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Why you should think about outsourcing for your business

Why you should think about outsourcing for your business

Outsourcing can be a great tactic to help accelerate growth and quickly bring in expertise for a specific function that would otherwise take a long-time, and cost a lot of money, to bring in-house.

It can also come with some risks (perceived and real) usually around loss of control or quality assurance.

On the whole though, with some focus and strategy there is far more upside to outsourcing than potential downside.

Cost savings

Outsourcing is usually more cost effective than hiring in-house and allows you to save on fixed costs like salaries, benefits, tax and insurance, training and equipment.

Outsourcing can also be more scalable and flexible on costs as you usually subscribe to a monthly cost relative to the amount of service you’re using. If you use less you can scale your costs down, and then scale back up as demand rises and you need more support.

This is compared to fixed staffing costs where you pay the same regardless of how busy you are.

If you compare the costs of a call answering to hiring a receptionist (for example) our service averages around £200 a month while a full-time receptionist with the same level of experience as our PAs can cost as much as £30,000 a year.

Instant access to expertise

The average time to recruit a new position in UK is around 42 days (according to the society of human resource management) and this can usually come with some costs if you use a recruitment firm.

And in the time you’re waiting and trying to hire someone you have a hole in your business that needs filling and that could be causing things to fall through.

If it’s something as customer facing as telephone answering, then not having someone to answer your customers calls can lead to bigger problems down the line.

Outsourcing on the other hand can be much quicker and is usually just down to the time you want to do your due diligence on the service provider you’re looking at.

But even on a longer horizon it’s normally much quicker than 42 days. This means that by outsourcing you can get access to expertise much quicker than you could if you’re hiring in house.

Plus, you don’t have the additional time it takes to bed an employee in and train them.

Access to Expertise

That brings us onto the next point. While the function you’re looking to outsource isn’t the core function of your business, it is the core function of the business you’re outsourcing to.

Which means you can get access to expertise in the area you need help with that would otherwise be too difficult or expensive to hire in-house.

Telephone answering again is a perfect example.

With an outsourced provider like us you get access to a team of PAs who can provide professional call answering cover from day one and who are highly trained and experienced in providing customer service over the phone.

Bringing this in-house would be more costly, and could also take more time getting your new hire up-to-speed on your business. 

You can focus on your core business function

You might be an expert at accounting, or selling houses or dealing with legal matters, and your business benefits more from you spending more of your time focussed on that work – rather than being distracted by other tasks that – while important – aren’t a core part of your business.

By outsourcing you can be reassured that you have expertise covering that part of your business while you can spend more time on the things you’re better at and that will add more value.

Improved flexibility and scalability

Outsourcing definitely provides more scalability and flexibility around resources than hiring in-house.

Hiring staff means you have fixed costs regardless of the demand on time or need for the resource. You could go on a hiring spree during a rise in demand, but then be left with a bloated workforce when things turn quiet.

Outsourcing leaves more room for manoeuvre because you can scale your costs and resources in line with demand. This helps ensure you can be more flexible with allocation and put money and time where it’s most needed. 

Improve service

Because outsourced providers specialise in their core competency, it can often mean they can provide a better service, faster, than you’d potentially be able to deliver trying to bring the resource in-house.

Outsourcing your call answering for example gives you access to a specialist team of PAs who can handle higher call volumes in a more professional way than hiring a single receptionist could.

And they can do so at a much lower cost.

Become more operationally efficient

It’s not just the access to people that you can benefit from by outsourcing. Typically outsourced providers have tried and tested methods for delivering their service that can help improve your operational efficiency overall.

Again call answering providers are a good example.

We have tested ways of working to improve how your calls are managed and how your messages are delivered, which can be configured to match how your business works.

Uncover the benefits of outsourcing for your business

There is no one size fits all when it comes to outsourcing and there’s also no way to know when it could be the time to think about outsourcing.

If you want to know more about outsourcing, how to do it strategically and the things to look for in a reliable partner you can check out our blog which provides more information.

If you’re interested in the potential an outsourced telephone answering service could have on your business’ customer service and productivity, get in touch.

28th February, 2024

Posted by Face For Business

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