Lack of specialized knowledge, technology and resources can make it challenging for organizations to complete all essential tasks in-house.
So it’s no surprise that roughly 300,000 U.S. jobs are outsourced each year.
Depending on your needs, third-party consultants can lend their expertise to a specific project like a software implementation, oversee ongoing needs such as executing on a marketing strategy, or assisting with improvements like optimizing departmental workflows.
According to Indeed, the most commonly outsourced jobs include customer support, IT and HR.
Here are the top reasons that companies outsource:
- Free up internal resources. In today’s business climate, time is a hot commodity. Successful companies would rather spend their resources on revenue-generating endeavors. By outsourcing routine or more specialized services, you can take back more hours in the day to propel the business forward.
- Gain an impartial view. Tenured employees are valuable to any organization. But eventually, you may be looking for an outside perspective, fresh ideas and deeper insights. Third-party consultants can offer these benefits without adding to your headcount.
- Access the latest technology. If your company isn’t on the cutting edge of technology, a third party can offer the best, up-to-the-minute technological advancements to improve your workflow, output and customer experience. For example, prior to the pandemic our firm invested in virtual meeting capabilities to allow us to serve more clients in diverse geographic areas — a system that allowed us to remain fully operational and keep clients and staff safe during the pandemic.
- Save money. When outsourcing, you’re paying trained professionals solely for the services you need. You don’t have to worry about providing benefits and insurance or incurring onboarding and training costs. Instead, third parties often charge an hourly rate or establish a retainer for the assigned job duties.
- Improve service. Outsourcing can help improve your service — from speed to efficiency to quality. If a task or function is not within your team’s wheelhouse of expertise, passing it along to a specialized third party can enhance overall results.
What’s the catch? There’s always a risk
Managing third-party risk is an ongoing process. Consultants often have access to sensitive company financials or client data, so preventive measures are critical:
- Carefully vetting consultants
- Limiting shared data
- Implementing network segmentation
- Routinely monitoring accounts
By understanding the risks and creating a strong line of defense, your organization can maintain peace of mind while reaping the benefits of outsourcing.
Find out how Magone & Company can play a vital role on your team
Are you looking to fill a specific financial role? From bookkeeping to small business accounting to CFO services, Magone & Co can help organizations like yours operate more efficiently — without investing in expensive staff and technology infrastructure. Get in touch to see how we can help.