby causing an increase in revenue. Growth requires intentional strategies that ensure profitability while cutting costs.

However, outsourcing rightly is one strategy that is often overlooked. Small and start-up businesses suffer the most, in an attempt to save costs, they spend more.

Business Growth is the success experiences of a business, as influenced by internal and external forces. These experiences vary with set goals and time. Growing businesses experience different realities, some of which could be an increase in market penetration and advancement, improved sales funnel, more staff strength, acquisition of more tools, improved competitive advantage and above all, maximized profitability and continuity.

Outsourcing is when a company delegates one or more portions of its tasks to contractors that are experts in those activities. These contractors take over the ownership, management and logistics of the tasks apportioned to them, with an agreement to professionally and optimally deliver the best. Outsourcing involves hiring a specialized external service provider to perform specific business endeavours on behalf of the company, as a cost-cutting measure. Outsourcing helps businesses to focus on core business operations without losing value in overall service or product delivery. Outsourcing is simply a division of labour extended to third parties.

WHAT CAN BE OUTSOURCED:

There is no limit to services that can be subcontracted to third parties to undertake. Human resource management, legal services, content writing, engineering services, customer services management, research, marketing, and manufacturing, are some of the limitless services that can be delegated to specialists’ companies to own and manage on behalf of the company. These services can be grouped into two (2) categories:

● Business Process Outsourcing:

● Manufacturing Services: This entails outsourcing the manufacturing of essential productions to delegates that have the needed capacities to handle them. It could be the manufacturing of whole or part. Companies do not necessarily have to own the overall manufacturing of their products. This is a common practice among manufacturers of automobiles, electronics, fashion companies and many more.

● Project Outsourcing: Projects can come in any form and can be outsourced. It could be a launch of a new idea, campaign, relief efforts, social responsibility etc.

● Professional Outsourcing: Accounting, legal services, call centre operations, human resource management, product listing, engineering, data processing, marketing, and research, are some of the professional services that can be delegated.

● Information Technology Outsourcing: Outsourcing IT tasks involve subcontracting the IT development, maintenance and support. It could be software and web development, data management and more.

WHEN SHOULD BUSINESSES OUTSOURCE:

Businesses need to weigh their options and decide what’s best. However, companies can outsource when there is a need to improve delivery speed, reduce costs of output, boost efficiency, and create more time to focus on the core operations of the company to actualize business growth.

COST IMPLICATIONS OF OUTSOURCING:

Companies outsource to leverage on the expertise of third parties. These providers already possess the human and capital resources, technical knowledge, legal license and environment to carry out the tasks and deliver value. This edge benefits the brand in a number of ways that bring about cost conveniences and approximate expenses significantly.

● Operational flexibility: Brands that outsource are better able to focus on growing the business, with time and efforts optimally engaged. This gives room to better strategize on measures that foster growth.

● Increased efficiency and productivity: Just like the everyday advantage of division of labour, outsourcing also increases expertise delivery and productivity, which also makes good accounting books. The input of skilled and seasonal experts eliminates incompetency and removes the cost of in-house hiring and training.

● Competitive fairness: With BPO, startups can favourably compete with established brands in the market without fear or intimidation. This is made possible as the company is equally able to dish out quality at minimal cost, just like established brands, thereby helping the company expand rapidly.

● Reduced Labor cost: Talent acquisition and management costs are drastically reduced. Hiring cost, time and processes are taken care of to serve better advantage. Human capital management can be expensive and needs proper control, to avoid eventual loss.

● Leverage technology: Companies can leverage on the technology and experience of their delegates to promote their business. They know and possess the technical trends and strength of the market to actualize profits for the business. Outsourcing help to evolve with trends in technology without having to deal with the rigours of keep-up, set-up and maintenance.

● Customer satisfaction: For effective market penetration and advancement, customer satisfaction is key. Outsourcing helps brands dish out quality and quantity that enhances the company’s integrity and allows it to thrive and compete head-on.

● Controls Investment Cost: Fixed capital-intensive costs are better managed and translate to become variable costs. The cost of acquiring tools and equipment and human capital management is moved around for better control and pumped into other operations. This in turn help to manage cost better. It also removes the financial burden of asset maintenance.

● Delivery of value: Outsourcing helps businesses deliver value to markets since all activities from scratch to finish are handled by different experts, both internally and externally, thereby leading to quality service and product delivery. This in the long run reflects on revenue and profits.

● Gain speed: Outsourcing also helps to save time and speeds up delivery. This translate to less time consumption and better opportunity to focus on the core mandates of the company, with little or less distraction.

As a business owner, you might want to start spreading your net and try out more opportunities that ease your business process. Outsourcing might just be the answer to your questions.