Keep Your Staff Focused On Internal Strategy by Outsourcing Routine Business Processes

All businesses are identical in that they use people and processes to create and sell products and services. All businesses are unique in the people they hire to create and market their unique products and services. Smart businesses increase investment in their unique assets and proprietary processes and save expenses by paying an outsourced provider to manage routine business tasks. Really smart businesses maximize profit and productivity by strategically identifying those corporate functions that are best suited for an outsourced provider. Research demonstrates how companies benefit from “farming out” routine, non-core business functions.

Retain functions that are core to the corporate identity:

Control over integral aspects of the corporate entity should be retained in-house. These would include the proprietary processes and products that set the company apart from all other competitors. The premise is that these employees create and maintain the corporate “core competency” and are the experts in their field. Their labor creates the fundamental revenue stream of the business and maintains business continuity throughout the company. In a 2013 worldwide survey of managing directors, chairmen, and other senior decision-makers from mid-market business in all industries, 45% noted maintaining business continuity was a factor in their decision to outsource less significant aspects of company function. 57% acknowledged that proper outsourcing would improve efficiencies in their business.

Determine the scope of the function(s) to outsource:

Tactical functions are targeted towards solving a particular problem and typically have a finite timeline – reducing the cost of payroll, for example. Depending on the significance of the work to the core function of the business, tactical functions lend themselves to outsourcing. Finding an alternative labor force for these services can add the benefit of gaining outside expertise. Seventy-five percent of survey respondents sent internal functions outside the company for the purpose of accessing additional knowledge. As the outsourcing arrangement evolved, it was also an easier call to eliminate outsourced labor; 55% respondents appreciated this nuance.

Use analytics to track improved efficiencies and revenues:

Fundamentally, outsourcing should improve the overall performance of the company. In regard to specific improvements, 95% of survey respondents cited improved efficiency; 91% looked for a reduction in overall costs and 70% commented on reduced liability risks due to a delegation of those to the contractor. Reducing payroll was noted as significant for 58% of the corporate administrators.

Today’s technology world can be inhibiting without sufficient support and skill to manage it. By understanding expectations of contractors and maintaining flexibility over time, you can keep your staff focused on strategy by outsourcing routine business processes. Contact us today to find out how.

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