Businesses need outsourcing as a way of expansion, niche specialization and peripheral liaisoning. Today, when businesses aim towards offering specialized products and services, it is apparently difficult to keep every responsibility embraced to one’s own self. It is necessary to disperse off responsibility to entities that specialize in them. And that is how the concept of outsourcing has become indispensable for businesses today. Not all of them however! Many businesses still consider mastering every facet of their business on their own selves. Many more do not need to outsource their business operations at all. Does your business need to get its operations outsourced? Let’s find out!
Why do I outsource?
If you have built up a setup from the scratch, you must be fairly frequented with the diversity of functions that are needed to be performed. When a business is in its nascence, it does not earn enough to outsource its operations. However, when it continues to grow, the array of peripheral functions and the volume of dedicated efforts to be put into each of those functions increases exponentially. Then arises the need to hand over the extra jobs to their respective experts. This liberates the owner from the side errands and allows him to concentrate on the core business area. That is the reason you need to outsource.
Secondly, when a business expands, peripheral operations eat up a lot of its resources. These resources include time, manpower, infrastructure, training and assessment systems. Outsourcing simply cuts off those resource needs and enables the delegation of those resources to more useful purposes. Thirdly, it does not make sense to be ‘Jack’ of all trades and ‘Master’ of none. Focusing on the completion of peripheral functions enables the business to meet its break-even, but takes a toll on the profit-making capacity. When these functions are given off to their respective experts, you are assured of excellence in every facet of your business, practically because everything is being managed by an expert.
Does my business really need outsourcing?
Outsourcing is one of the most popular business models now-a-days. Most popular, but definitely not a compulsory one. Whether or not your business needs outsourcing as the most appropriate model is dependent on what the size of your business and the array of services that you are targeting. Medium-sized enterprises benefit the most out of this model. Start-ups do not have the financial resources to meet the demands of the outsourcing partners. The bigger, well-established ones do not have the need to outsource. They start catering to the peripheral services on their own. This process lowers the final price of their product or service. The bigger honchos can also afford to dedicate entire departments towards handling the core and peripheral functions. Apart from saving on outsourcing costs, they also create direct employment.
Medium-sized enterprises, on the other hand, stay in doldrums, facing the tug of human resources all the time. Training costs are a major headache for them. And since they are still growing, they expect a couple of functions to be added to their list. Keeping all these functions in their own kitty leaves their resources exhausted and stunts their profit curve.
So if you are a medium sized business with a decent turnover, you might want to use outsourcing as a model.
How do I find trustworthy outsource partners?
Word of mouth and strategic partnerships are proven ways. Another commendable way is to get listed in a free business directory India and find out the ones that are enlisted there. Business directories are trusted platforms to go for.