5 reasons you need to outsource

For many reasons small and large businesses choose to outsource particular tasks or services to third parties and agencies. 5 reasons you need to outsourceAs outsourcing continues to evolve, so do the reasons for SMEs and bigger organisations to consider adopting those methods for the good of their business.

Let’s look beyond the pound and dollar signs and see some of the other popular reasons for outsourcing services.

Saving internal resource

In demanding industries there are many instances where highly-pressurised employees simply don’t have enough time to focus on core business functions that can drive long term growth. Businesses need as many people as possible to be able to focus on the profit-driving areas of their organisation. By outsourcing certain tasks or services to third parties, companies can save valuable internal resource to devote towards moving the business forward.

Corporate tax rates

Some businesses choose to outsource particular services or divisions of their business overseas in order to take advantage of greatly reduced corporate tax rates. Countries such as Hong Kong, Taiwan, Singapore and closer to home, Ireland all boast very low corporate tax fees which can significantly improve a company’s bottom line.

Enhanced service

There may be an area of your business that would require significant in-house and external training in order to get employees up to speed. Subsequently it may be more cost-efficient to simply outsource the entire service to a third party or agency. It is quite possible they will add greater value than you even anticipate due to the skills and expertise they possess. Why spend time and money learning new services and skills if you can employ a professional to do it for half the cost?

Always available, always accessible

In some cases businesses choose to outsource services or divisions of their organisation in order to make sure they appear constantly accessible and available. In order to create the impression of operating 24-hours without closing down it is possible to outsource to an overseas partner that can do important work overnight whilst catching up on much-needed sleep!

Less contractual risk than employing full-time staff

Although reaching agreement with outsourcing contractors can be unsettling and protracted, outsourcing work carries significantly less contractual risk than employing a full-time member of staff. Contractual agreements can be created to offer protection for both parties, whilst removing any difficult human interaction that can occur when in-house employees are dismissed. Outsourcing firms can be held just as accountable for poor performance and poor quality of work as a full-time employee.

While outsourcing requirements will naturally differ from company to company, there is no getting away from the fact that outsourcing is becoming a key component to the day-to-day strategies of successful businesses.


About David Campbell

David Campbell, of Pall Mall Estates, one of the UK’s leading providers of affordable commercial space to rent. Pall Mall specialises in attractive London business space as well as areas across the West Midlands and beyond.