10 Reasons To Outsource Your Business

Business outsourcing isn’t a new trend, it dates back to the 1700s and 1800s, during the Industrial Revolution when manufacturers began moving the production of their products to countries with cheaper labor costs.

The biggest example of a multinational corporation that provides outsourcing services is of the French-based IT company – Capgemini, which has numerous employees in at least 40 countries across the world.

Outsourcing has its own set of drawbacks – such as not being able to have a face-to-face meeting with your employees or drop in the work quality if employee management isn’t your cup of tea and so on.

But the advantages of outsourcing dominate its disadvantages greatly, and that is why it is being used in various fields across the globe. You can do your research about the pros and cons of outsourcing before implementing it in your organization.

In this article, we will highlight the reasons that will make you reconsider outsourcing for your business.

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1. Reduced Operation Costs

The most common reason organizations turn towards outsourcing is to save money. Outsourcing some of your responsibilities to third-party authorities results in a decrease in operating costs for your business.

For instance, you can outsource all your advertising and marketing tasks to organizations which specialize in those areas. This spares you from incurring the expenses of implementing advertising and marketing strategies while generating better results as the responsibility is handed over to experts in that particular field. Being able to save on operational costs directly impacts the organization’s profitability and competitiveness.

2. Reduced Labor Costs

The profitability of most small-scale businesses depends on how considerably they can decrease their labor costs. The most effective way to reduce labor costs is to outsource.

When organizations hire employees internally, they must train and compensate them for their contribution towards the organization. Hence, causing an overall increase in labor costs. But when you outsource your labor, you won’t be paying as much as you would pay your internal workforce because outsourcing labor rates are lower and don’t include benefit packages such as health, insurance, etc. Also, outsourcing ensures the workforce is qualified to accomplish the specific task – reducing training time and costs.

3. Globalization

Economies have become more integrated and interdependent because of the process of globalization. Through globalization, outsourcing has become increasingly popular. By including outsourcing strategies in your business and enabling your business to grow across the globe ensures your company has established itself in a global market.

If you choose your location for outsourcing strategically in a country with a different time zone, you may gain a huge advantage by utilizing your 24 hours to its fullest. As your outsourcing business partner/company can take over and finish the task even after your internal employee logs off.

4. Competitive Edge

The most important reason to include outsourcing in your business strategy is to gain a massive competitive edge in the market and over your competitors. Implementing a thorough and smart outsourcing plan ensures you save up on a lot of costs, reduce the workload of your internal employees without compromising customer satisfaction and the quality of your products and services. Through outsourcing, you can get a step ahead of your competitors who haven’t utilized outsourcing in their businesses yet.

5. Access to External Skills And Resources

The primary reason a business outsources their project or certain tasks is that they require skilled expertise and external resources which aren’t available to them.

Allowing third-party companies to perform your tasks gives you access to utilize the benefits of skilled professionals and resources which will aid in the completion of your task, ensuring overall growth and success of the business.

6. Availability Of Internal Resources

You can free up your internal resources such as company funds, employee income, employees, location of your task, equipment, facilities and many more through outsourcing some functions or departments of your business. Having certain activities of your business outsourced means an outside workforce shares the workload of your employees, enabling you to build a stronger internal work-force to utilize them more efficiently.

With experts handling your projects overseas makes your internal resources available to you as you won’t be using those on recruitment, training, payroll, employee perks and so on.

7. Increases Efficiency

Outsourcing improves efficiency as you hand over your business functions to experts in that field. Since the tasks are being carried out by skilled professionals, they’ll know how to execute which your in-house employees can’t do without extra training.

Your outsourced tasks can be done tactically by trained experts, therefore completing the task effectively and improving efficiency.

8. Risk Management

There will be times when your organization has to carry out a task for which it isn’t fully qualified. Outsourcing such tasks to companies equipped with specialists reduce the risk your company could have faced. Also, your outsourcing partner will be held liable to take care of any issues associated with that task.

9. Focus On Core Business Functions

When your non-core business functions load up, you may need to shift your attention, funding, employees and other resources towards the fulfilment of those tasks. This way, the core functions of your business suffers a lot.

When these tasks are outsourced, it allows you to focus and utilize your resources towards fulfilling the primary functions of the business. Being aware that experts elsewhere are handling other important, if not equal, tasks of your organization gives you a peace of mind and helps you direct your energy and resources towards the successful completion of your core business functions.

For instance, outsourcing jobs such as accounting takes away the burden off of your organization and ensures that your work is done quickly and accurately by experts – allowing you to focus better on the core business tasks.

10. Customer Satisfaction

Outsourcing certain departmental tasks to the hands of qualified experts ensure that your customers receive quality products and services faster, which has a positive impact on your customer’s satisfaction levels.

Being able to deliver high-quality products and services to your customers on time not only increases customer’s happiness quotient but also helps you gain customer loyalty.


Business outsourcing is being widely adopted by various multinational corporations for the overall growth and success of their business. If you haven’t tapped into the promising potential of outsourcing your business yet, then now is the time to do so.

If you are interested in even more business-related articles and information from us here at Bit Rebels then we have a lot to choose from.

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