outsourcing

Why You Should Consider Outsourcing Your Website Design & Development

You don’t have to outsource because some businesses are doing it — you should have a reason for doing it and have a plan in place.

Some business owners outsource marketing-related tasks because they want to get more done, increasing demands and deadlines, and decrease operation costs to increase profit.

So it becomes imperative for businesses to re-evaluate their current business strategies and learn new ways to scale their business.

One of the keys to productivity is “outsourcing,” especially in this digital age. But the question “should we outsource?” is always met with fear and anxiety from most business owners.

Being anxious is expected because you may have the feeling that when you outsource, you are admitting to failure and calling for help, or losing control of the project.

But the truth is, outsourcing some of your duties can be the smartest thing to do in most cases.

Here are some reasons why you should consider outsourcing for your business:

1. Outsourcing is Cost-effective

Reducing the cost of operations is the number one reason why smart businesses should outsource.

In a recent survey, about 59% of business owners cited cost reduction as their major reason for outsourcing.

What's Driving Companies Towards OutsourcingIn a Deloitte study, 64% of companies outsource because they want to save costs.

There are lots of outsourcing companies and a large number of freelancers, who are not only trained professionals with many years of experience but are also willing to stick to smaller budgets.

To save their reputation, these freelancers deliver quality services on a timely basis. More so, you’ve only got to pay freelancers, either hourly or a fixed rate, for the work they carry out depending on the agreed term.

This is why outsourcing is far more cost-effective than hiring a full-time staff – remember you still have to pay your staff during idle times, off work and even other allowances and benefits like health insurance contributions, gratuity benefits, etc.

Furthermore, there are some necessary costs involved in finding, hiring, and integrating a new employee – estimated at US$4,100 per employee.

Whereas, hiring a freelancer requires just posting the job’s description on any online crowdsourcing websites and waiting for responses from capable, professional, and well-experienced individuals within a short time.

No time-consuming interview and selection process, no training is required since they’re already trained and have established themselves as experts in their field, and no additional cost involved.

All you have to do is browse through the list of freelancers that applied and make your selection based on their applications, level of experience, and reviews – as simple as that.

More so, you don’t need to invest in the latest software and technologies to support your business activities, no administrative expenses, and no need to set up a workstation. All of these would be handled by the freelancer or the outsourcing company.

59% of businesses that outsourced their business activities claimed that it helps them to reduce their cost of operation.17% of respondents said it accelerated their organizational transformation.

WhatsApp is a good example of a company that adopted outsourcing due to its cost-effectiveness – does that sound odd of a popular business like “WhatsApp?”

A few years ago, WhatsApp needed to cut down on its operating costs. So, it outsourced the required technical aspect.

WhatsAppWhatsApp hired an outsourcer from Russia to handle the app development task because Russia has professional app developers.

The 30 full-time and 5 part-time employees in their small office in Mountain View focused mainly on internal operations and customer support while app development was managed mainly through outsourcing.

WhatsApp saved a substantial amount of money through this process.

Likewise, in 2012 Citigroup moved most of its IT operations to outsourcing agencies to save cost. About 11,000 jobs, mostly IT operations, were reportedly cut at Citigroup’s headquarters. You can imagine how much Citigroup would have saved on budget.

2. Outsourcing Increases Productivity

Outsourcing enables you to leave your important tasks in the hands of capable professionals while you free up time to concentrate on other core business operations.

This is because outsourcing companies and freelancers are well-trained to deliver quality work within a set time frame and can handle your business activities with little or no supervision.

Hence, outsourcing gives you greater flexibility that will enable you to manage your time effectively. If you’re looking at outsourcing, don’t just see it as a way to save cost, it could cost more money but you’ll increase productivity at other important aspects of your business.

TransferWiseTransferWise uses outsourcing to boost productivity by hiring the right people and training them to do the best work, regardless of where they live.

Generally, freelancers deliver jobs faster than in-house staff. This is because they have to impress their clients and move on to new jobs. So, they can help you scale up your business and boost its operations in no time.

Also, outsourcers are already trained and experienced in the field and are always ready to take on the task. So, there is no need for any time-consuming training process, which may impede productivity.

Moreover, outsourcing enables smart business owners to take advantage of time differences. Important business activities can be outsourced to freelancers or outsourcing companies in an opposite time zone while the business closes for the day.

By the time the company would open the next day, all the necessary activities would have been handled and completed by the outsourcing agents. This is very important for business productivity.

Finally, with outsourcing, you wouldn’t need to increase your liability just because you want to increase productivity — an event typical of in-house staff.

Outsourcing will help you to maximize operational efficiency and yet reduce liabilities by hiring only experts in that field required for your business improvement.

Most Commonly Outsourced Business ProcessesA study by Clutch showed that 24% of businesses choose to outsource primarily to increase productivity — especially the most common business operations from accounting to digital marketing to customer support.

Some years ago, Pfizer, Inc. was faced with a huge financial crisis. The company decided to take some cost-reduction steps, which included reducing its annual budget by about US$4 Billion.

Pfizer realized that cutting costs alone wouldn't help the company to move back to its strong position. So, it decided to leverage human capital mostly.

