Outsourcing services allow business owners to hire specialized expertise in managing key aspects of their company’s back-end operations and infrastructure. By bringing on an experienced professional without hiring internally, the logistical aspects of your business will be significantly easier to manage. These services are often a necessity for small businesses rather than a luxury. Everything from outsourced accounting to HR and website development is a viable option for business owners, regardless of their industry or the scale of their enterprise.
In this article, we’ll review a few of the key services you may want to consider outsourcing to increase the cost-efficiency of your company. Many of these outsourced services allow you to scale your business and a more controlled pace without taking on too many risks at once. As a company owner, you’ll be able to get back to the core tenets of your business and focus on what’s next rather than what’s going on right now.
Top 7 Components You Should Start Outsourcing
Here are the top seven advantages of outsourcing.
1. Accounting and Bookkeeping
Outsourced financial services providers create opportunities for business growth and optimize your current operations’ cash flow and profitability. Whether you’re a small business or you’re expanding outwards with new offices and locations, hiring an outsourced accountant is almost always more cost-efficient than hiring internally. Accountant salaries, particularly for CPAs, are significantly higher than most business service positions. In addition, you won’t have to waste any time with training.
An outsourced bookkeeper might be the right choice for outsourced financial services for small businesses with five or fewer employees. However, accounting professionals are usually the most reliable financial resource you can outsource for most companies. When you first sign on with an accounting professional, you’ll receive a full audit of your books, including a review of your current and potential profit margins.
Your accountant can help identify areas of the business where you should cut costs or reduce risks, along with other components of your operation that you should continue to grow. Many accounting professionals can also help business owners prepare for tax season, ensuring that no costly mistakes or surprises come up down the road.
2. Marketing and SEO
Digital marketing and search engine optimization (SEO) are key components of expanding your business, increasing localized or national visibility, and generating new custom or client leads. To begin, you’ll need to reach out to a digital marketing agency in your local area, preferably with experience in working with companies similar to yours. Digital marketing campaigns typically begin with upgrading your website, including its content, user interface, and imagery.
Digital marketing professionals can also help you clarify your brand voice to differentiate your products and services from those of your competitors. Understanding your keyword rankings, search position, and competitive presence online requires an increasingly technical skillset and knowledge. To market your business online and increase your customer base, you should consider outsourcing your marketing.
3. IT and Tech Support Services
Support for your company’s technology, servers, and web hosting can save business owners a considerable amount of time and money. Outsourced IT can help you purchase and deploy new hosting infrastructure, optimize application and software performance for your employees or customers, and oversee your company’s cybersecurity.
In short, outsourced IT can help you integrate better and more reliable technology into your existing operations while supporting the tasks and services that your in-house team provides. Unlike some outsourcing services, you aren’t necessarily replacing this department or losing control of your digital presence, website, or networks. Instead, you are simply improving the productivity or efficiency of your in-house team members.
4. HR (Human Resources)
Human resources, hiring, and employee management are specialized services for your business that can help you with everything from hiring to employee rights compliance. Outsourced HR is a simple, straightforward option for keeping employee records, connecting employees with their benefits, and increasing their overall satisfaction with their current position. In some cases, you can hire an HR professional to help you manage payroll, though this is often a service provided by your outsourced accounting team instead.
5. Product Shipping and Handling
For eCommerce companies, hiring a company or outsourced professional to manage the logistical aspects of shipping and holding goods is of considerable importance. Outsourced inventory management companies can help to ensure your business’s profitability by making sure you aren’t carrying too many in stock at once and that your shipping and receiving policies are swift and efficient. Outsourced inventory management can also help to reduce the number of returns and associated problems that can often affect your profitability.
6. Business Analytics
Business analytics, otherwise known as Business Intelligence (BI), is a vital outsourced process that helps company owners make more informed, data-driven decisions. BI professionals can help you better understand your finances and identify areas where your business goals were met or not met, using KPIs (Key Performance Indicators). Regardless of the data that your outsourced BI professional is working with, their end goal is to make analytical information about your business more accessible and understandable.
7. Customer Service
Professional customer support services go a long way in making your customers enjoy working in your business. If they have questions, concerns, or simply want to speak with a representative of your company, it’s essential that they have this outlet and conversation opportunity. If you’re concerned about negative reviews on your company’s Yelp or Google My Business listing, an outsourced customer service company may also be able to help.
Outsourcing key logistical aspects of your company can ultimately save business owners considerable time and money. Outsourced accounting, IT, and digital marketing allow your business to benefit from the expertise of professionals in the industry without having to go through the hassle and expenses associated with hiring internally. Many outsourcing companies can also help you set more effective goals and KPIs to measure the successes of your operations and identify areas of improvement.