Outsourcing projects has largely been the affair of large and medium sized corporations. However increasingly, smaller companies have started to outsource their non-essential tasks so that they can focus on building their profits. What initially started as an exercise to reduce IT functions within a company has extended to other departments within an organization as well.
Medium and large sized companies have the resources to choose efficient service providers unlike the smaller and newer companies. Even if smaller companies do not have the necessary resources, they can choose the right service providers by engaging in careful selection processes. Avoiding signing long term contracts can also be a good strategy for companies who are initially testing the waters.
Whether large, medium or small sized, companies can outsource 5 important functions in order to focus on their core-competencies.
1. IT infrastructure
IT outsourcing remains the top priority for most companies. Companies can outsource their software development, web projects and other IT projects. IT infrastructure includes hardware, software, networks, facilities etc which are needed to develop, control, monitor and render IT services. A good IT governance framework helps companies to outsource every aspect of IT infrastructure.
Accounts and numbers are something that every company needs to take care of. Professional accountants are usually hired full time by medium and large companies. However, companies of all sizes can outsource accounting and bookkeeping. Moreover, efficient bookkeeping can help in saving taxes and ensuring that all the returns are filed in a timely manner to avoid penalties.
3. Website designing and development
It is not possible for companies to always have a dedicated HR section or department. HR and payroll services can be outsourced too. This helps companies to actually focus on building valuable relationships with their employees while formalities are taken care of by payroll service providers. It is often noted that small companies become overwhelmed by payroll related matters and they often lose opportunities to build healthy relationships with employees. Development and implementation of HRMS tools can be outsourced too.
5. Digital and Social Media Marketing
In the last few years, the importance of social media has become very evident. Facebook, Twitter and LinkedIn have all gone public and it is important for every company to market its products and services on social media. It is also important to have active and functioning social media accounts. It may not be possible to engage in digital and social media marketing all by oneself and it becomes necessary to outsource these requirements as well. Thus, social media marketing have become one of the top 5 services to be outsourced.
Outsourcing is an important business practice for small companies
Businesses cannot afford to spend a lot of time on the above mentioned activities. It is also not advisable to spend a lot of money on dedicated departments for IT, accounts, web development, HR & payroll and social media marketing. Outsourcing these 5 services to external providers will help companies to save time, money and resources. These resources can be invested in making profits and remaining unique in an ever changing world.