You now have the idea what is the meaning of outsourcing, what does outsourcing do, and how does outsourcing work. With all the advantages in outsourcing parts of your business functions, there will be no questions like, “Does outsourcing work?” or its relevance.
To further this outsourcing explanation, here are some distinct business areas that you can outsource from external service providers.
Company and business administration is simply composed of day to day operational activities. More often than not, employees spend too much of their time focusing on admin tasks, leaving little to no time in developing the core aspects of the business. It is why most companies start to outsource some of their administrative functions.
To fully understand the meaning of outsourcing services in the administrative side of the business, here are the common admin tasks that you can outsource from a third-party service provider.
• Data Entry
Typing and data entry works takes a lot of employee time. Instead of spending hours of the day typing your business data, a third-party service provider can do this job for your business. Your business data can be arranged and filed without allotting many hours to do it.
• Travel Management
Having a person that focuses on your travel management can come in handy, making sure that you have the necessary reservations and airline tickets you need. While there is some software that can help with this, having someone makes it easier especially when there are an issue that has to be resolved.
Running a business is hard and would usually keep you busy. Having someone that arranges and organizes your schedule always helps. You don’t have to worry when there are people you have to call or places you have to go if you have someone that regularly reminds you of these schedules.
Typing jobs, especially the bulk ones, can be time and effort consuming. Instead of doing this in-house, typing can be outsourced outside your company, freeing up the time to focus more on the efforts to growing the business.
• Personal Assistant
Hiring a virtual assistant is quite the same in duplicating yourself. This way, you can be more focused in attending to the more pressing issues of growing your business.
• Data Processing
Data management and processing is not an easy task. Whether it is as simple as entering data on Microsoft Excel or Word, it is usually time consuming. Fetching data whenever you need them can also take so much time, especially if you don’t have it organized. Outsourcing data processing for your business makes everything easy as you would have all documents organized.
What are outsourcing services when it comes to improving customer support for a business?
• Sales Moderation
Sales moderation is a technical business function. If you are no expert in this area, it would always help to have an expert do it for you.
• Customer Service
Customer service and support is among the common outsourced tasks, especially with the growing number of complaints, concerns, and needs of the customers. It is a smart idea to have someone or a system that is focused on keeping the customers engaged and happy since they are the most valued asset of any business.
• Live Chat Support
Live chat support systems can also be outsourced as the same purpose in outsourcing customer service.
• Community Moderation
For companies and businesses that has a rapidly increasing community online, outsourcing can be an excellent option. Instead of doing it in-house, having third-party experts handle this technical function can be convenient, saving you both time and expenses in training current employees or hiring new ones.
Financial and Accounting Duties
It’s always better to keep your financial data and accounts organized all the time than trying to catch up on the duties at the end of the year when you need them. It can be time-consuming and tedious to scramble when the tax season comes. However, maintaining an organized book takes time and focus and will usually push you to hire an in-house accounting team which can be an additional labor cost.
Fortunately, there are some financial and accounting duties that you can outsource. Here are the top outsourced services for accounting and finance.
Working with a bookkeeper outside your business is so much easier, especially with the available cloud-based accounting software these days. It would even be easier to outsource a professional for this specific business function. You can simply send your business account data that you want your bookkeeper to organize and they will send you the reports you want.
Outsourcing the services from a bookkeeper also eliminates the hassle when it comes to taxes.
Choosing to outsource your business’ invoice processing can save you all the hassle. It can provide your company with a better business operation by giving a regular, accurate, and timely invoice management.
• Accounts Payable and Receivable
One of the best ways you can reduce costs and expenses in your business is through invoices, particularly in both accounts payable and receivables or AP and AR. Outsourcing helps companies improve their compliance in terms of internal controls, saving a huge chunk of money. It also helps make streamlining AP and AR conveniently, without spending huge hours every day doing the job.
• Financial Reporting, Analysis, and Planning
Financial reporting can be tedious especially if it’s not streamlined and organized well. It can also take a lot of time especially when preparing different kinds of reports and analysis to identify how the company is doing financially. To make this process seamless and efficient, outsourcing financial reporting services can be a great option.
With outsourcing, you can save time that is usually involved in analyzing financial documents and preparing reports. It also saves you from purchasing a financial reporting software.
IT Operations and Management
What is outsourcing in IT? Here are the common IT business functions that can help you understand more what outsourcing means in IT service functions.
• IT Support
No matter what’s the size of your business, glitches in your system like crashing servers and website, corrupted date, and malware attacks can be a pressing issue. These are instances when an outsourced IT support system can come in handy. It is also much cheaper than having an in-house IT team. Achieving security is something what is outsourcing in IT means.
– Network Admin
Aside from a secure system for your business, outsourcing a network admin can also be advantageous in maintaining a seamless process within the company.
