In today’s fast-paced business world, there is more pressure than ever for companies to provide superior quality and customer support. In order to do this while keeping costs down, businesses of all types are choosing to outsource their non-core processes to local experts. Some of the most commonly outsourced functions include accounting, IT and cybersecurity support, marketing, graphic and web design, etc.
In fact, business process outsourcing as it is called, or BPO, is expected to be one of the most significant trends in 2017.
How can outsourcing benefit small business owners?
While there are many advantages to outsourcing locally, here are a few ways it can benefit small businesses and help them gain competitive advantage:
1. Cost Advantages.
The most obvious advantage of BPO is the cost savings that it enables by reducing your fixed overhead because you only pay for the work that is done. Research has shown that, on average, when companies calculate the true cost of an employee - including wage, benefits, PTO, taxes, unemployment, etc. - their true savings add up to over 50%.
2. More Time to Focus on Core Competencies.
Local outsourcing also frees up both you and your staff to focus on core competencies. By having focus your company can ensure its employees are assigned to the right projects at the right time. By dedicating their time to their strengths, you derive the maximum benefit from their talents. Not to mention, it also helps free up more of your resources so that you can use them where it counts.
Local outsourcing helps companies differentiate from the competition by prioritizing the activities that appeal to the customer. For example, customer experience. As author and management expert Geoffrey Moore explains "Whatever is the new thing that creates differentiation, that’s core. Any activity that doesn’t differentiate the company in the eyes of the customer becomes less important than core capabilities.”
4. Shared Responsibility.
When outsourcing key tasks and processes to an experienced partner, they take responsibility for them on your behalf. However, outsourcing does not mean relinquishing responsibility. The outsourcing partner assumes responsibility for the management of the work and for the outcome, but your organization must still be sure to maintain communication and monitor the work to ensure that the work is progressing as expected and that objectives are met.
5. Reduced Risk.
Every business investment carries a certain amount of risk. Markets, competition, government regulations, financial conditions, and technologies all change very quickly. Outsourcing providers assume and manage this risk for you. Because they possess the knowledge and resources required to monitor and manage risk effectively and efficiently, they generally are much better at knowing how to mitigate risk in their area(s) of expertise.
6. Increased Efficiency.
Through best practices, continuous improvements, the latest tools, technology and training methodologies, an outsourcer can bring a level of efficiency that may be hard to match through in-house solutions. Specialists can offer small businesses high levels of expertise and flexibility, as well as faster execution. This leads to an increase in efficiency and productivity, which contributes to your bottom line.
About Stingray Advisory Group LLC: Stingray Advisory Group LLC is based in Grand Rapids, Michigan and a proud Local First member. By creating dynamic customized solutions for business growth, we empower businesses and entrepreneurs with the tools to further their development. To learn more or schedule a consultation, visit www.stingrayadvisorygroup.com. Follow us today on Facebook, LinkedIN, Google+ and Twitter for more helpful tips!
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The new expansion will feature a similar aesthetic. Garage doors will be open out onto a patio in the warmer months so folks can soak in all that warm weather!