Data shows that over 35% of small businesses outsource at least one activity. There are many advantages of outsourcing, but it doesn’t always work. If you’re thinking about outsourcing processes, here’s a handy guide to help you identify potential benefits for your business.
By Team Savant
Image: Cristian Tarzi
Freeing Up Time
One of the most beneficial aspects of outsourcing is freeing up time for core activities. Running a business involves multiple cogs and components, some of which are more crucial or influential than others. Outsourcing can help you create more time for fundamental tasks by letting third parties take care of other jobs or activities. From IT support, cleaning and logistics to marketing, sales and manufacturing, there are several processes and services you can outsource.
Cutting Costs
Reducing costs is another popular reason to embrace outsourcing. Outsourcing enables you to access talented teams, equipment, machinery and purpose-built facilities without blowing your budget. In the case of working with an electronic manufacturing company, you can enjoy the benefits of streamlined, efficient services without worrying about recruiting or finding the necessary funds or space for cutting-edge equipment. In basic terms, you can solve common problems, such as a lack of space and resources, to achieve your business objectives.
Outsourcing is often viewed as a cost-effective alternative to hiring new employees. If you have gaps in your team, or you need specialist skills, you can work with an external provider or agency rather than committing to a full-time salary and paying hiring and onboarding expenses. The average cost of hiring a new employee in the UK is approximately £3,000, according to the British Business Bank.
Developing Your Business
Another key benefit of outsourcing is creating opportunities to develop, grow and improve your business. Digital marketing is a popular activity to outsource. Figures show almost half of UK companies outsourced marketing in 2024. If you hire a marketing agency, you can benefit from tailored, customised strategies and campaigns to increase sales, optimise brand awareness, generate more leads and put your company on the map. The beauty of outsourcing is that you can do all this while focusing on the core elements that underpin the daily running of your business.
Alleviating Stress and Pressure On Employees
Outsourcing can be pivotal in creating harmonious, healthy workplaces as it often relieves stress and pressure on employees. If employees are swamped, or they’re being asked to do jobs that don’t match their skill set or job description, this can impact morale and well-being as well as performance levels. Other tasks can be a distraction and working overtime and long hours can increase the risk of stress and burnout. As a business owner, you can use outsourcing as a means of alleviating pressure and ensuring your employees can invest all their time and effort in core jobs.
There are several brilliant advantages of outsourcing for businesses, but it’s crucial to make the right decisions. Key benefits include freeing up time for core teams, accessing skills and services you don’t have in-house, taking advantage of specialist services and cutting-edge technology, equipment and facilities and developing and growing your business. Outsourcing can also help you boost team morale and create more time for priority tasks.