Janet Yellen, American economist and the 15th Chair of the Federal Reserve (the Fed), once remarked, “In the long run, outsourcing is another form of trade that benefits the U.S. economy by giving us cheaper ways to do things.” This is a powerful statement from one of America’s leading economists. But outsourcing is imitable. Factors such as digitalization, the spread of information communication technology (ICT), and global trade organizations have given birth to globalization, and with this, outsourcing. This may be a simplistic description of events, but what is undeniable is that outsourcing services have given many businesses a competitive edge. However, before we explain how outsourcing works, we should define outsourcing.
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What is outsourcing?
The business practice of hiring workers in another country or area is known as outsourcing. Outsourcing is a business practice whereby external people or consultants are hired to work for a business, carry out services, or manufacture goods, which the business’s in-house team would normally do. In essence, outsourcing is a cost-cutting measure conducted by companies of any size, from small startup businesses to large international corporations. Some large global corporations include Alibaba, Unilever, Skype, and Basecamp, only a few examples of companies that outsource. Moreover, the outsourcing definition is more than just been a cost-cutting tool. Outsourcing allows companies to onboard great talent and novel ideas that offer a fresh perspective on a service or product. As such, outsourcing is the practice of businesses releasing some of their functions to external vendors. Outsourcing is, therefore, a versatile tool to help scale a company to success. Aristo Sourcing is an example of an outsourcing provider. We find great people who can offer you a cost-effective staffing solution to help you upscale faster.
What are the outsourcing benefits?
To understand the benefits of outsourcing, you need to ask why companies outsource. In other words, to know why companies outsource, you need to know the following primary reason for companies to outsource. We have already mentioned two benefits of outsourcing: savings on costs and onboarding much-needed skills. However, outsourcing offers more value to businesses than just these. Besides saving around 70% on operational costs, a company can also improve efficiency. The virtual assistant, a remote worker or consultant, would be hired to take over the mundane and time-consuming tasks. Such free up the CEO, founder, or manager’s time, allowing more focus on their primary duties. The virtual assistant does the same work for much less than it would have cost had the owner or manager charged out his time. The VA will add to the company’s efficiency and productivity. Outsourcing also offers businesses a hike to the next level up. The business would have access to a game-changer, becoming more effective, having the needed skills at the right time, and tapping into a cost-effective staffing solution. But more so, the VA ensures that the deliverables are completed on time, which also helps to lessen the lead time for a business to present their products to the market soonest.
What services can be outsourced?
Outsourcing services offer a comprehensive source of gains, including outsourcing human resources (HR) services, outsourcing human resources, outsourcing software development, outsourcing bookkeeping, and outsourcing photo editing. However, many more services can be outsourced. The people contracted to undertake the outsourced work are virtual or remote assistants since they work remotely from their home office. Look at our service page for a more detailed list of services.
How does outsourcing work?
Each company’s needs are different, but generally, the suggested approach is to have an agency assist with sourcing the best people. Too many entrepreneurs believe that they can find the most apposite staff themselves. Sadly, however, they lack the skills to hire correctly and do not know how to manage people. Ultimately, the exercise is futile. Avoid this by booking a free consultation with our outsourcing expert. We will guide you through the process and make valuable suggestions to benefit your bottom line and efficiency. There are some things you should be doing, including analyzing your projects, tasks, and business processes. You will then see where you need help – for instance. You might lack social media skills or need someone to optimize your website and digital marketing. Aristo Sourcing will take care of the rest, which will allow you to focus on your core work. Our team will also shadow the virtual assistant to ensure everything runs smoothly. And more so, when things change, you can also change your virtual assistant by onboarding additional help, offboarding staff, or switching to a different virtual assistant specialist. For instance, you needed a graphic designer, but now you need a website developer who can produce some graphic design work. Or you may want to opt for HR outsourcing. You don’t want to be burdened by the costs of an in-house HR team while certainly needing an HR component in your company.
What’s next?
When you are ready to explore your possibilities, book a complimentary consultation. Our expert will examine your needs, discuss these with you, also provide you with a free quote. Therefore, book your consultation today!