Why Outsourcing May Be Effective for Your Business

For businesses, growth is the ultimate goal. It’s all about progress, more so for startups and small businesses. Once your company stops growing, that’s the time it starts declining, as well.

In today’s fast-paced world, a company’s ability to be agile and adaptive to new challenges is critical to staying competitive in the market. This is where successful outsourcing comes in. Outsourcing is an excellent strategy to support your company across its growth stages.

For example, when a business expands, its employees may find themselves caught with too many tasks — more than what they can handle. If you’re the company owner, you might be left with no choice but to consider hiring additional staff. However, hiring isn’t your sole option. Outsourcing can be beneficial in sustaining your business without expanding your in-house team.

It’s in your best interest to establish a good balance of in-house staff and outsourced resources to ensure constant growth and productivity.

In fact, many of the world’s largest corporations outsource portions of their work. To understand why outsourcing can be the best move for your company, you must first understand why other businesses do it.

In this article, we’ll delve into outsourcing and how the benefits of outsourcing can help your company.

What is Outsourcing?

Outsourcing is a business strategy in which work is performed by a third party instead of in-house team members. Outsourcing projects are typically done for a set period at an agreed price between your company and your provider. Many organizations outsource various functions of their business to freelancers, contractors, or specialized firms.

A company trying to cut costs on manpower can turn to outsourcing. Other companies also explore offshoring, a type of outsourcing where the provider is located in a foreign country with lower labor costs. In fact, numerous companies decide to look for Global PEO solutions in countries like China to outsource their HR department and reduce cost. While outsourcing can make for an efficient workflow, you should be aware of the pros and cons before deciding if it’s suitable for your company.

How can outsourcing benefit your business?

Outsourcing your business functions to third-party providers has numerous advantages. Here are the top ones.

  1. Cost-cutting

The most evident advantage is the cost savings that outsourcing provides. Outsourcing can help you save money by giving you access to high-quality services at reasonable prices. Regardless of the industry, outsourcing is often less expensive than hiring in-house personnel since outsourcing firms package their services at affordable rates to attract clients.

  1. More time for core responsibilities

Another significant benefit to outsourcing is it enables you to concentrate on your company’s core activities. For example, cloud accounting service providers let you do more by outsourcing financial functions that are not directly related to your area of specialization but are still essential in your day-to-day operations.

This approach helps you allocate your time, effort, and resources to areas where they are most needed, as well as to other more pressing issues.

  1. Better access to qualified personnel

Outsourcing can free you up from spending money on costly recruitment and training. Outsourcing providers have a large pool of highly competent workers, but you are in no obligation to hire them for long-term contracts if you decide to scale back your business operations. You’re essentially handing over the responsibilities of human resource management and infrastructure development to your outsourcing partner.

  1. Higher-quality products and services

You can expect a high-quality product or service that meets industry standards when you outsource. Small firms can also benefit from outsourcing by gaining access to professionals with greater experience in their field than employees whose work background is mostly with smaller teams.

  1. Improved relationships with customers

Outsourcing can help you in providing better service to your clients, which can improve your business’s relationship with them. If a client has a problem that demands immediate attention from one of your staff, the outsourcing team can take care of it right away. You can rest assured your clients are happy and satisfied with the timely resolution of their concerns.

Why do businesses outsource?

From one-time projects and fixed terms to recurring contracts that extend over a certain period, there are a variety of reasons many companies outsource their business processes. Some of the common ones include:

  • Spending less on operating and overhead costs
  • Using the knowledge of a third-party service provider to help the company develop
  • Having more focus on vital business processes rather than non-essential responsibilities
  • Avoiding recurring costs and salary payments for full-time staff

To Outsource or Not to Outsource?

Outsourcing, like any other business strategy, has pros and cons. It is your responsibility to explore and determine which plan works best for accomplishing your organization’s goals. Among the advantages of outsourcing is that it offers a helping hand where and when your company needs support.

It’s a competitive marketplace, and those who are quick to respond will surely have an edge. Outsourcing is a smart approach to increase your responsiveness while also providing you with the extra time and resources you need to expand your company.


Regina del Rosario is from Booth & Partners, a Seattle-based company with operations in the

The Philippines. With a solid background in conducting interviews with multiple candidates to identify the one with the most potential. Hired over 100 applicants for positions in dozens of industries and campaigns, at levels ranging from interns to upper-level management. Excellent communication abilities, including written and oral, professional and interpersonal. Highly organized and able to complete several complicated administrative tasks simultaneously.