According to a 2016 Deloitte outsourcing survey, there are two chief gaps small businesses are hoping to cover with outsourcing: overspending and enhancing focus on core business objectives. Let’s take a closer look at how companies can leverage local outsourcing to accomplish both.
Gap #1 – Overspending. Companies use local outsourcing to:
Increase efficiency. No matter how talented or resourceful your small business is, there are functions you will not have the expertise to do cost-effectively. Distribution, for example, can be done at a significantly lower cost by outsourcing with suppliers that already have the functionality and economies of scale in place.
Reduce labor costs. Small or young companies sometimes fall in the trap of over-hiring to cover lower-value or temporary tasks and projects. It’s expensive to hire, onboard and train new employees. Outsourcing to a specialized workforce will frequently reduce those costs, and likely produce a more desirable outcome.
Find a better way to get things done. Some tasks take on a life of their own and quickly become a significant time and money drain. For a business to grow, it must scale up rapidly to meet escalating demand. Local outsourcing companies have the infrastructure and workforce in place to streamline those processes and cut costs.
Gap #2 – Business Objective Focus. Companies use local outsourcing to:
Pay attention to the right things. Wouldn’t it be great if your company could oil every wheel necessary to keep it moving in the right direction? The fact is, however, all businesses have limited resources. Priorities have to be established and lines must be drawn. Local outsourcing helps businesses spend less time on marginal tasks and shift the focus to high-value, long-range strategic activities.
Create more value. It’s easy for businesses to be caught up in the pursuit of cutting costs. After all, maintaining cash flow is a mainstay of any good company. However, improving the customer experience, not merely cost-saving, enhances value. Outsourcing helps businesses free up internal resources for heightened customer focus.
Reduce risk. Managing growth is an area of focus for any business but equally important is mitigating risk. There’s inherent risk in every aspect of the business investment. Local outsourcing providers manage and take on the risk associated with their business function. That’s one more non-revenue producing activity business leaders can check off their list.
Stretch themselves. Many small companies have growth objectives, but they don’t have the cash flow to get there quickly enough to outpace the “big” guys. Outsourcing can give small companies a big boost with capabilities they couldn’t afford to establish on their own.
Outsourcing saves money and time
It’s easy to see how local outsourcing can help cut costs. Business leaders who don’t consider their time as a real cost, however, may be underestimating the potential contribution of outsourcing to the bottom line. You may want to consult with an experienced partner that can help you uncover all the “gaps” you could be filling with outsourcing.
The Ohio Valley Goodwill Industrial Services business development team can help you in areas such as —
…and much more! In our many years of business, we have partnered with some of the top brands in Cincinnati, Northern Kentucky, and Southeast Indiana. Let’s meet and talk about what Ohio Valley Goodwill Industries can do for your business, too!