Outsourcing is also known as Business Process Outsourcing (BPO). This is the process of hiring another individual or company, either domestically or internationally, to handle business activities for you. It has become a common business practice that allows small and medium-sized businesses to gain services and skills they would usually find hard to develop, because of either financial or manpower restrictions, or possibly a combination of both. Meaning, you can grow your business as and when you need to, without any major investment.
It also allows your business to focus on core competencies and, more importantly, cut costs and improve efficiency, all very much hassle-free. As time has gone by over the last decade or so, business owners now realize that there are many reasons that companies, both big and small, outsource various jobs, but the most prominent advantage seems to be the fact that it saves money.
Outsourcing also allows companies to focus on other business issues while having the details taken care of by outside experts. A perfect example would be knowing that telemarketing is the best way to get the word out in regard to a new product or service you’re launching (either locally, nationally or internationally), but admitting that it’s not really your forte. You can hire an outsourcing company that provides these services, whilst you concentrate on getting ready for the influx of inquiries as a result of the campaign.
It also means that a large amount of resources and attention that might fall on the shoulders of management professionals can be used for more important, broader issues within the company – which is always a good thing! The specialized company that handles the outsourced work is often streamlined and will normally have world-class capabilities and access to new technology that a growing company simply couldn’t afford to invest in on their own. Plus, if a company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries, too.
Such tasks can be, but are not limited to roles such as accounting, bookkeeping, sales and marketing, design and manufacturing, development, promotions, administrative and back office assistance, customer service, web development and much more.