Many people hear the word “outsource” and immediately associate the term with companies manufacturing goods and services in different countries. This is a typical cost control method, but the terminology is wrong. Outsourcing could be this practice, but that is the broadest definition of the term “outsource.” Outsourcing is a process every business engages in to some degree. There are plenty of reasons for outsourcing, but the first thing to do is gain a real understanding of the word, and figure out how it is different than offshoring. Entrepreneurs working with Resource Operations International (ROI) know all about the benefits of outsourcing, and how it’s different than offshoring.
The simplest, easiest way to understand outsourcing is its taking a task a business must do and having someone else do it. Instead of doing something within the four walls of the business, someone outside the business performs these functions. Offshoring is when this process is taken outside of the country. It’s a very narrow definition of outsourcing. There are plenty of outsourcing tasks that are done within the same municipality though. For example, plenty of entrepreneurs outsource tasks like bookkeeping. However, having a bookkeeper halfway around the world is impractical. Having a bookkeeper nearby is a great way to lower costs and increase efficiency. When looking around at other businesses, outsourcing is a very common practice.
There are many ways large corporations outsource. For example, some of the biggest corporations in the world don’t have dedicated accounting departments – they have external firms handling their taxes and other financial compliance work. Some of the biggest accounting firms in the world are located down the block from the headquarters of the world’s largest corporations. This proves outsourcing is something the big guys do, so small business should be involved with outsourcing as well.
When a business outsources with ROI, what they get is assurance of a task being completed at a higher proficiency than could be completed within the office. For entrepreneurs, there is a constant need to stretch every asset as far as it can go. Employees must wear several hats and as an entrepreneur, there are often times what needs to be done has nothing to do with the core mission of the business. Nothing can be discouraging like going to work and spending energy in areas that are unrelated to the core mission of the business. If someone goes into business because they love widgets and want to sell widgets, then why should these entrepreneurs spend time working on the books, marketing, or other essential areas for the business’s health but not the widget itself?
The first advantage of outsourcing comes with time. Time is the one resource in business that’s unrenewable. Time spent on something where proficiencies are lacking is time that’s not productive. For entrepreneurs, they often have small teams and these teams are already stretched thin by the very nature of the small business. It’s unsustainable to ask employees to spend valuable time on several tasks when if they hone in on a couple they’re proficient at would be much more effective. Outsourcing with ROI allows an entrepreneur and their team keeps a small business on task and able to work on the tasks they came to work to do, not to do the extra stuff they’re unsure about.
Everything a business does is a financial decision. There’s a cost attached to every phone call answered and every choice made. The question is what’s the best way to make these costs worth it? The reason why outsourcing is a better use of resources is everyone gets to work in their area of proficiency. The entrepreneur’s team gets to dial in on their best areas of expertise. Outsourcing with ROI means the tasks ROI is in charge of handling are done quickly and with greater proficiency than can be achieved within the office. The reason is simple – ROI’s competency is handling the business of business. While entrepreneurs handle their competencies, ROI makes sure to handle theirs.
The best part about outsourcing with ROI is the proficiency on all tasks. The problem with doing tasks within the office is the decreased proficiency. The less proficient the task, the more time needed to address the task. This additional time usually manifests itself in remediating problems associated with a lack of proficiency. Some of these problems can be benign. Others can lead to massive problems. For example, if a small business messes up taxes, this turns into a long, expensive problem. While there is a temptation to keep things in house because the upfront cost may be lower, the back-end cost is where companies get hammered. Outsourcing with ROI means companies don’t have to deal with the risk of things being done wrong due to inexperience. Instead, small businesses have the comfort of knowing whatever task is being done, it’s being done right.
There are plenty of different ways to outsource, but the reason why outsourcing with ROI is the best choice is entrepreneurs need not do all the vetting they’d otherwise do when hiring a freelancer or an agency. ROI consultants have a team helping them execute all tasks. These professionals are vetted and are among the best in the industry. Therefore, when looking at the best way to make a business lean, efficient, and profitable, entrepreneurs call ROI consultants for outsourcing.