Outsource These 5 Services to Save Money
In the current climate where companies are constantly looking for strategies to manage costs while remaining competitive, outsourcing has become a core business function. Even for budding and large businesses, outsourcing is a powerful survival tool because of its numerous benefits, including cost control, reducing labor costs, and increasing business efficiency.
Statistics have shown that around 300,000 jobs are outsourced each year in the US. As a small business owner, you can be careful when delving into the outsourcing domain. But what can you outsource?
One of the areas of the business that you should consider is your IT department. In this way you save a lot of costs by:
- Have to hire additional employees
- The need to increase the hours of your employees to finish jobs
- Save costs when updating your systems with new software after each further development.
Although your team can handle your current IT solutions, will they be able to do so in the future? The modern IT infrastructure is becoming more complex every day, from servers to database management services to cryptography. Your company may need a whole list of specialists to keep your business systems functioning without interruption. Finding managed services in Jacksonville can save you money while getting great IT solutions.
Accounting is a fundamental business function that you should consider outsourcing. Entrepreneurs who take care of the bookkeeping of their small businesses consider this to be the most onerous aspect of keeping business running. 40% of small business owners find accounting and tax preparation the most stressful part of their management role. Meanwhile, hiring a full-time accountant with an average annual salary of $ 71,550 is expensive, while those with the lowest incomes make at least $ 55,900.
3. Human resources
Outsourcing your company’s HR department can save you time to focus on growing your small business. For most small businesses, investing time, money, and energy in human resources can seem inefficient. Humble tasks like finances and training hours consume the time you could spend fueling business development.
According to tax laws and regulations, payroll can take a real amount of time and effort to avoid mistakes that can be costly to your small business. There is much more to managing employee payroll than just calculating hours worked and payments. A single mistake can trigger tax assessments and audits that can cost your business thousands of dollars. Hence, it is important to hire people outside of your company to provide certain services and products that are normally performed by full-time employees. By strategically outsourcing employees, you not only save costs, but also offer your company the following:
- Reduced overhead costs
- Increased efficiency
- Reduced turnover
For example, industries such as project management, research analyst, and writing are considered best suited for freelancers and contractors.
With an effective marketing strategy, your company can generate good leads and improve customer relationships. If you don’t have the financial resources to recruit an in-house marketer, don’t invest your time and resources in content creation, knowing full well that this is way beyond your expertise. The smart approach is to outsource.
While you may have to spend some money on outsourcing, it can help develop your business and save money in the long run. Regardless of the current size of your business, the availability of freelancers and temporary workers means you can still outsource thanks to advances in technology.