What Are The Reasons Companies Outsource?

Outsourcing is a business practice in which a business, corporation, organization, or individual selects to outsource or hire talent that is not a visible part of the company or organization. They outsource talent. The outside assistant will be aiding the company or yourself in a similar role as a consultant, mostly completing your tasks remotely. The assistant can either be in the same country or abroad.

Moreover, assistants can work for a contracted period or full-time, depending on the client’s needs. In addition, where the company or organization’s employees typically perform the tasks, an assistant can now take on these tasks remotely. Moreover, the outsourcing market volume is set to climb to $136.10 billion by 2027.

outsourcing helping a business man

One misunderstanding is that outsourcing requires that present employees be dismissed in preference for virtual assistants. However, this is an extreme form of outsourcing.

The recommendation is that businesses outsource virtual assistants to assist with time-consuming and mundane tasks. Such will relieve the company’s employees of work overload, improving their working conditions.

The pros & cons of outsourcing

Pros for companies that outsource

  • Outsourcing controls and reduces operating costs – in most cases, outsourcing is cheaper than employing a new staff member. You can save between 20% – 30% on operating costs.
  • Outsourcing enhances the company’s focus -in terms of staff wellness and increasing productivity in the workplace. Regular employees can focus on their core tasks if a company removes tedious, routine tasks from staff. The virtual assistant/s will help your permanent employees prepare data and relieve your team, allowing them to work more efficiently.
  • Outsourcing enlarges the talent pool – outsourcing is an easy way to add new talent to the company or organization for specific tasks or projects. More so, outsourcing allows a company an agile method of working.
  • Outsourcing also offloads some of the risks onto another company. A company assistant can remove such burdens as the monthly payroll and virtual assistant management.

Cons for companies that outsource

  • Staff might feel threatened – Some staff members may feel threatened by possible replacement. In addition, introducing virtual assistants might not sit well with the permanent staff. The result could have an impact on their productivity and morale. Companies should communicate clearly with their team to manage these fears.
  • There can be a difference in standards – An assistant’s standard can differ, mainly when hired from a foreign country. State the requirements clearly before onboarding such an assistant to avoid a problem with varying standards.
  • There could be communication issues – Because assistants work remotely, communication can be problematic. Communication can be via phone, email, or WhatsApp. Some language differences can also confuse communication. To overcome this, video conferencing and face-to-face communication can improve the situation. Use Zoom or Tauria for your video conferencing sessions.
  • Security risk – There will always be a risk with each new hire. The company’s data and resources can be misused. However, tracking software can help to avoid some of the problems. Using apps such as LastPass allows the company owner to retain privacy on passwords, but the app hides such.
Start-up that outsource some tasks talking about strategy

What is necessary for successful outsourcing?

Here is a list of requirements that can make outsourcing a successful project:

  • Set clear vision, goals, and plans
  • Make use of the best outsourcing company
  • Make sure that the company offers relationship-management support
  • Maintain open communication with the agency and assistants
  •  Make sure to provide a detailed brief of what you are looking for in an assistant
  • Know your needs and what you expect from your support

Two items, however, are critical:

  • Open communication – a fundamental element for successful onboarding is clear, open, and ongoing communication. If there are changes, do communicate these. Also, the various parties need to know what is expected and what special requirements there may be. You are en route to success if all parties have open communication channels. 
  • Support – It can be overwhelming to onboard your first virtual assistant. However, if you have support, the process will be much easier. Do discuss any issues you have − the agency will be able to assist you. This will ensure a healthy relationship between you and your agency, which will support you as you grow. 

The Ultimate Outsourcing Guide:

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