Essential Services Limited | Benefits of Outsourcing
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Benefits of Outsourcing

The benefits of business outsourcing are numerous. However, here we will breakdown and explain the main reasons that businesses choose to outsource their processes.



To Reduce Costs:


This is one that is actually surprising to some. However, outsourcing the internal business processes can often save a company more money than performing the same processes internally of the company. There are various reasons for this, but the main ones are employee contractual obligations and costs within the business’s home country.



Regarding contractual obligations, for specialist areas like IT, IT outsourcing can in fact save a company a lot of money. The reason for this is that specialists in the field of IT can often demand high salaries with packages that include a lot of extra benefits (expenses for the company). With outsourcing processes such as marketing, SEO and copy-writing, your company would often either only pay for what is completed, or pay a retainer fee for a certain amount of service usage. Hence, the cost savings gained via IT services outsourcing can be rather tempting for businesses.



For costs regarding the business’s home country, the reason is sometimes not as obvious as it seems. Outsourcing offshore can provide clear cost savings, such as those of hourly labor rates. However, there are also additional cost savings. These can include less obvious areas like TAX breaks, licensing costs and legal costs that are dramatically reduced, or completely avoided by outsourcing offshore.



To Reduce Problems and Save Time:


Let’s be honest, doing business in the modern day can be quite complicated. Depending on your business area, there is all too frequently the need for safety certificates, licensing, registrations, insurances, and … well … the list just goes on and on and on. Hence, this is one of the major reasons that companies look into offshore outsourcing. These areas may be a little easier by just outsourcing that task to another contractor.



By using an overseas company, or agent, to perform current or newly required business operations, businesses can save themselves a lot of time and headaches. In the area of licensing and safety checks alone, this can be a very complicated and long process to achieve what is required. Although licensing is often made compulsory by governments, rarely do they make the required licenses easy to process. Hence, the application and assessment of your company may take weeks, months or possibly even years to obtain the license and safety standards required of your business. However, often in over countries, such licenses can be easily obtain, are not required, or are far cheaper. This means that by outsourcing to an agent that can perform your required tasks straight away and gain the benefits of outsourcing. This can in fact save a lot of wasted time and therefor possibly wasted money and loss of earnings while you wait for the required certifications.