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How Outsourcing Cuts Costs for Your Business

Published October 26, 2020

Written by: Emily Clark
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Emily Clark

Emily Clark is a Content Developer for Clutch, a business-to-business platform that helps companies recognize, compare and make an informed decision about the best business services and solutions for their project needs. 

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Outsourcing provides businesses with easy access to a skilled and low-cost pool of talent. Rather than spend time and money to hire or train full-time employees, many companies hire an outsourced team.

Outsourcing your business processes helps to increase productivity and efficiency while freeing up employees for more meaningful work. From payroll to customer service to advertising, outsourcing is a flexible way to bolster your capacity without increasing costs or headaches.

Use this article to learn three ways to cut costs with an outsourced team.

Prioritizing Mission-Critical Projects and Tasks

Tasks that are expensive, technical or simply time-consuming can be given to an outsourced team.

For example, data entry requires manpower but little expertise. Outsourcing data entry can conserve valuable employee time and get the job done more quickly.

IT services, by contrast, are commonly outsourced due to their high degree of complexity. Instead of investing in a lengthy training program, a business can hire a specialized team to complete the project much more efficiently.

According to Clutch, small businesses are most likely to outsource technical tasks such as accounting, IT services and digital marketing.

Outsourcing any of these can lead to significant savings that can be reinvested for growth. Meanwhile, you liberate employees from mundane tasks to accomplish meaningful work.

When selecting a vendor, balance the need for savings with quality. If in-house employees become saddled with fixing the outsourced team’s mistakes, you won’t save resources or time. Take the time to carefully vet an outsourced team before deciding to work with them.

Leveraging the Full Day for Getting Work Done

You can increase productivity by outsourcing to different time zones.

Say a team in India is handling your customer care. Now your business can offer customers around-the-clock support. If your software development is done in Ukraine after you close for the night, you’ve accelerated your project timeline without increasing costs.

Outsourcing the right processes lets you boost capacity, elevate efficiency and conserve employee resources simultaneously. Price and availability of talent varies by global region, so choose a time zone that suits your needs, budget and expertise.

Whether in Europe or Asia, it’s important to partner with a responsive and reliable vendor. Successful vendor partnerships are based on clear communication, expectations and follow-through.

Eliminating Extensive Training

Outsourced workers are trained to complete a specific job. By tapping into this on-demand expertise, you can eliminate costly and expensive training sessions for in-house staff.

According to “The 2018 Training Industry Report,” employees receive an average of 46.7 hours of training per year at an average cost of $1,075 per learner.

Employees receive an average of 46.7 hours of training per year at an average cost of $1,075 per learner.

Instead of investing that money into training employees for a single task that might only occur once, you could use it to grow more projects and opportunities. Hiring one or more trained experts is an effective way to ensure your project finishes on time and is a success. This is especially true for skill-intensive work like software development or IT, as it’s infeasible for in-house employees to be trained on these skills in a reasonable timeframe.

Meanwhile, the high demand for skilled computer labor can make it difficult to hire IT and software workers within the U.S. Outsourced teams are a flexible approach to add on-demand expertise to your roster without imposing costly training on in-house employees.

Cutting Costs With an Outsourced Team

Outsourcing is a quick, flexible, and cost-effective solution to both mundane and expert-level tasks. Consider an outsourced team if you’re looking to save money and lift your capacity without hiring a full-time employee.

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