Outsourcing has a horrible reputation yet its principles unlock the true potential of productivity in any business if you get it right.
Outsourcing, the process of handing over business functions to a third party to complete on your behalf, has been around for a while. Up until recently, it’s had RISK stamped all over it. Work being sent overseas (sometimes unbeknownst to the business owner), the use of cheap unqualified labour here at home and lack of control and transparency, are all cited as reasons not to do it. These reasons, along with peer-to-peer examples of negative experiences between business owners all amplify the risk factor, or what we call the X factor.
With the development of professional services organisations, so much of that has changed. There are a number of fantastic options that allow SME owners to work with professional companies that become your legal, HR and finance department, and let you concentrate on what you do best.
The benefits of working with leaders in the outsourced space are numerous:
1. Targeted – these companies are specialists. This is all they do, day in, day out. They are qualified, up to date with the latest legislation and it is their job to ensure that you operate within state and federal guidelines in their chosen field. You gain access to high-level expertise, as and when you need it
2. Measurable – they have qualified staff, strong reputations built from having worked with organisations such as yours and guard this reputation like a lioness. The best service providers view their service as a product and quality-control it on this basis
3. Value-based – on first glance their services seem expensive, but look further and they offer terrific value for money. Firstly, they release you to do what you do best. Assuming you aren’t in business to run your business, this makes financial sense. Secondly, their speciality leads to efficiency that neither you nor your very out-dated internal process you currently have can match. Lastly, if you take the true cost of a non-revenue generating area of your organisation into account, you would be including gross wages, on-costs (that’s super, workers compensation, payroll tax, personal and annual leave), staff training, as well as fines, interest and legal fees if it turns out that you are not compliant
Once you make the decision to switch, it’s time to select the right service. Next time, we’ll be outlining a fool-proof guide to making the right choice.
Remember, knowing where you were yesterday is not enough. It’s about knowing how what’s happening today will dictate where you are tomorrow.
Better Business Basics 