And how it can make your business grow

You’ve been thinking about expanding your business and finally decided it’s time for your baby to grow. So now what? Increasing profitability means you’ll either need to minimize costs or hire more staff. This usually involves getting new office spaces, going through tons of legal documentation and increasing your HR efforts; besides dealing with the inherent risks of expansion. The more you think about it, the more it begins to seem like a daunting and expensive procedure… perhaps it’s better to put this plan on hold and let your future-self worry about it next year…


This is when Outsourcing can truly help your business shine and reach its higher potential.

What exactly is outsourcing you ask?

According to The New York Times, outsourcing is “the practice of using outside firms to handle work normally performed within a company”[1]. In other words, it is when you pay external companies to manage a process of your operations. This benefits your business as it reduces costs, improves efficiency, and if done right; makes your company grow.

So… Outsourcing is mainly a way for companies to save costs?

Yes… and no. Although this is a main appeal of Outsourcing for many business owners, its benefits are much more.

It becomes a path for your company to remain competitive in the market; just check this article from the New York Times[2] outlining the many advantages of outsourcing. Although you must be careful when choosing an outsourcing company. If you go for costs alone and do not check other qualities such as expertise, quality and experience; it won’t add any value to your company or customers.

How does Outsourcing help my business grow?

It makes growing more plausible. To put it simply, Outsourcing makes expanding your company an easier and more accessible process.

These are a few ways outsourcing can make your business thrive:

It allows your company to improve areas in which it lacks expertise.

You’re pretty good at what you do, and work hard every day to be even better. Inevitably, there’ll be areas in which your business has no experience, and that’s alright. Outsourcing those functions to a specialized third party will complement your efforts and allow you to focus on what you do best. This way your business thrives by having an outsourcing partner that takes care of vital operations which your company can’t handle properly.

Outsourcing gives you the opportunity to allocate more resources into your core business activities.

Outsourcing back-office operations frees you time and money which you’re able to invest in your core business activities. This way, you concentrate in improving your company’s strengths and can rest assured that your back-end operations are being taken care of by professionals. Because how will you be able to grow your company, when many of your resources are being consumed by non-core activities? Outsourcing these activities is how successful enterprises are able to invest more in what is essential to them and outrank their competition.

Outsourcing helps your business avoid litigation risks.

Picture this; your growth strategy is starting to give results, sales are growing, and office morale is at an all-time high. You’re pretty happy with yourself. After all the hard work and tough decisions; your business is showing the first signs of growing. Then, out of nowhere, your bubble is burst by an employee lawsuit. “Impossible! I’m more than fair with my employees! There’s no way they’ll sue me”. Although it seems hard to believe, a report from liability insurance company Hiscox[3] indicates that one in five small or medium-sized businesses face employment charges in the U.S. The average cost of defending your company and paying a settlement is of $125,000.00, and even if your company wins the lawsuit; you still have to deal with the costs of attorneys, time consumption, and the damage to your company’s reputation. Outsourcing eliminates litigation risks, as your personnel is hired by a third party. With an outsourcing partner you can be confident that no legal setbacks will slow or end your company’s growth.

Your business becomes ready for sales eventualities.

It’s a bittersweet feeling when your demand increases to a point where you cannot cover it. Great! People want to buy your product/service, but you didn’t have the manpower to handle the spike in demand. Outsourcing helps you by covering that extra demand with temporary positions, which makes sure that no sales are lost. The great thing is that a good outsourcing partner is an expert in recruitment and has the ability to handle your demand surges accordingly. What if the contrary happens? The same applies. If your sales decline; your outsourcing partner will lower the amount of personnel to fit your necessities. This is a great strategy to grow your business as you’re able to accommodate to new market demands.

It reduces costs

As mentioned before, reducing costs is what Outsourcing is mostly known about. There is a reason for this. After all the great benefits of outsourcing, costs reduction is a pretty big one. You get highly talented professionals for a lower cost than your local market. You also save on overhead expenses and HR efforts, as your outsourcing partner takes care of the employee necessities, equipment and installations. In turn, this frees capital which you can invest in developing and growing your company.

Outsourcing is a strategy that can boost your business growth and make you more competitive. The key is understanding what your company needs and finding an outsourcing partner best suitable for you. If you have doubts regarding outsourcing don’t be shy, contact an outsourcing company you’re interested in and find out what they can offer you and how they can help your business grow.

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At Outsourcing Services International we pride ourselves in our highly talented and professional workforce; if you have any doubts regarding outsourcing, and how it can work for your business; feel free to reach us at info@osinearshore.com or (855)746-4674.