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Outsourcing: the Easier Route to Scaling and Excelling for Businesses

11 October
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Outsourcing is the conventional process of assigning out short or long term non-core job functions to outside workforces with the goal of saving money and time.

Businesses assign non-core tasks to individuals, companies or agencies with the required skills. 

The most commonly outsourced tasks include those in fields such as IT, human resource, finance, marketing, sales promotions, administrative and back-office assistance, among others.

The practice has existed as a dependable pillar in the business community since the early 1900s. It is now recognized as a modern-day manpower resource, owing its current wide recognition and distinctive relevance to the extensive use of internet technology. Usually, businesses outsource when their internal workforce lacks the extra special skills required, or, when the cost of developing such skills is unreasonably high.

Broader definition of what outsourcing really is:

Companies, agencies and individuals have for years been tasked with the responsibility of handling business-related jobs for both domestic and international customers. The practice has had numerous benefits for financially deficient small and medium-sized businesses. It not only supplements the internal manpower with outside services and skills, but also promotes business growth with minimal resources.

With the help of technology, businesses can easily and conveniently seek help from outside. This creates time for managing other core activities. Contracted freelance contractors and agency subcontractors may offer one or several of the services listed below:

  • Outbound Telemarketing
  • Inbound/Outbound Customer Service
  • Virtual Assistant Services
  • Web Design> & Development
  • Online and SEO Marketing
  • HR and Accounting Management
  • Admin/Back Office Support
  • Sales and Marketing Support

Benefits of Outsourcing

  • Cost-effectiveness. Many outsourced service contract providers work for significantly less (about 60% less). Payment is done for services delivered with no extra benefits, thus incurring lesser overhead outlays.
  • Controlled & flexible human resources. When companies outsource, they somewhat eradicate provision outlays for research, development, marketing, and distribution. Outsourced agencies have all the required freelancers on standby, providing a reliable, flexible and controlled team of experts. It also helps internal employees as this lifts the pressure of handling unfamiliar tasks.
  • Time-effectiveness. Freelancers and agency subcontractors have proficient work processes with good planning. Work is streamlined, hence, improving the quality of results and reducing or entirely dismissing the trial and error phase. This shortens the interval between development and launch to the market.
  • Expertise. By hiring experts, a business is guaranteed that basic and crucial details of the project are in good hands. Other core activities can be addressed since managers now have experts who are able to handle the job with fewer mistakes.
  • Time zone (practically 24/7 presence). Hiring people from overseas ensures that someone is continually monitoring and working on projects and systems. Hiccups can then be handled at any project stage.
    Stay focused on core business. When outsourcing, the company’s management professionals can manage the bulk of the company’s resources and focus on more important and broader company issues.
  • Future partnership & expansion. Outsourcing from other countries is a profitable way of expanding a business beyond its boundaries. This opens up the business, reaching more customers and investors.

Possible Disadvantages of Outsourcing

  • Difficulty with management. You must be prepared to be called round the clock to manage projects braving cultural and time differences.
  • Controlling quality. Prepare a clear set of requirements, expectations and processes guidelines to set a specific standard of quality for products or services that you need delivered.
  • Setting liability criteria. This can be a complex relationship. Both parties may face difficulties in finding common ground that will determine the extent of liability for each of the different parties involved.
  • Computing taxes. This can be a disadvantage for those that are continuously reliant on outside workers to support their business operations. Multinational contractual arrangements can trigger different taxation across countries and complicated tax scenarios.

How to manage distributed teams – tips for success

According to a forecast released by Gartner Group, it is predicted that within 3 years, 25% of contracts between businesses and outside workforce providers could get cancelled or renegotiated. This could create a lot of uncertainty. To prevent this, both parties need to uphold effective relationship management strategies. Senior management teams from both sides need to put forth effort to constantly manage the working relationship.

Both companies’ senior partners should clearly define their procedures, such as an escalation of tasks, issues, and queries. Discussion of the relationship should be done at regular intervals. Also, the workers on the operational level should be met to address the reasonability of the contract in practice. Open communication will help resolve issues encountered during the working relationship. Forming an implementation agreement on crucial changes to ensure mutual satisfaction is also necessary.

Zazmic has a unique brand of outsourced solutions

Zazmic’s multi-platform offers full-stack CTO, CFO & CMO services to early stage and Fortune 500 companies. We provide 24/7 support which is available globally through our experienced teams of experts in software development, marketing and finance. We have offices that span from Europe to South America. By personally managing our teams’ responses to customers’ requirements and preferences, we make sure clients receive customized expertise.

Zazmic also carefully considers its projects by scoping the project requirements and creating clear and easy to understand execution plans to ensure the integrity of delivery. Our company’s U.S. headquarters maintains all the contractual agreements with its partners. We readily provide requirements clarification pro bono and sweeten the relationship with perks like free websites and marketing support. Continued client success is built on the framework of the company’s goals to grow, innovate and collaborate along the way.

Additionally, Zazmic regularly supports women’s causes, and actively promotes women entrepreneurs with the spirit to conquer. We invests in companies that have a solid team and business concept. Learn more about our unique solutions and be imbued with the same values that we promote. We have now expanded our services to cover finance, digital marketing, and legal functions.