Outsourcing is no longer just seen as a cost-effective measure, it is now considered a strategic move to propel businesses forward. This belief has grown exponentially during the last decade that outsourcing was said to be the biggest growth hack of 2015, according to a survey carried out by Designhill’s Design & Branding.
Outsourcing as a Growth Hack Strategy for Businesses
Growth hacks, strategic tricks used to grow companies or move them forward, have always been used by businesses and vary from time to time, depending on trends and the needs of various industries across the globe. For small and medium enterprises (SMEs) and startups, partnering with a qualified and trusted BPO company for outsourcing was one of their biggest growth hack strategies for 2015. In fact, a survey cited 90 percent of businesses consider outsourcing as crucial to their growth. Thirty-six percent of companies outsource for innovation while 37 percent outsource for growth or expansion.
As it is the case with SMEs and startups, limited financial fundings can be hindrances for growth and expansion. By choosing to outsource carefully selected business processes, they are strategically growing their company without having too much risk all the while still maintaining or even increasing a profitable bottom line.
Given these statistics, we predict that outsourcing will no longer be just a trend but the norm for businesses in the years to come:
- Fifty-three percent of marketing executives plan to outsource their marketing (Hubspot.com)
- Seventy-eight percent of SMEs believe outsourcing gives them a competitive advantage. (Elance)
Why Outsourcing is Your Best Growth Hack Strategy for 2016
1. Outsourcing is a cost-effective measure.
The Elance survey of 837 US small businesses cited three benefits of outsourcing: cost savings, access to a bigger (and better) talent pool and a more efficient hiring time. And while it is true that outsourcing saves you as much as 60% on overhead costs, only 27 percent of companies choose to outsource because of this reason alone. However, as a business startup, saving money is crucial to keeping the company operations running (and thriving) so outsourcing becomes a wiser, strategic and more practical business decision.
2. Outsourcing increases business productivity.
Outsourcing can increase productivity and give you an edge over competition. By choosing to outsource business functions that aren’t part of your core business but are necessary for business operations, you are freeing up so much time so you can concentrate on bigger things.
Also, by outsourcing to a third-party provider, you are choosing to partner with an expert in their fields. This increases your productivity both ways.
3. Outsourcing expands your talent resources.
You don’t have to worry yourself about looking for, hiring, training and compensating talents in-house. You simply have to outsource them! Do you need help or advice on dealing with taxes? Outsource your tax preparation and audit to a financial firm. Do you need to expand your business to go online? Hire a website developer to build your site. You don’t necessarily need to hire them as part of your staff. These providers are businesses on their own, and it is their specialty to provide these services.
4. Outsourcing is low-risk.
A common misconception is that outsourcing exposes your businesses to more risk, especially with private information. The truth is, outsourcing to a qualified provider protects your business. A perfect example is outsourcing your financial processes (accounting and payroll). When you outsource this function, you don’t have to worry about keeping tabs on the latest tax updates or deadlines – the outsourcing company will take care of that for you. Outsourcing IT security management is another example. Your IT security is essential in this age of cyber threats and attacks. Again, staying current is a challenge, not to mention expensive as you need to continuously update, upgrade and replace programs. Outsourcing enables you to partner with the best experts and save you money with equipment and software programs.
Outsourcing remains to be a key growth hack for businesses, large and small. As we enter 2016, we predict businesses in every industry fully embracing this strategy to innovate and grow their businesses.