Outsourcing used to be a widely misunderstood concept. Many business leaders felt like outsourcing meant expensive, low quality work, overseas call-centers, and only beneficial for larger corporations. In the last five years smart leaders have come to realize that outsourcing is the key to growth, especially for multi-unit companies. In fact, 78% of business all over the world feel positive about their outsourcing partners. Here’s why.
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1. Time and Resources
While hiring and managing an in-house team has it’s advantages, outsourcing continues to prove itself as the solution for current business challenges. When you consider business functions like Finance and Accounting, Payroll, or Benefits Administration, you quickly identify that these operational processes take up time, resources, and focus. Leaders need to be agile, proactive, and ready to overcome the challenges of the day. This is difficult to do when they’re spending all of their time managing staff, processes, and technology, and completing low-value tasks. Outsourcing operations allows leaders to focus on the things that matter most, and let someone else do the back-office work.
2. Labor Shortage
Before the pandemic, it was difficult to find expert team members who knew the industry well. Controllers, accountants, tax specialists, benefits specialists, and payroll specialists are needed to efficiently operate a multi-unit business. Now that we’re facing a labor shortage, this expertise is even harder to come by , especially staff with industry-specific experience. Outsourcing companies already have this staff in place. Leaders who leverage outsourced services no longer have to hire, train, and manage a large core team to complete business processes.
Having an expert outsourcing team takes the burden off of your core in-house team. Your in-house team can focus on higher priority items that move the company toward the overall goal, which will ultimately help increase staff moral as they feel they have a true purpose in their role. Outsourcing also prevents burnout and frustration, increasing retention and reducing turnover.
Rising costs continue to be one of the biggest challenges companies are facing. Outsourcing reduces capital expenditures in a number of ways. Most outsourcing companies are located in a labor market that is more economical, saving costs on labor for an in-house operations team. Outsourcing also provides access to high-end technology that companies otherwise wouldn’t be able to afford. There’s also the reduction in data entry errors and regulatory concerns. These types of errors can cost companies thousands of dollars. Outsourcing reduces the risk of costly errors.
4. Data Security
Data security is top of mind for businesses around the world. We’ve continued to see a rise in compromised data across various industries. Outsourcing providers have the resources to keep data secure and protected. Aside from strict data security processes and policies in place, providers have the technology and IT support that most multi-unit companies do not.
5. Reliable Data
Most companies struggle to receive reliable data from their in-house systems. Financial data is often outdated or behind and disparate systems cause blind spots in the overall operations. Business leaders have a hard time making strategic decisions to propel the organization forward. Companies who provide Finance and Accounting or Operational Reporting services know how to get data out timely and delivered in a format that works best for leaders.
6. Customer Focus
In order to stay competitive, companies have to focus on the customer experience and delivering the best customer service. That’s hard to do when you’re focused on operational processes and managing staff. Outsourced services take care of operations, so leaders can focus on their customers and their service.
7. Scale Quickly
When you outsource operations to an expert provider, it opens you up to focus on the priorities where you and your team excel. This type of business model is tailored to your needs, allowing you to scale rapidly. While the in-house model can hinder you from growing too quickly, outsourcing provides a platform for you to grow quickly upon. With the team and tools already in place, you can stay focused on your next growth opportunity.
Outsourcing is the key to growth for multi-unit companies. The outsourcing model is set up to help companies scale quickly. With outsourcing:
- You already have the expert team in place
- You gain access to enterprise technology solutions
- You realize cost savings with less overhead
- You stay ahead of changing regulations and compliance standards
- You have robust data security in place
- Your financial data is reliable and timely
- You’re able to focus on your customers instead of in-house operations
- You’re able to scale more rapidly than with an in-house operating model