Outsourcing Service Provider: What Should You Outsource?

Outsourcing Service Provider: What Should You Outsource?

Daven Michaels

Daven Michaels

New York Times Bestselling Author, 30-year business veteran, and Executive Chairman of CurrentC Group.

As more and more businesses seek to cut back on overhead costs, leveraging outsourcing service provider has become essential especially when it comes to certain business processes. According to the Hackett Group, the leading outsourced jobs include information technology, customer service, financial service, and human resource management. According to the estimation in the Hackett Group’s December 2010 Report, additional 1.3 million jobs were outsourced in 2014. Virtually all aspects of business and processes can be outsourced depending on your area of need and goals.

So, What Should You Outsource?

Professional Services

Professional services are becoming increasingly outsourced. Typical examples of such services include legal, accounting, information technology, purchasing, as well as other specialized services. These common aspects of professional services are being increasingly outsourced due to the inherent benefits such as potential cost savings. In addition, a business is able to access high quality resources by only paying for services actually provided. In return, this leads to significant reduction in a company or business’s overhead costs.

Manufacturing Services

Also, most companies are using outsourcing service provider increasingly to handle different aspects of manufacturing. Usually, manufacturing outsourcing services are really industry-specific. A typical instance is where a company such as an auto manufacturing company embarks on an outsourcing arrangement for making and installing windows in their entire automobile models. The benefits of such outsourcing arrangement include reduced assembling time as well as huge cost savings. However, the major concern sometimes for this type of outsourcing service is quality issues. But this has been proven to be no problem as long as the manufacturer insists on hiring the most qualified outsourcing provider for the job.

Process-Specific Tasks

A company or organization can also outsource services that are specific to a particular process or procedure. For instance, (still using the automobile niche as an instance), it cheaper in many cases to have a third-party company (outsourcing provider) manufacture different components or parts. the benefits of this type of outsourcing arrangement include simplified assembly process, reduced costs, and reduced time duration required to produce a complete component.

You can also find the process-specific outsourcing services in other industries aside from the automobile manufacturing industry. For instance, it is a common practice to outsource specific operation aspects to a specialized third-party company (outsourcing service provider) in the service industry. For instance, a communication company can outsource their customer service to a specialized third party, while focusing on the production of communication products.

Operational Activities

A company can also outsource operational activities. This is a more common practice in the manufacturing niche compared to other sectors. There are usually tons of specific operational activities or processes that come with manufacturing, making it needful to contract qualified outsourcing companies for the tasks. For instance, a manufacturing company can outsource equipment repair and maintenance to an outsourcing provider with special skills for the specific machine or equipment. Other examples of operational activities that can be outsourced include property management, facilities maintenance, landscaping, and cleaning.

From the foregoing, it is clear that a company or business can leverage an outsourcing service provider for virtually every aspect of business.

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 build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

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