5 Reasons To Outsource
So the good news is your company is experiencing growth; the bad news is you don’t have enough revenue to build a support team. You’re putting in long hours in an effort to answer support questions and keep on top of all the myriad of details of running your business. Perhaps you have dropped the ball a few times and upset customers because your support wasn’t as thorough or as fast as it needed to be.
A good solution in this scenario is to outsource a support team. There are many cost-saving benefits to outsourcing. Let’s take a look at the top five:
- Cheaper Labor: Outsourcing doesn’t necessarily mean hiring someone from India to provide your customer support. While that is an option, there are many reputable companies in the USA providing highly skilled support people. Look for companies based in areas with a lower cost of living than where you are located to save money. It’s more expensive to hire someone in Boston than Tulsa.
- Shared knowledge base: An outsourced firm works on problems for many different companies, and can apply that knowledge base across all of them. This streamlined effort reduces costs if you run into a systems issue, because they’ve dealt with a similar or identical scenario and can quickly resolve the problem, rather than needing to start from scratch to troubleshoot it.
- Cost of hiring, retention and overhead: Consider how much time it takes to hire someone from the time you place the help wanted ad, interview, and train them. Then you have the cost of benefits, and time spent managing that employee. Retention is a huge expense; the cost of losing an employee is often equivalent to at least 6 months of their salary, according to this article. You need to factor in the expense of office space, computer equipment, software, phone systems and other tools they need to do their job. An outsourced firm handles all of those expenses. When you first look at using an outsourced firm, it may appear that you’re paying more than if you hired directly, but when you take a hard look at the costs related to hiring, retention and your overhead, you’ll actually be saving a lot of money.
- Changing needs means changing staffing levels: What happens when a new process is being implemented and you require more hands on deck? It’s very challenging to hire and train people quickly enough in that scenario to make it realistic. Or consider the consequences of a downturn; you’ll have to fire the people you’ve just spent so many resources on. An outsource firm can readily handle the changing needs of your company and can scale up or down for the level of support your company really needs, saving you money long term.
- Focus on your strengths: Identify what you do really well and delegate or outsource everything else. Doing something you’re not good at will take you more time and effort than having it done by someone with that skill-set—and that is taking you away from those income opportunities that you need to be focused on to grow. Why spend extra time doing something you aren’t good at and don’t enjoy when you have the option to outsource it and make your business run more efficiently? As they say, if you don’t have an assistant, you ARE the assistant. Focus on your core competencies and watch your business grow.