While some business tasks are better handled in-house (e.g. quality control and other sensitive tasks), you are better off outsourcing some tasks than handling them in-house. Keep reading to learn more.
It’s important to say that outsourcing isn’t new — what could be somewhat new is how and why people are outsourcing nowadays. In essence, why and what businesses are outsourcing is fast changing. According to a 2018 Global Outsourcing Survey, “disruptive outsourcing” is fast replacing traditional outsourcing.
So, What Does Disruptive Outsourcing Mean?
It is simply a type of BPO (Business Process Outsourcing) geared towards leap-forward operational novelties. Majority of businesses that adopt this form of outsourcing do not particularly aim at cutting cost which at one point was almost the sole purpose of outsourcing — but they do so to achieve competitive advantage via organizational agility.
Now, what are those business tasks you shouldn’t bother handling in-house?
Top in the list would include the following;
1: Contractor Payrolling
“There are several ways that a company or business’ compliance functions and payroll can become complicated as a result of hiring contingent workers” — said a payroll provider expert. For instance, if you’ve just won a short-term (let’s say 8 months) federal project, you may need to work with several independent employees.
In order not to complicate your payroll and compliance functions, you should partner with a payroll provider. This way, you won’t have to take on the extra burden of increased state unemployment taxes when the temporal workers complete their tasks and are leaving your company.
If you are just getting started in entrepreneurship, you may consider purchasing a simple task. Is it really hard to purchase supplies? The fact is, the majority of the B2B transactions take hours worth of interaction and communication, as well as logistics. Besides, you have to build a purchasing relationship.
Therefore, by outsourcing purchasing to qualified purchasing agents, you will take the hassles involved in purchasing off your neck. Besides, an experienced expert can help your company save substantial costs that come with purchasing, plus the expert would do better haggling.
3: Payment Processing
Payment is sweet when you are on the receiving end. But, a lot of people don’t want to deal with the hassles that come with invoicing clients, going after delaying payers, as well as processing payments.
That’s not all, handling payment processing in-house has been reported by Tungsten Network Research to be a huge time waster — up to 6,500 hours yearly! Besides, the research also showed that over $170, 000 is incurred on inefficient payment techniques and practices every other year. The message is clear – you should outsource payment processing.
Finally, you should also outsource product innovation and recruitment.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.