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| So why outsource? |
| Tuesday, 16 August 2011 08:02 |
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Interestingly I have heard this comment from someone I spoke to recently: “An outsourcing company will never be as good as employing your own staff. They do not have an interest in the success of my business”. Consider this however – the more successful your business, the more successful the outsourcing business becomes as fees naturally increase as the workload does. There is a direct correlation and therefore a vested interest by both parties to see the venture succeed! One of the greatest considerations of course is the cost of outsourcing against directly employing your own staff. Aside from salary however, consider the following savings
An outsourcing company will have their own premises and staff who undertake work for a variety of clients, so they are able to pass on economies of scale which means you benefit from accessing a team that handle your work in a cost effective manner. Most small business owners initially handle every aspect of their company in order to safeguard cash reserves. As the business grows, additional support is required and so do you hire someone who is a 'Jack/Jill of all trades but yet master of none'? Employing the right person for the job leads to the following:
Having the right person for the right job at hand is the key to efficient and cost effective growth for your business. An outsourcing company is able to do this, with the backing of a team if necessary, which leads nicely onto scalability. Imagine you are walking in to see a prospect and have the confidence to handle whatever they ask you to deal with. For a large company this would never pose a problem as they have departments and teams of people to draw on. But what if you are small - why should you preclude your business from being able to offer a solution under the same circumstances and therefore benefit from the rewards? Outsourcing can help you
Outsourcing provides access to a large pool of resources (both specialist skills and manpower) that you can call on in times of need, and restrict as the need arises.
So if an outsourcing company can do all this and more efficiently than hiring staff, why isn't everyone doing it? An interesting question, generally the business owner needs to recognise that change is needed in order to free up their time in order to grow. There are very few organisations however who are able to offer a complete outsourced package to undertake the administration and financial work under one roof. Once you have identified an outsourcing company you can work with, ask to talk to existing customers for their feedback on how they work. This is no different from employing a member of staff. You wouldn't employ someone without interviewing or taking references. From the outset the outsourcing company should provide you with details of how and when they will report to you so that you are fully abreast of developments and any issues that need to be addressed. Ensure that a weekly teleconference call is factored into any reporting, as the manager responsible for handling your work should be accountable. On a monthly/quarterly basis a more in depth management meeting should be held, ideally face to face or via a conference facility.
Image courtesy of Ambro / FreeDigitalPhotos.net
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