It’s Time to Consider the Upside of Outsourcing

By Jim Bourdon, CEO & Founder, Accounting Management Solutions

It’s been said that if you want something done right, you have to do it yourself. While this statement appeals to our deep-seated need for control—and perhaps our own sense of relevance—the hard truth is that sometimes it’s better to let someone else take over. A good leader will always know when it’s time to delegate authority to keep their operations running smoothly. Having this kind of good judgment is especially important in growing organizations where increasing responsibilities can quickly outpace the bandwidth and knowledge of your existing resources.

The term “outsourcing” has gotten a bad rap because it’s often synonymous with the phrase “off-shoring” and carries some of the same negative connotations. But outsourcing is really just another word for “delegating,” and when done strategically, outsourcing can have a huge impact on your organization. Here are just a few examples of what you might achieve by outsourcing parts of your operations:

1. Time to focus on your core competencies. When you delegate time-consuming tasks to a third-party agency, it frees up your internal resources to focus on the core process of your organization. It allows you to concentrate on the essentials like how to better achieve your mission and building your growth strategy. If areas like human resources, accounting, web design or IT are not at the core of what you do, these are good targets for outsourcing to the experts.
2. Access to new skill sets. What may be an ancillary, administrative task to your organization is a core business process to someone else’s. By tapping into their expertise, you will have access deeper knowledge and broader skill sets than you currently have on your existing team. Your service provider will be able to enlighten you on the best practices used across their entire client base. Another benefit is that you will not have to spend time and energy trying to find the perfect full-time employee with all the right skills to do the job.
3. Risk mitigation. Outsourcing to a third-party means that you gain an extra layer of protection for some legal risks. With the proper preparation and plan – relying on experienced professionals to complete the job correctly has the benefit of limiting the liability of negligence.
4. Cost savings. Probably one of the biggest incentives for outsourcing, reducing operational costs is an important benefit that impacts your bottom line. Companies that outsource portions of their business operations often find savings in the form of reduced payroll, infrastructure, administrative costs, and taxes.
5. Scalability. If your organization has regular, predictable peaks and valleys, then it makes perfect sense to engage an outsourcing provider during the seasons when extra help is most needed. Unlike traditional employees, using an outsourcing provider gives you more flexibility to ramp up or scale back your team according to the fluctuations in the business.

The practice of outsourcing non-core business functions has become the status quo in the modern world. It is a tested model, and when you partner with the right provider, it is a competitive advantage for any organization.