Pfizer analyzed the activities of its staff and realized that most of its highly-paid staff are spending quality time on mundane tasks like working with PowerPoint, researching, data entry, etc. instead of focusing on high-value work for which they were originally hired.

Pfizer outsourced the mundane tasks to two outsourcing firms based in Indian, while the core staff focused on the high-value work.

This outsourcing program helped Pfizer to increase the productivity of its employees as the highly-paid employees now concentrate their efforts on more strategic aspects of the business operations.

3. Outsourcing Allows You to Hire Expert in their Fields

Most times, the in-house staff comes with its strengths and weaknesses. It is cheaper and more efficient to outsource this weak part to experts in the field than organizing training for the in-house staff.

Luckily, the rise in digital technology has allowed business owners to run their business operations and activities through telecommuting, making it possible to hire experts anywhere on the globe as long as there is data connectivity.

Hubstaff reported that 65% of employees who work remotely are more efficient and have a higher level of productivity than in-house agents.

Larger businesses reported that freelancers are about 35% to 40% more efficient.

Also, more than two-thirds of the surveyed businesses reported that freelancers are more productive.

Outsourcing enables businesses to hire qualified experts, who can handle the job seamlessly and at a cheaper rate. Most of the time, outsourcing agencies have a team of experts that can handle different aspects of an activity.

For instance, you can outsource to an agency that can create great content as well as offer other digital marketing services, such as web design, etc.

That means that when you hire an outsourcing agency, you’re not relying on one person, but a team of experts, to deliver all the answers.

A study by clutch showed that 18% of businesses choose to outsource primarily to receive assistance from an expert.

Gourmet Candy Company (GCC) decided to expand its business operations to further grow its business. So, GCC established its new offices in North London.

Although GCC was already using Dynamics GP as their ERP software and had a team of IT-specialists, the management realized that if the expansion would work, the company needs to get some outside help.

Hence, GCC outsourced its IT services to an experienced IT services provider that supported its in-house IT team while the management and in-house IT team focused on growing the business.

A few months after outsourcing the IT services, GCC conducted an audit and realized that the company had been overspending on its in-house IT team that was only barely able to handle the current demands.

Outsourcing the IT services to an expert in the field did not only help GCC to cut down on unnecessary spending and to save costs but also facilitated the business expansion process.

4. Outsourcing Enables Fresh Creative Ideas and Innovations

In a business organization, there is a tendency that all the generated ideas would come only from a few employees and within the four walls and there is no thinking outside of the box.

This is sometimes referred to as “Boardroom Decisions Syndrome” or “Boardroom Mentality.” In such a case, no staff is bringing in fresh ideas, nobody is considering an approach from an external view.

And business decisions are usually influenced by popular staff, those with the most boisterous mannerisms, or senior staff.

Core business decisions may become dominated by one strong opinion, which may not be the best, causing other members of staff to simply keep mute and follow along.

It’s critical sometimes to go out of the boardroom mentality and sample market research and external uninfluenced ideas, conducted by third-party professionals that have no ulterior motives.

Outsourcing is one of the ways to get such a uniquely creative approach and ideas that are “never” exposed during the boardroom meeting. You can make a rough sketch of your idea and allow a creative outsourcing agent to bring beauty out of it.

Nowadays, outsourcing innovation is the latest engine of growth. For instance, Cisco Systems realized this and has positioned itself as a high-profile company that outsources for innovations.

Cisco LogoIn the 1990s, before the company became as famous as it is now, Cisco realized that to keep up with its 100% growth rate, it shouldn’t rely on its internal manufacturing or hiring abilities.

Hence, the company adopted outsourcing innovations, where Cisco formed long-term relationships with manufacturers and opened its networks, business processes, and systems to them for “joint equipment development.”

Presently, outsourcers provide most of Cisco’s hardware, component, and manufacturing innovations. For instance, over 30 outsourcers are responsible for developing new technology and optimizing performance for Cisco.

Starbucks is another company that knows the importance of outsourcing innovation. For instance, Starbucks recently began to offer almond milk as a substitute in their drinks, which set coffee connoisseurs everywhere rejoicing.

Guess what, this idea came from an outsourcer through the “My Starbucks Idea” program.

Conclusion

Let me summarize all my points above on why you should consider outsourcing with this beautiful illustration.

You’re learned and well qualified to teach your children. Yet you didn’t home school your children from elementary class through to college level, why?

Because at one point or the other, you didn’t have the necessary resources or time required to handle homeschooling. So you engage “experts” to teach your children — that’s exactly how outsourcing works.

As your children’s education worked out fine just because you outsourced to the right schools. You would run your business better with outsourcing than you would have done alone.

According to a report by ATKearney on the Widening Impact of Automation, here’s the list of five top countries for outsourcing based on business environment scores, people skills, availability, and evaluated cost: India, China, Malaysia, Indonesia, and Brazil.

Not only does outsourcing save you cost and time, but it also gives you access to experts, great talent, and innovative technologies that will help you run your business more efficiently.

CATEGORIES   Web Design, Web Development

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