“Do what you do best and outsource the rest” is the only way to survive and thrive in our current economy. The banks are doing what they do best and are banking away what money they have until enough business’s prove that they don’t need the money they are looking for. The only alternative for small business is to concentrate on the core business and outsource the elements of their business that they are not efficient in.
What is outsourcing?
Outsourcing is defined as any task, operation, job or process that could be performed by employees within your company, but is instead contracted to a third-party for a given period of time.
History of outsourcing
Outsourcing was once seen as a strategic tool to gain advantage in the world of supply chain management to gain a competitive advantage over the competition perfect examples of this is the car industry or the computer industry where suppliers were expected to set up distribution outlets within a five-minute drive of where the computers were assembled, it was then moved to the services industry where your local call center can and often does all your customer service, now outsourcing is seen as the only way that some business’s can survive what has been reported as the most difficult period of trading that the world has seen in our current history.
Why businesses outsource?
Business are forced into outsourcing by the continuous drop in demand for their products and services, as demand falls, the number of full-time positions also drops. The business is put in a situation where they can no longer justify paying a person a full salary for what can be accomplished in two or three days. No employer likes to be in the situation where they have a loyal employee who has been with the business for years and has shown a great deal of loyalty over that time period. The employer is now left with the choice of letting the business fail or making the tough decision of making the employee redundant and outsourcing the remaining tasks that the employee used to accomplish.
Businesses that are fortunate enough to be growing in our current economy are also faced with difficult decisions; there is more work to be done than people available to get it done, as mention above banks are not as generous now as they have been in the past, they advertise that they have money to lend but when businesses apply, they are given a different response. In this situation there are two alternatives let the business stifle through lack of drive or outsource the tasks that you just don’t have the time to get done to the standard you wish to achieve.
What can be outsourced?
Administration and Human Resources: There are a number of businesses who specialise in secretarial, payroll processing and HR paperwork.
Transcription outsourcing: Businesses offering transcription services will often include legal notes, emails, newsletters, reports, interviews and press releases to name a few. They will also do the content for your websites, Facebook and other social media sites.
Accounting: Balance sheets, financial statements, billing, auditing and tax returns are some to the services provided by your local accountant.
Information Technology: IT outsourcing gives you access to the best brains in IT at a much cheaper cost. Companies can outsource functions like software and hardware development and maintenance. The IT functions of businesses are the most infrequently used.
Logistics and Distribution: Logistic and distribution companies have networks in place that make them much more efficient at delivering your parcels that you could ever be unless you are Dell and your suppliers have to be within 5 minutes of where the goods are needed.
Knowledge Process outsourcing: There will always be area’s that will have to be outsourced due to professional and legal requirements. Barristers, Solicitors, Doctors, Engineers and industry experts will fall into this category. These all have expert knowledge and know how to charge appropriately.
Sales & Marketing: Activities such as Social Media Management &Strategy, Advertising, Customer profiling, Logo design, Campaign design, Public relations, Communication and event management can all be outsourced.
*Outsourcing allows businesses both large and small to reduce costs that will benefit the consumer and the survival and growth of the business in the long run.
*If you need to outsource your social media management or just require training in social media please contact me,
Arrow Digital Marketing