Last Updated on September 13, 2023
Whats outsourcing? Outsourcing is a term that conjures up all sorts of images in the minds of entrepreneurs. Some individuals see it as a way to save money and cut costs, whereas others view it as a means to get the best talent at rock-bottom prices. The truth lies somewhere in between: outsourcing can be a vital tool for your business, but only if you do it right.
In this article, we’ll discuss what outsourcing is and why you might want to consider it for your business; how outsourcing works; things to consider before signing on with an outsourcer; how much you can save by outsourcing specific tasks; who should be doing what within your organization; pitfalls of outsourcing; tips for finding the right virtual assistant for any given project or job; how not falling victim to these pitfalls can help keep your business running smoothly!
What is outsourcing?
Outsourcing is the practice of delegating work to a third party. The third party can be a virtual assistant or a group of virtual assistants. They’re usually located in another country and are often cheaper than your onsite staff would demand.
Outsourcing has become popular with businesses globally because it permits them to focus on what they do best by leveraging the company’s core competency, which adds unique value to their customers. This is while outsourcing other tasks (like coding, thus skills the company lacks or work that requires low-level skills) that are better left up to someone specialized in that area.
Strategic outsourcing is a notion that has been around for years, but it’s recently become more popular as businesses try to gain a competitive edge in today’s global economy. The idea behind strategic outsourcing is simple: if you outsource tasks that don’t contribute to your core competency, then you can focus on what matters – your core business.
This doesn’t mean that every single task should be outsourced; only those that don’t fall under the umbrella of what makes your company unique or profitable should be considered for outsourcing.
For instance, if your company makes widgets and sells them at retail stores across the country, then there would be no reason for them not to handle their inventory management system since this isn’t part of their core competency (making and selling widgets).
On the other hand, if another widget manufacturer was looking into creating an e-commerce site where customers could purchase their products online instead of visiting physical stores across town, then they may want an outside company that specializes in website development so they can focus all their efforts on making great-tasting widgets instead!
More than whats outsourcing, you may be wondering why you should outsource. But before we identify the core reasons, you can look at Toyota in the 1980s, where it produced 70 cars per employee, compared to GM’s count of only 10 per employee. Toyota’s success was because it outsources most of the parts to resemble a vehicle. But let’s go deeper and look at a few of the most common reasons companies outsource:
To save time and money
Outsourcing can help you cut business costs by reducing the number of employees you need to maintain, freeing up time for those more critical to your business’s success.
To focus on your core work
To focus on core services and products instead of non-essential tasks like administrative support or HR services (think about how many times someone has called in sick). It allows businesses to focus on what they do best rather than doing everything themselves.
Lessen your stress levels
Reduce stress levels by letting go of tasks that take up unnecessary mental energy (for example, filing paperwork) so that employees can focus on more important things like growing their businesses or improving customer relationships.
Boost productivity through better use of resources, such as equipment or software programs, means faster delivery times while maintaining quality standards.
What can you outsource?
You can outsource a wide range of clerical functions, including the following:
- Customer service
- Sales and marketing (including lead generation)
You can also outsource content creation, copywriting and web development.
Outsourcing may also be suitable for your business if you want to save money on accounting and data entry services.
What not to outsource
Your core tasks. This would be the work you and your team would be focused on. Therefore, outsourcing would allow you to handle low-level tasks and offer support so the team can focus on their work.
How to outsource
You can source your virtual assistant. Hiring, especially hiring remote people, can be difficult. The easier route is using an outsourcing company like Aristo Sourcing.
Factors that need to be kept in mind would be what time zones the virtual assistants are located in if they are native English speakers, and the skill sets you need to complete the tasks.
The pitfalls of outsourcing
You have to be clear about what you want
It’s imperative to know what you need before you hire someone. If you don’t see what you want, then it’s unlikely that the person who does the work will be able to give it to you. And if they do manage to do so by some stroke of luck or magic, then there’s no guarantee that their solution will solve any problems or make your business better in any meaningful way – it might even make things worse!
Outsourcing can be a boon for your business if you know what you’re doing
Outsourcing is one of the best ways to save money and time while growing your business.
You must recognize whats outsourcinis g before deciding whether or not it’s suitable for your company.
Therefore, as mentioned above, outsourcing refers to hiring an outside firm or individual with proven expertise in carrying out specific tasks – such as writing content or designing websites – to do these things on your employees’ behalf.
This means that instead of having everyone from marketing directors to web designers on staff at all times, companies rely on third parties (outsourcers) who specialize in specific areas of expertise, such as social media management or web development services, so they don’t need those types of employees themselves.
Whats outsourcing – the bottom line
With the right approach, outsourcing can be a great way to grow your business. You need to make sure that you know what you’re doing before hiring anyone and make sure that they have all the necessary skills for the job. If not, you may waste time and money on something that doesn’t work out as planned!