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From business processes to infrastructure and technology, outsourcing solutions are now commonplace in modern businesses. But, how do you know which outsourcing solution is right for your organization? In this blog, we discuss the potential benefits from outsourcing for your entire company.
The way in which organizations operate has shifted dramatically in recent years. In the face of geopolitical challenges and uncertain economic climates, companies across numerous industries and markets have had to findalternative and more cost-effective techniques to remain competitive. This has led to the rise of outsourcing solutions across all business areas.
What Business Functions are Most Commonly Outsourced?
There are three types of activities you canoutsource to external vendors. Depending on the core skills of the internal team,it may be beneficial to outsource some or all of these activities to save time, resources, and money.
- 1. Business Process Outsourcing (BPO): Covers the activities of front and back office staff, such as customer care, inventory management, payroll, data entry, and similar administrative work.
- 2. Software Development: Frees up resources, expedites development timeframes, and provides access to technical know-how, whether you choose to outsource some or all of the software creation process.
- 3. Infrastructure and Technology: Leverages the existing infrastructure of an outsourcing partner, as it can be costly and time-consuming to create your own, and offers access to specialist outsourcing solutions provided by technology vendors with more experience in certain fields.
What are the Key Benefits of Outsourcing for a Company?
1. Scalability
Whether it's business processes or infrastructure,the ability for a business to scale quickly and efficiently can make or break its chances of success. Easy access to experts, knowledge, and resources without long-term overheads provides the flexibility that a business needs during times of sudden increased activity. By outsourcing services to an external provider, a business can also avoid potential costs and other risks associated with employee layoffs once a project is complete.
How can outsourcing solutions improve operational efficiency?
A good example of this can be found in the healthcare industry, where the global hospital outsourcing market size is expected to reach USD 679.2 billion by 2027. The right outsourcing solutions enable hospitals to access qualified medical staff with soft skills in hospitality and provide easy access to non-medical staff, such as administrative workers, facility management, catering, laundry, and home care.By outsourcing, hospitals can scale as needed during times of sudden increased activity, freeing up their medical staff to focus on their core skill areas.
2. Cost
One of the main reasons businesses outsource certain activities is to access economies of scale. The costs associated with recruitment, office space, equipment, licenses, employee benefits, training programs, tools, and other requirements can be significantly reduced by outsourcing the work to an external vendor.
How does outsourcing help reduce company costs?
Cost savings are also especially notable in cases where activities are unpredictable. For example, a business may have a sudden requirement to update its trademark records, following a business change. Managing IP recordal projects requires expertise and resources, which may not be cost-effective to hold in-house if only needed on an ad-hoc basis. Working with a specialist IP provider can help keep costs down while also enabling you to take prompt action to maintain your rights.
3. Time
Another key benefit of an outsourcing solution is that the external team can help you to work around the clock to get things done, especially when it comes to business process outsourcing. For instance, if you need someone to support a local time zone, but your business doesn't have an office location or staff there,you can work with a local partner to conduct your business activities during their local hours. The same applies if there are IP tasks that require round-the-clock attention. By choosing an IP outsourcing partner with capabilities in another time zone, the work can be managed outside your business hours,allowing you to pick it back up the next day.
Interested in exploring more benefits of IP outsourcing solutions? Read our article ' How Outsourcing IP Support Can Enhance and Improve IP Administration Processes ,' discover ' 4 Good Reasons to Outsource Trademark Docketing ,' or download our ' Case Studies in IP Administration.'
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
