Outsource Non-core Activities - Improve Efficiency And Reduce Cost In Poor Economy

Maximizing profits during an economic slump is possible if businesses maintain lean operations

. One way to do this is by outsourcing non-core functions. Outsourcing companies of today have matured into professional businesses. Severe competition has driven them to hone their services and improve business processes. The staff is skilled, experienced, qualified, and trained to meet industry standards.

Selecting the right outsourcing company is critical to the success of this venture. The business principles of the outsourcing company should align with your business policies, communication should be transparent and timely, reporting should be exhaustive and prompt, and quality of work should meet or exceed expectations. The right outsourcing provider could actually do the job much better than you, in less time and for less money. Before selecting an outsourcing provider, you should always check references from previous clients, longevity in business, experience in your business industry, customer service, expertise of personnel, past service records, and its capacity to handle the expected volume of work.

Outsourcing companies work with a business for a contractual period. They will put in more effort and offer more for less to prolong their professional relationship with you. For example, a medical billing provider will not only manage billing operations, but also implement processes that will improve the revenue management cycle in the long run. Payroll providers not only ensure timely and accurate paychecks for all around, but also manage bookkeeping and related administrative jobs. HR outsourcing not only builds the employer-employee relationship, it also uncovers potential problem areas and deals with them proactively. Fulfillment providers don't just store and ship products, they also provide customer support.

Temporary staffing has grown beyond low wage jobs. Skilled professionals of various levels can be hired from temporary staffing agencies and provided the functional training necessary for the workplace. Sudden spike in work can be handled without the pain and expense of recruiting new personnel. Telemarketing services can multitask as call center services during heavy workload.

Outsourcing services fall cheaper than in-house operations for many reasons - they work for more than one client and therefore multiuse resources; they give bulk orders to their suppliers and get the benefit of heavy discounts; they leverage the economies of scale.

Outsourcing services often manage a job better than in-house operations for many reasons - they typically manage aspects of specific operations only (for example, collection or telemarketing); they keep getting better with time and experience and reach expert levels; they receive trainings and keep in touch with changes in processes related to their work; they tie up with more than one supplier or service (such as a courier service) to ensure work does not stop because of any one supplier's problems.

Many businesses are moving from offshore outsourcing companies to onshore companies because of cultural affinity. President Obama has announced plans to give tax incentives to organizations opting to keep jobs within the country. Either way, for a business, outsourcing is an effective means of controlling costs. As more businesses look to outsource operations, outsourcing companies themselves become a viable option for unemployed professionals left in the lurch by the recession.

by: Daljeet Sidhu

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