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Is outsourcing a good solution for your business?
Outsourcing is a concept that everyone is familiar with, but not everyone can explain exactly what it means. People who have concrete experience with it are often fans of the concept. Those who have not yet experienced it up close are often critical. It is therefore a challenge to convince people that outsourcing is indeed a powerful solution for their company or organisation in full growth. Very often, the term outsourcing still has a negative connotation. Why is this? And above all, is this justified?
Why does outsourcing carry a stigma?
The reason why people often have a rather critical attitude towards the concept of outsourcing can be explained on several levels:
- To begin with, outsourcing is often wrongly linked to taking jobs or shifting entire departments abroad.
- People often have a negative attitude towards something they do not know. That is why outsourcing has a more negative connotation in networks where outsourcing is not practised.
- People often think that someone in employment is more loyal to the company and more in touch with the subject matter.
The first two points are mainly perceptions. Outsourcing does not mean looking for cheaper labour in a country with lower labour costs. The last point is more a case of person-to-person. Good salaried people are crucial for your business, but that does not mean that using quality outsourcing in addition cannot be a good option.
Crucial for your business, but that does not mean that using quality outsourcing in addition cannot be a good option.
The benefits of outsourcing
Outsourcing is always a bit exciting at the beginning. You put your trust in a partner, while you are still at the beginning of a cooperation. Yet you will soon see that, with the right partner, this way of working can bring enormous benefits:
1. Outsourcing is cost-effective
Many people still think that someone who, say, works full-time for your company under an outsourcing agreement costs more than an average employee. This certainly does not have to be the case. Rather, think of it as being able to deploy the right resources to achieve the set objectives. Besides, the financial aspect is a lot simpler: The person works an agreed number of hours a week for your company and in return you pay the invoice at the end of the month. Simple and clear. With an employee in paid employment, there is of course a lot involved, think of a lot of administration, taxes, fringe benefits, thirteenth month, holiday pay, you name it.
Deploying the right resources to achieve the set objectives.
2. You bring in expertise and experience
Of course, there are positions and functions where you can let people with less experience blossom into loyal workers with more and more knowledge every year. Yet in some positions, you want that expertise, knowledge and experience right away. Outsourcing is therefore the way to get the right people for the right position. People with a list of references and a backpack full of experience, who are often very expensive to employ, can still have the same input in your organisation through outsourcing.
3. You maintain continuity
Again, permanent salaried staff is absolutely necessary for a company. But every entrepreneur knows: Employing someone equals paid and unpaid leave, pregnancies, parental leave, temporary inability to work, you name it. All of these things are good. Your people deserve it! On the other hand, this does not make it any easier when it comes to planning. With outsourcing, you are much less dependent on these unpredictable factors. Should someone, who works in your company a few days a week via outsourcing, suddenly drop out, then the solution and replacement are quickly guaranteed.
4. Outsourcing makes your company resilient
2020, a year in which everyone realised that as an entrepreneur, you sometimes face unexpected changes. Nobody could have predicted a year ago that the market would be so different now. Some have had to let go, with pain in their hearts, of some of their good people. On the other hand, we also see that this creates new trends. More and more employees are not going back to their old jobs but are starting on their own. For companies, it then becomes interesting to fill some of these positions through outsourcing, in order to be better prepared for the next big change.
By taking away all peripheral activities and focusing on the task at hand, you can ensure faster, more enjoyable and more efficient growth.
5. Focus on the core tasks
Finally, outsourcing is a way to keep the focus on the content and what is important to you. By taking away all peripheral activities and focusing on the task at hand, you can ensure faster, more enjoyable and more efficient growth. People who work for you through outsourcing do their job and at the end of the month you pay the invoice. Other than that, they are not part of your company. Of course, these people are involved and loyal, but administratively they provide a lot less 'busy-work'.