Are You Outsourcing?
Often, when I explain what I do for a living being an outsourced human resource business advisor, I get asked why companies outsource in the first place.
At first glance, it can be puzzling why companies wouldn’t just solve their own problems—whether it be a cost reduction effort, growth initiative or a new market entry themselves. Nevertheless, there are many reasons companies really need the experience from an outsourced firm (and why I am able to engage and work with some amazing people solving some complex challenges!).
If you’ve ever considered outsourcing a for a particular specialty – whether it be human resources, finance, marketing or any other specific need, read below about how outsourcing can help companies perform better.
Gain An Outside Perspective
You know how sometimes when you’re dealing with an issue in your life, you turn to friends and family for their opinions? Well, companies often need this too, especially when making tough decisions. Often times, clients have a perspective on how to solve the problem they are facing but want to make sure that what they’re thinking is correct (or that they aren’t so close to the challenge that they’re missing the obvious answer). So, they turn to an experienced outsourced firm to come in and provide their opinion and solve a problem.
However, this isn’t just any opinion: Because specialty outsourced companies often work with many different businesses and may have worked through this problem in the past with someone else, they can really provide a perspective based on what they’ve seen work (or not) before. Moreover, given this experience, they can often bring new and innovative ideas to the table that clients probably wouldn’t have been able to see on their own.
Proven Expertise…Less Human Capital Expense
Sometimes the problems companies need solving are important, but they don’t necessarily have the expertise or people-power to solve them. These companies still have to focus on their day-to-day operations, and new initiatives typically require reprioritizing employees’ core job responsibilities. However, will reprioritizing your employee’s responsibilities be a good solution to your problem? What about the added cost of hiring new employees to backfill the gaps? This solution doesn’t always make sense, seeing as many of these projects are one-offs. Whether it’s a cost reduction business strategy requiring a dedicated team of six for a year or even a post-merger integration that requires a team of sixty for a month, clients will struggle to get the expertise in place to do this critical work.
In instances like these, the proper outsourcing firm serves as your highly skilled support department. They will fix your problem, reduce risk exposure and cost substantially less than hiring a full-time employee or employees of the company, so it is often a smart decision to use an outsourcing firm than hire someone new.
Another, and perhaps the most common reason that companies outsource is to gain access to a specialized skill set or knowledge that might not exist in house. By engaging an outsourcing firm, you get access to needed expertise such as human resources, high-level financials, and marketing among others. If you were to hire these highly specialized people full-time, it would not only be expensive, but the company might not have enough work to keep said employees busy year round. But, thanks to outsourcing, companies can bring in that skill set and knowledge on demand when they need it most!
Sometimes, when companies are working on a challenging problem or a controversial project, it can be hard for them to make decisions or take the necessary actions without getting wrapped up in emotions or politics. So, they bring in an outsourced firm to provide an unbiased eye and do some of the dirty work for them. Outsourcing companies with a strong track-record can provide actionable advice for a client that is attempting to solve a problem. They will challenge the status quo that is typically not well received within an organization, and this is accomplished without any risk to one’s self or the company.
So, if your goal is to run your company more efficiently, grow faster and make more money, invest in a credentialed outsourcing company to help you along the way. You will be glad you did and amazingly enough, you will find yourself back working on your business instead of in your business.