Key Points on How Outsourcing Benefits a Business

how covid will push outsourcing

Outsourcing is a strategic decision by a company to reduce costs and increase efficiency by hiring another individual or company to perform tasks, provide services or handle operations. Today business owners are realising that they cannot efficiently handle all activities required to run their business forever.

The types of tasks that are best outsourced are those that require:

  1. Highly skilled or expert labor like website development
  2. Repetitive performance like payroll and accounts.
  3. Specialized knowledge like digital marketing.

Here are the key points on how outsourcing benefits a business:

Access to skilled expertise: This is one of the primary reasons for outsourcing, as even the best core team cannot handle all tasks. By outsourcing particular tasks, companies are often able to substantially improve performance by drawing on the niche skills of experts in certain fields.

Start new projects quickly: A good outsourcing firm has the resources to start a project right away. Handling the same project in-house might involve taking weeks or months to hire and train the right people, and provide required support.


Cost advantages: With outsourcing you only pay for what you need and when you need. It converts fixed costs into variable costs, releases capital for investment elsewhere in your business. Outsourcing eliminates the need for investment in infrastructure as the outsourcing partner is responsible for the business process completely.

 Focus on What Matters: Outsourcing gives you freedom from support processes, thus enabling you to concentrate your skills on building your brand, and move on to providing higher value-added services.

Risk Management: By outsourcing certain processes on to experts in their respective fields, you will benefit from their enhanced ability to plan and mitigate potential risks

Improved Efficiency, Flexibility & Scalability: The skilled expertise of the outsourcing partner will produce quality deliverables faster, increasing your turn around time to the customer, thereby contributing to the bottom-line of your company. It allows your business to maintain a financial flexibility when there is an uncertainty in demand. You can scale up or down comfortably.

Competitive Edge: Outsourcing can help small firms act “big” by giving them access to the same economies of scale, efficiency, and expertise that large companies enjoy.

Outsourcing can also help to make your business more flexible and agile, able to adapt to changing market conditions and challenges, while providing cost savings and service level improvements. But like any other business venture proper planning and research is necessary before choosing an outsourcing partner.

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