According to the stats from the statista.com: the market size of the global outsourcing industry reached $85.6 billion in 2018. Well, this is not the only one interesting stat showing how popular outsourcing has become. This 2018 global outsourcing report from Deloitte is filled with several equally interesting facts.
The truth is that outsourcing & offshore development services have become a trend these days. Many companies are looking forward to hiring a dedicated offshore team and outsource their business. Reasons might vary: reduced costs, focusing on the core business, improved service quality, effectively managing business processes, and so on. But the biggest reason why companies outsource these days is that they want to boost their revenue.
Now, one question that you might want to ask yourself is: How? Well, here are 5 ways you can increase your company’s revenue by outsourcing:
- Outsourcing offers easy access to the latest technology and expert resources
The latest technical stack and valuable resources are two basic requirements if you want your business to be productive.
However, hiring valuable resources and establishing the latest technologies are the two biggest challenges that an enterprise might face. Hiring a full-time resource takes time. First, you hire employees, then you train them, and if any candidate leaves in the middle, you will have to repeat the same process again.
Similar is the case with upgrading the technology. First, you buy the upgraded technical stack, and then you train your staff in it, which might require you to hire trainers as well. Now, if any candidate leaves in the middle, you will have to invest the same amount of time and resources in training the next person you are hiring.
Imagine how much time, effort, and resources this will take? Do you think anyone will bother going through so much hassle? Well, I don’t think so, especially when outsourcing offers a much better alternative. In outsourcing, you don’t need to worry about hiring valuable resources or upgrading the technical stack. Your outsourcing partner will take care of all these things. This will leave you with enough time and energy to focus on productivity.
- Outsourcing reduces unnecessary costs
Outsourcing can also help you cut back on unnecessary costs. In fact, this is one of the main reasons more than 59% of businesses prefer outsourcing over hiring an in-house team.
We all know how costly it is to hire an in-house team. Not only you will have to recruit candidates but also train and equip them with the latest technology stack. Also, when you upgrade the technology – just updating a small software can cost you thousands of bucks. Now, imagine how much upgrading the whole infrastructure will cost? Monthly salary, training expenses, office expenses, infrastructure cost – overall, if you compare, you would realize that you are spending almost double the money you would have by hiring an outsourcing partner.
When you outsource, you don’t have to spend money on hiring the staff or upgrading the technology. All these things will be handled on behalf of your outsourcing partner. And hiring an outsourcing partner is not that difficult. If you outsource to countries like India and China, you can hire resources in almost half the amount that you were going to pay your in-house team back home.
- Outsourcing improves quality of service
Not all the employees in your in-house are productive. Some might lack a can-do attitude. Some might not be having the skills required to get the job done. Such people can turn out to be a liability in crucial projects. These people can turn out to be a liability for crucial projects. You can’t even replace them because if you do, you will have to train the new person from scratch. So, you don’t have any other option than keeping these people in the team till the time you find a suitable replacement.
With an outsourcing partner, you will not face this problem. They usually have a dedicated team of people who have enough knowledge and hands-on experience in providing the services you want to outsource. Moreover, you can regularly check on your outsourcing partner to track the work process. You can also question them if you don’t find the desired quality in your work.
Another best thing about outsourcing is that they give their 100% on the project Moreover, the outsourcing team keeps helping you with new insights and suggestions which ultimately help you improve your service quality.
- You can focus on things which are important
The reason most businessmen fail to become productive is that they involve themselves too much, ensuring that the in-house team stays productive. This leaves them with little time to focus on the core practices.
Outsourcing can set you free from this trouble. Since you already have a fully-fledged team which is being managed by an outsourcing partner, you don’t have to get yourself involved in managing and supervising the team. Instead, you can focus on improving your core practices and see how you can make your business more productive. Another best thing is that you can reserve your in-house team for these specific purposes.
- You can benefit from the Time-zone Difference
24×7 availability is another key factor for successful customer service. But we all know that our in-house team can’t be available all the time, not unless you hire extra resources and deploy them for the night shift. But this will mean spending double the money for hiring resources.
However, when you outsource, you can ensure that you remain active all the time while not spending that much money on resources. Consider the example that you are residing in the US and hiring an outsourcing team from India. Now, both countries have a time zone difference of 10 hours and 30 minutes. This means while your in-house team is handling the operations in the day, the outsourcing team will take care of the operations at night. This makes you available almost all the time. Imagine how much more productive you can become this way?
After carefully analyzing these points, you might’ve realized that outsourcing can be an effective productivity booster for your business. However, hiring a good outsourcing team is not easy. There are a lot of things we need to consider before outsourcing any development project. We can’t just go unplanned, make a wrong choice, and regret later. Instead, we need to hire an outsourcing partner that values our efforts, understands our vision, and gives a hundred percent in helping us to offer quality services. Only then we can achieve the business goals we are aiming for.
Amit is the Founder of Signity Solutions. A tech-evangelist, he has an uncanny ability to synergize and build associations, thriving teams, and reputable clients. His vision is to grow his decade-old company as per global standards, and his deep analytical skills to foresee market trends, as well as global challenges.