What is Outsourcing? How does it work?


Outsourcing has been in the news a lot in recent years, and it’s often associated with large operations such as call centres being moved abroad. However, outsourcing is simply the process of using outside suppliers to do certain tasks, and so it can be used by companies of all sizes to reduce their workload. While outsourcing work can seem quite complex, it can be a simple process, and here are a few things that businesses should keep in mind.

Removing repetitive tasks

Many businesses find that there are certain administrative tasks that take up a lot of time, and these tasks are often repetitive in nature. In small and medium sized companies, this can take up a large percentage of business hours that’d be better spent elsewhere. They may decide to use business process outsourcing to lighten the load, which is where certain processes are outsourced to a third party. This could include:

  • Customer services
  • Admin tasks
  • IT work
  • Manufacturing tasks

A huge number of jobs have been outsourced in the past decade, which has freed up time for staff, and allowed management to cut costs.

Flexible workers

Those who have smaller businesses, or even work alone, might not need to outsource throughout the year. However, they might need help at the busiest times, or when unexpected work comes in. A newer form of outsourcing is the virtual assistant, which is someone who can pick up simple tasks whenever they’re needed. They’re often used as receptionists, personal assistants, or other admin staff, for when hiring a temp might not be an option. Because virtual assistants are usually self-employed, they’re only paid for the work they carry out, and are therefore an ideal option for businesses on a tight budget.

Cutting costs

A big reason for outsourcing is usually to save money. Outsourced work is often taken abroad where wages are lower, so businesses don’t have to spend money on staff wages in their own country. Using services such as BPO Virtual Assistant means that companies are only charged for the work carried out, and so they can allocate those time-consuming tasks overseas to cut costs.

Staff morale

Having to carry out dull, time-consuming tasks can be bad for staff morale, and can lead to a lack of productivity. By shifting some of the burden and outsourcing work, staff members can spend time on more complex and creative projects, which is good for clients and allows them to use their talents to their full potential.

Outsourcing certain tasks makes sense for businesses who are struggling to manage their workload. It can save time and money, and is a flexible way to ensure tasks are carried out on time and to budget. Juggling staff is often difficult in a modern business, and there will often be times where business owners just want to send the tasks off and get them returned on time. Using outsourcing can help companies to achieve their targets during the busiest times, and stay on top of the competition.

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