There is an impression among small-size business owners that outsourcing, especially with large outsource companies, is beyond their reach. They are concerned with the expense involved that may defeat their purpose to cut cost in their operations.
The concern of many small-scale business owners is that they do not have enough activities yet involving accounting or shipping that warrant the outsourcing for these functions. At first glance, they may seem to have a valid point for their hesitation. However, if they look deeper into the situation, outsourcing these tasks can actually save them money and have more time left to expand their business. They should consider these 2 benefits of outsourcing to a small-size company:
- Outsourcing saves money: Hiring in-house accountant and shipping personnel means fixed salaries and benefits for them regardless of the volume of their activities. On the other hand, if these jobs are outsourced, arrangements can be made that payment will be based only on the actual work done. The company does not have to pay for the dead hours of a regular employee.
This cost-saving benefit is more evident in shipping. The company saves money, not only in paying its own delivery staff, but also in additional investment for the purchase, maintenance, and insurance of delivery vehicles, not to mention the rapid depreciating value of the vehicles on the long run. Also, in outsourcing the shipment function, there is no need to worry about sudden increase or decrease in the volume of goods to be delivered because the outsourced shipping company can adjust the rates accordingly. In contrast, if the company buys its own delivery vehicles, adding more when delivery shoots up or getting rid of them when the volume goes down is a big and expensive headache.
- Outsourcing gains time: By outsourcing, a company gains the time for it to attend to its core business and the expansion of operation. Most often, these phases of the business are ignored or sacrificed due to the attention given to supportive or auxiliary functions like accounting, customer service, manpower issues, shipping, and administrative tasks. Although these are vital to the company, they would not exist long if there is no time for expansion or growth.
Time is also gained by outsourcing in terms of 24/7 virtual operation it provides while spending only for a regular 8-5 operation rate. This is possible because of the unique advantage the system offers whereby an outsourced overseas site operates at the time when the principal company is asleep on the other side of the globe. In this arrangement, the company always pays only for the daytime operation rate in each location.
These are 2 of the many benefits outsourcing can provide a company. However, they are the usual and more common concerns of small-size companies that prevent them from availing of this business strategy. This article aims to allay their fears and correct their misconceptions about outsourcing and hopefully pave the way to their faster growth and success.
For more details on outsourcing and how it could benefit your company, it is best to consult with legitimate contractors like Mr. Outsource for assistance.