It is no secret that outsourcing is a proven strategy for overcoming recruitment challenges. At a time when 75% of companies are reporting difficulties recruiting qualified talent1 and the global skills shortage is at a 16-year high2, many businesses are rightly looking offshore to solve a headache that shows no signs of easing any time soon.
The current economic climate is also regularly highlighted as a reason to outsource. With the International Monetary Fund saying the global economy is headed for its weakest medium-term growth in more than 30 years3, it is little wonder businesses are embracing the chance to hand time-consuming and repetitive tasks to external providers that can cost up to 70% less than in-house staff. Studies have repeatedly found that saving money is the number one reason businesses outsource, with one global survey revealing 59% of organizations rely on the strategy to reduce costs4.
Recruitment challenges and economic pressures are justifiable reasons for outsourcing but it is easy to forget the multitude of ‘proactive’ reasons for partnering with a quality provider. In particular, countless businesses have repeatedly shown how outsourcing can be leveraged to deliver sustainable growth and that should always be a goal regardless of the economic or recruitment outlook.
What is outsourcing for sustainable growth?
Outsourcing for sustainable growth is the practice of using external talent to support a business’s development without needing to increase financial commitment. Growing too rapidly can become an issue for organizations when they are forced to go further into debt to fund such growth. Sustainable growth is the realistically achievable growth that can be maintained without running into problems and outsourcing is an ideal tool for supporting such efforts.
How does outsourcing promote sustainable growth?
Businesses have long turned to outsourcing in times of need but there are many reasons they should also adopt the strategy when pursuing growth ambitions.
- Expansion: growing a business would be simple if managers had an endless pool of resources to utilize. This is not the case for many organizations though, which is why outsourcing can be such a valuable tool for supporting such efforts. Rather than go into debt to fund expansion, outsourcing allows businesses to assign certain tasks to specialist providers at cost-effective rates and dedicate their energy on areas of more urgent need.
- Reinvestment: outsourcing saves money, which is a blessing for businesses committed to sustainable growth. By partnering with providers in economies with a lower cost of living, it is possible to reduce labor costs by up to 70% and those savings can be reinvested into in-house workforces that are needed to drive growth efforts. Be it recruiting additional staff or better resourcing those already onboard, it is reassuring that such support has been funded from within.
- Continuity: growth periods are often times of transition and outsourcing is an effective way to help maintain consistency amid such change. As new managers or product lines are introduced to a business, it is essential routine tasks are completed with the same care and attention as normal and customers receive the standard of service they are accustomed to. Quality outsourcing providers will take responsibility for achieving this, even when your focus is elsewhere.
- Innovation: many business leaders argue innovation is one of the key factors for securing a bright future and quality outsourcing providers can bring a fresh set of eyes to an organization. Along with being experts in their fields, they have a vested interest in devising creative ways of tackling tasks with fewer errors and better results. Better still, outsourcing has been proven to inspire in-house staff to be more motivated and creative as they can dedicate more time to their core tasks.
- Specialist skills: knowledge is power and outsourcing allows ambitious businesses to tap into the specialized skills of external providers at cost-effective rates. Employing a wider and more diverse workforce can be the difference between stagnating and growing sustainably, with many organizations having faltered because they tried to ‘go it alone’ for too long. Accessing specialized skills sets can allow companies to become better ‘all-rounders’ in a competitive marketplace.
Summary
Owning a business is like being on a never-ending rollercoaster. Even if you manage to make it through those incredibly difficult first couple of years, U.S. Bureau of Labor Statistics data shows only 35% of organizations survive beyond 10 years5. Rather than navigate the challenges of managing significant debt, sustainable growth is the dream of many executives and outsourcing can play a vital role in making such ambitions a reality. Download this checklist to find out how.
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