The Reasons to Startup Should Consider Outsourcing
The global outsourcing market is estimated to be worth about $90 billion. Within that vast market are businesses of all sizes outsourcing the work of marketing accounts and HR, IT and many more departments. This is for a reason. Outsourcing your work could help your business reduce costs, assign particular tasks to specialists, reduce time and increase your product line.
Are you looking to take your company to the next level? Do you want to increase the talent pool without the cost of hiring new employees? Let's examine how you can do that through outsourcing.
Outsourcing can save you cash on staff
Cost reduction is the top reason companies outsource. In fact 59% of companies polled cited cost savings as their reason for putting this practice into action. Why? outsourcing tasks to professionals with the right training let you adhere to smaller budgets and only pay what you need. This is generally cheaper than employing a full-time workerwhich is an expensive business at the UAE.
When hiring full-time employees, UAE employers must take into consideration the cost of health insurance, visa fees, and gratuity benefits. The result is an employee that is significantly more than their annual salary. For freelancers, they typically be charged an hourly rate for the work they complete and the cost saving is easy to spot.
Then, there are the expenses involved in locating an employee with a fresh start in this first position. It's estimated to be about US$ 4,100 per employee. When searching for freelancers, all you have to do is publish an advertisement on an online marketplace and wait for a response - no need for training, there is no lengthy interview process, and there is no added expense.
Outsourcing ensures your business tasks are handled by an expert
Many companies make the error of only considering outsourcing after they reach capacity, using outsourcing solely to take care of the overflow of work. One of the primary benefits of outsourcing is not instant and convenient access to a second hand, however. It is more about the level of expertise that these extra hands are.
If you decide to outsource work, you are handing it over to an expert who can provide the full attention. You might be an excellent entrepreneur but that doesn't suggest you're a brilliant designer, writer, or pro. If you're a fan of outsourcing and outsourcing, you don't have to be. Just hand over the specific tasks to professionals.
Outsourcing: What exactly is it?
You could even outsource complete business functions to improve your company's skills. Just look at the numbers: 74% of companies outsource IT 52% of businesses outsource HR, 43% of companies contract out procurement to third parties, while 39% companies outsource finance.
A professional for every job was an unimaginable feat for many businesses before. Now, thanks to outsourcing, this is now attainable. Why shouldn't you take advantage of that? Or to put it in the words of the former US politician and vice-chairman of JPMorgan Chase, Alphonso Jackson, "Where the work can be done outdoors better than it can inside, we should take advantage of it."
Outsourcing can save you time
Maybe you're not at the phase where an outsourced HR or IT department is necessary. However, you may be at full capacity and need to make time for more crucial business tasks. There are plenty of simple ways to do this.
Tasks that are smaller to outsource - checklist: managing social media, content creation emails, admin and filing, as well as invoicing. This takes these chores off your plate frees you to concentrate on expanding and developing your business. Additionally, since every task you outsource is now in the hands of a professional, you'll also gain time in managing your projects.
This means there's no reason for lengthy planning meetings and reviews. Simply brief your freelancers and they'll do the rest. It's simple rapid, cost-effective, and quick. This is why so many companies do it.
Outsourcing lets your company expand its offering
There's another benefit to having the ability to call the assistance of an expert -or a team of expertsanytime you require it. It lets you expand to new markets gradually without spending a fortune.
Imagine that you are the owner of a clothing company and would like increase production to create shoes. It has traditionally been a long, not to mention costly- process. You'll have to find someone to conduct market studies and analyses, or hire new employees with expertise in shoe manufacturing. There are additional resources required for promoting your product into the market.
Outsourcing lets you pay per hour
Employ a freelancer to carry out your market research: If you're pleased with your results, contract out a small run of production to a manufacturer. Next, engage the assistance of freelance marketing and sales experts for the amount of time you are able to spend the money for. Essentially, outsourcing lets you expand by expanding your market at your own pace without overextending your resources. Try the market out, and if you find that the demand is growing, then gradually devote more outsourcing resources to this particular area of your company.
Outsourcing and the future of your company
If you're trying to increase the capacity of your business, expand your product or expand your expertise, there's no easier or cost-effective option than outsourcing.
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