What is outsourcing in business? This may well be the difference between success and failure so you need to know the answer
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Table of contents
What is outsourcing
This really is finding an alternate workforce to do those jobs that will not be done by your fixed employees. Investopedia provided a view that may be helpful.
The advent of new work from home labor force created by Covid has opened up new opportunities to contract your workout.
Outsourcing may be a new term however its origins go back in time.
Freelancers, contractors, part-timers, farming out, deploying even your advertising, legal and accounting team are outsourced labor. They do work for you on an hourly or contract basis.
What made outsourcing popular?
Back in 2012 the company Fiverr started to become popular offering all sorts of gigs for the sum of $5.
This was followed by Upworks in 2015 providing a perceived higher level of skills.
Graphic design, copywriting, artworks, logos could all be sourced for $5 or a bit more for extras.
I have used them many times for graphic works that are really not my strong suit.
The opportunities on these programs are endless and the quality depends on blind luck.
Workers tender for your business and provide a background resume so that picking one should be easy. I often used two and picked the best one or started again.
“Fiverr has since evolved into one of the most popular freelance communities, with over 5.5 million buyers and more than 830,000 freelancers. Moreover, 50 million transactions have been sold on the platform to date.6 Feb 2022″
Cyberworks
Other forms of outsourcing
As stated above most businesses have outside financial, legal, and advertising groups that contribute to the workflow at an hourly rate.
You can't afford to have a solicitor on board but when you want one it is necessary to have someone that understands your business. This is the same with accountants, auditors, and even bookkeepers who can join that group.
Recruitment has seen massive growth in outsourced work and becomes an industry on its own
I would even consider that affiliate marketers could be considered outsourced labor as they are paid only on results.
What is outsourcing in business and has it grown?
Has outsourcing grown
The need for a specialized labor force is necessary now more than ever before.
The need to maintain your social media commitments is one great example. Other than paying high-priced specialized firms for this service having your own person makes contact easy and results visible at all times.
Writing Newsletters is another example, when these need to be churned out on a regular basis. You provide a list of subjects and the rest is done for you. The rewards will more than compensate for the small number of outgoing costs.
Blogging is a time-consuming exercise with the average blog taking between 2 to3.5 hours and needs to be done consistently. Outsourcing makes it possible to maintain flow and gather those results.
Companies with blogs achieve 76% more web visitors than those without so the cost is nothing compared to the sales.
Gardening, window cleaning, maintenance, brokers, IT support are all sources we use and would not consider changing.
In recent times telephone services are often supplied and maintained by others.
What are some advantages of outsourcing
Certainly a saving on infrastructure, you don't require office space, computers or insurance.
Time-saving. When you have a regular service provider it becomes a set and forget 0pperation that requires little or no supervision.
Efficiency is greatly increased because of concentration on a core role and not multi-tasking.
This can offer a faster and much better service than marshaling office staff to get organized can sometimes be difficult with over lapping duties.
Certainly, there is a cost advantage when you pay by the job or employ cheaper contractors than full-time staff with overheads.
You can hire and fire at will. When you don't like the work being produced change can be made at any time.
Disdavantages of outsourcing
Quality control is done at arm's length and may take more management.
Training can be time-consuming and need to be repeated on change.
Work demands can be refused to leave you vulnerable to production output.
Your endeavor is to have your people in place producing quality work at a reasonable price.
What is outsourcing in business and can it be a quality product?
Retaining quality in your outsourced personal
This most often depends on clear guidelines set by you and performance appraisals at a regular interval.
You can not argue with results when they are visible and freely available. feedback must be constant and positive to reinforce the quality expected.
It has not been said that outsourcing is easy. In fact, it can be quite arduous when things are not going right. That is why clear instructions are necessary.
With the high profile companies like Fiverr and Upwork, you have a choice, however, sifting through crap products will make the task seem impossible and the outcome uncertain.
That is good reason to have a competent operator on a regular flow of work. It may be necessary to pay more for this privilege however the saving in your time and return on the effort will be fair compensation
Conclusion
We all use some form of outsourcing and have been happy with the results. The challenge is to find more opportunities that will have a cost return benefit.
Outsourcing is becoming the product for the decade because more suppliers will come onto the market to meet the rising demands of the business.
There are many small things you must do to maintain a marketing edge however your time is far better spent at the coal face.
What is outsourcing in business by Peter Hanley