• Website Design
An excellent website can make or break your online presence. If you are not an expert, website design can be quite a challenge, so hiring a professional can be helpful. Not only would it save you the time and energy, it would also give you a quality output – a website that can provide you a high customer satisfaction.
• Graphic Design
Unless you are a professional in graphic design and digital presentations and you have so much time in your hands, outsourcing this task can do you a lot of good. A slideshow designed by a professional can go a long way; it also allows you to save up time in rehearsing the presentation.
• Web Development
It is always a great choice to leave web development and maintenance to an expert. Business owners should be more focused in growing the business and ensuring the quality of products and services instead of consuming a lot of time in maintaining an e-commerce website.
• Software Development
Outsourcing software development can be another advantage for a business in terms of improving one’s competitive edge within the market. It’s a strategic approach for every company. Instead of the costly in-house software development, outsourcing makes an obvious choice in terms of cost-effectiveness.
Lack of in-house expertise in this area is another problem and training employees to be competitive in this regard can take a lot of time and money. On the other hand, with outsourcing, you have a guarantee that an expert or a professional is doing the job for you.
A lot of entertainment companies, small or large corporations, usually outsource animation services. One of the main reasons is to cut costs, contracting pre-production tasks from studios overseas where costs are cheaper.
Outsourcing storyboards and creative design can provide a lot of benefits. Aside from cutting time and costs in doing it in-house, outsourcing also provides access to skilled professionals outside of the company. You can also take advantage of their international exposure and excellent infrastructure that are otherwise not available in your company.
Hiring and training new and existing employees can often be a rigorous task for the human resource department. Usually, it takes so much of the employees’ time that they can otherwise use to give attention to core business functions.
This is why human resources are among the common tasks being outsourced. Here are some examples on how you can define outsourcing jobs in HR business functions.
• HR Support
Outsourcing to a human resource support can help a business manage a wide range of HR functions that you might otherwise contract from multiple third-party service providers. That includes payroll processing, recruiting, employee training, and benefit plan management.
• Medical Billing
There are a lot of advantages in outsourcing medical billing. Every reason works toward making the entire billing process easy and convenient. Instead of spending a lot of time taking care of the billing documents, employees can have more focus on their patients. Hiring a professional to do the process also helps reduce billing errors and ensure billing compliance.
• Insurance Support
Outsourcing insurance support helps drive innovation in business processes, as well as greatly improves customer service.
Sales and Marketing
• Brand Development
Marketing and developing the brand of your business can take up a lot of time and effort. Since time is a precious commodity when running a business, having an expert can come in handy. An expert in this field can also help in developing a better strategy to build brand awareness.
• Press Release
Press releases can be used by businesses to gain media coverage or for search engine optimization purposes. However, it takes effort given that a press release can be either good or bad and the latter will be ineffective, thus, a waste of money. Outsourcing press release services from someone who knows how to do it right can help your business do a great deal.
• Online Marketing
– Social Media Marketing
Social media marketing is extremely helpful and advantageous in keeping the business’ relationship with current customers and connecting to new ones. However, it can often be tedious as you need to regularly post social media updates.
Finding a tech-savvy professional who can manage the company’s Facebook, Instagram, Twitter, Pinterest, and other social media platforms can save you both time and energy.
– Content Marketing
Aside from social media, creating quality content is also an excellent marketing strategy to bring your business in the market. But again, it takes time and effort to create and produce contents that will make you relevant in your chosen niche. Fortunately, you can hire a content writer or a content marketer to do this tedious job, making outsourcing article that much easier.
– SEO and PPC
Simply making content would not bring your business on top. Especially if you want to be relevant in your field or if you want your brand to appear on the search engine result’s first page, you have to be familiar with the SEO and PPC marketing strategies. Training an employee for this job takes time and money. A more cost-effective option is to find a professional that can optimize your content for your business.
– Email Marketing
Any type of marketing campaign also takes a lot of time and effort and email marketing is not an exception. Fortunately, you can outsource this marketing task to someone outside your business, someone who knows how to do it right.
What is outsourcing business function means to back office support? Here are some of the examples on what backoffice jobs you can contract from external service providers.
• Lawyers and Paralegals
When it comes to cost savings, is outsourcing legal services an excellent move? With legal services outsourcing, firms can lower their costs through labor arbitrage or the difference between the labor costs of in-house legal team and outside vendors.
• Real Estate
What outsourcing in real estate, it can ensure that you have someone that is expert and can give you best in class solutions especially when optimizing space for your business.
• Management and Administration
Business management and administration involves a handful of daily tasks and usually takes the focus of employees from core business functions. Having a third-party service provider to manage these taxing tasks, you will be free to focus and improve control on growing your business.