8 Reasons Why Outsourcing Works

Outsourcing is vital for businesses but faces skepticism. It's not just about moving jobs overseas; local freelancers or domestic BPO firms can be involved. Outsourcing offers numerous benefits for business expansion, with eight compelling reasons highlighted in this article.
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In recent years, outsourcing has emerged as a crucial strategy for both large corporations and small business proprietors. Despite the increasing prevalence of business process outsourcing (BPO), there remains a degree of skepticism.

The prospect of relocating jobs overseas is understandably unpopular, yet outsourcing need not entail such drastic measures.

In fact, outsourcing can involve engaging local freelancers or collaborating with BPO firms situated domestically. Regardless of perspective, outsourcing presents a valuable avenue for business expansion.

Below are eight compelling reasons why outsourcing proves effective and how integrating BPO can yield significant benefits for your business.

1. Staffing Flexibility

One reason why outsourcing works lies in staffing flexibility. Handing over tasks allows your in-house staff to maintain a flexible working environment. They can focus more on what matters. Also, working with an outsourcing company means having the ability to bring in additional resources when your team is overwhelmed.

For example, you can hire extra accounting help during tax season and then release the service once things slow down. Hiring for fixed periods only is the ultimate flexibility for your business.

2. Lower Costs

Reducing overall business process costs is arguably the primary reason why business owners choose to outsource. 70% of the reason is due to cost reduction. So, why is cost reduction such a strong driver for BPO? Well, think of it this way.

Whatever you do not have to keep in-house is a cost reducer. That means no more purchasing extra equipment, spending on onboarding or training, and reducing your overall payroll taxes.

3. Stronger Internal Team

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We love a good, solid internal team. Outsourcing works to help your team develop better co-worker unity. Dedicate large projects to your internal team that requires everyone to work together. Assign any small tasks to an outsourcing company, and leave the big stuff for your staff. Suppose they can handle it, of course. Bringing contractors to work on-site also allows your team to learn from them and nurture their skills.

4. Risk Management

It doesn’t matter what industry your business is in. Every business company carries a certain percentage of risk. This is wrapped up in macro and micro considerations like government regulations, market trends, tech changes, and the competitive environment.

Another benefit of outsourcing is that your contractor will carry most of the risk for your company. They will be knowledgeable about risk factors within their area of expertise. Thus, they’ll help your business reduce risk and security concerns about their task.


5. Resource Allocation

When you choose to outsource, you are reprioritizing your resources. Every business has limited resources, no matter how large your capital pool or revenue stream is. Also, your physical location can only hold so much equipment and many staff members. BPO allows you to minimize in-house resources and stay focused on your core business operations without running out of room to operate efficiently.

6. Control IT Costs

Do you have an in-house IT team or web development team? One reason why outsourcing works is that it allows you to control IT costs strictly. What was once a fixed expense becomes a variable expense. This allows your business to budget more effectively. You will only pay for technical help when needed rather than a set salary.

7. Diverse Team

This is probably not discussed much since it is not a qualitative stat. However, maintaining and upholding diversity is always important. When we say diversity, we refer to intellectual capital. Everyone has their skills, ways of thinking, and creative attributes.

Utilizing BPO for your business means expanding your intellectual capital reach beyond the walls of your office. It’s amazing what value you might add or knowledge you might learn from connecting with professionals beyond your normal sphere.

8. Competitive Leverage

It can be challenging to match the big companies as a small business. This is especially true for startups and solopreneurs. When you outsource tasks, you can utilize your contractor’s resources. Your vendor can use their technology and expertise, which might not be readily available for you otherwise. This can help your growing organization gain competitive leverage against companies with a larger resource pool.


Unity Communications- Global Award Winner for BPO

Unity Communications Ranks 1,743rd on 2023 Inc. 5000, Marking Third Consecutive Year of Recognition

US-based companies excel at R&D, creative endeavors, product development, sales, and other professional crafts. But when it comes to repetitive, entry-level, and detailed tasks, sometimes it is better to outsource the work to keep wages and job satisfaction high.

Unity Communications was awarded as an Inc 5000 company for 2023. If you want to get a taste of high-quality outsourcing and how it can benefit your business, look at our website and schedule a meeting to get started.

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At Unity Communications, our mission is to consistently assist our clients in growing and achieving success while providing superior leadership and customer service. Our team of over 350 onshore, nearshore, and offshore BPO agents caters to startup clients and Fortune 500 accounts alike. More than 50 U.S.-based companies leverage our expertise to run, grow, and scale their operations
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We Build Your Next-Gen Team for a Fraction of the Cost. Get in Touch to Learn How.

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