The business process outsourcing industry in the United States is worth $131 billion – as of 2019. Since 2014, it has been growing 4 percent year over year.
Outsourcing is indeed a popular service, but if you’ve never outsourced, as is the case with most small business owners, you might be wondering what the fuss is all about. These services save you money and can give your business a real competitive advantage in the marketplace.
If you’re looking into outsourcing for the first time, you might also be wondering what business functions to outsource, and which ones to retain in-house.
We’re here to help you rest your worries. Here’s a list of the functions that you need to outsource.
Table of Contents
1. Marketing
Many small business owners do marketing in-house because they believe marketing is an easy task. What’s so hard about creating a poster anyway?
Well, if you belong to this school of thought, you’re probably making a mistake that’s costing your business. Marketing, especially in modern times, is a specialized skill. There are so many digital platforms that mastering what works for each requires a whole university course.
This is why you need to prioritize outsourcing your marketing function. When a marketing agency takes over your marketing, you’ll see real results in terms of increased sales and brand awareness.
2. IT Support
An increasing number of small businesses are now embracing technology. For instance, about 90 percent of SMBs use digital tools for communication. 80 percent use tech tools for internal operations, logistics and supply, and sales management.
However, what these stats don’t say is several businesses are encountering big challenges managing the tech and getting the most out of it. In fact, many small businesses are vulnerable to cyberattacks.
To make the most of your tech, it’s best to outsource to a managed IT service provider. Check out these EDI managed services to learn more about electronic data interchange operations and how outsourcing them can benefit your biz.
3. Recruitment
Do you know how much a bad hire will cost your business? About $240,000 in direct and indirect expenses.
Yet, most small business owners still take on this risk when they resolve to handle recruitment in-house. Sure, recruiting doesn’t sound like a big task: create a job ad, get applications, review them, conduct interviews, and have your pick…. Easy?
Only that it’s not that straightforward. It takes a recruitment specialist to identify the right hire. You don’t have this expertise. This is why you should outsource the recruitment function to a recruitment agency. Canada PEO that outsources and handles recruitment for highly skilled workers in Canada.
4. Payroll
As your business grows and the team expands, handling payroll starts to become a challenge. If you have over 10 employees, you should no longer be processing payroll in-house. A payroll firm can take over the function so you can focus on other tasks that need you the most.
Outsource These Business Functions
Outsourcing business functions might seem like a costly option: why pay someone to do something you can do yourself or in-house? But when you look at the bigger picture, outsourcing is good for your business. The benefits far outweigh the costs, and now you know the functions you should be outsourcing.
Stay tuned to our blog for more small business tips.
