Everything about outsourcing on this page:
Is outsourcing the right solution for your company?
Outsourcing or externalisation is a concept everyone knows, but not everyone can explain exactly what it is. Those who have outsourced projects are often fan of the concept. Those who have not, are often sceptical. It is challenging to convince people that outsourcing is a powerful solution for their company or expanding organisation. Quite often, externalisation has a negative connotation. Why is this? And more important, is this justified?
Why is there a stigma on outsourcing?
There are several reasons why some people tend to be sceptical about outsourcing:
- To start with, outsourcing is often wrongly linked to causing job loss or moving entire departments abroad.
- In general, we don’t like what we don’t know. That is why outsourcing is often considered to be negative by networks that don’t use externalisation.
- Employees are often considered to be more faithful to their employer and more in tune with the product or service.
The first two points are mainly about perception. Outsourcing does not imply that a company is looking for cheaper labour in a country with lower payroll costs. The last point is on a more personal level. Having a qualified team on your payroll is crucial for your business. High-quality outsourcing can help to fill in the gaps in your team’s expertise.
Crucial for your business, but that does not exclude qualitative outsourcing.
The advantages of outsourcing
Outsourcing may cause a bit of anxiety at first. You trust a partner you have only just started working with. But with the right partner, the anxiety will disappear with the realisation that this way of working has a lot of advantages. We have listed 5 reasons why externalisation is an excellent idea.
1. Outsourcing is cost-efficient
It is a common misunderstanding that outsourcing is more expensive than a fulltime employee. Very often, that is not the case. A huge advantage of externalisation is the financial aspect. You agree on the number of hours the freelancer works for you and in exchange, you pay a monthly or quarterly invoice. Simple and transparent. Limited administration, no taxes, extralegal advantages, 13th month or holiday allowance as you would pay for an employee on your payroll.
You agree on the number of hours the subcontractor works for you and in exchange, you pay a monthly or quarterly invoice. Simple and transparent.
2. Expertise and experience
In every organisation, there are positions where less experienced employees can grow and become experts in their field while staying loyal to the organisation. But there are times where you need that expertise, know-how and experience right away. Externalisation is the perfect way to find the right person for the right job. Someone who is invested in your organisation and comes with a list of references and a wealth of experience that might be unaffordable otherwise.
3. Continuity is guaranteed
Entrepreneurs know their team is the backbone of their company. But every entrepreneur also knows that employees are entitled to holidays, maternity or parental leave, sick leave, and so on. We are not saying this is bad. On the contrary, your team deserves to take time off work. However, this makes planning a bit more challenging. When outsourcing, an entrepreneur is less dependent on unpredictabilities because a replacement can be guaranteed on a short term.
4. Outsourcing makes your company more resilient
With the recent pandemic, every entrepreneur has encountered unexpected changes. A year ago, nobody could have predicted that the market place would look so different. Some entrepreneurs had to lay off some of their most valued employees. On the other hand, the pandemic has also started new trends. Employees do not return to their old jobs but set up their own businesses. Furthermore, companies tend to fill vacancies with an outsourced workforce to be more agile when the next highly impactful change happens.
By removing all peripheral activities and focussing on the core activities a faster, more comfortable and efficient growth can be guaranteed.
5. Focus on the core activities
Last but not least, outsourcing helps to stay focused on the content and on what is important. By eliminating all peripheral activities, a focus on the core activities can guarantee a faster, more comfortable and efficient growth. Outsourced employees can focus on activities you hire them for, they are committed and loyal but, apart from the monthly invoice, they require less busy-work and administrative hassle.