Businesses seeking to survive the economic downturn were forced to research and implement innovative methods. One approach that has produced tangible results both internationally and locally is that of outsourcing.
Outsourcing offers multiple benefits to companies looking to survive the current pandemic and beyond, grow their business offerings, or streamline costs by saving money. More organizations are turning towards outsourcing solutions. In 2019, the outsourcing market, (business process outsourcing) was worth around R1.3 trillion ($92.5 billion) according to Statista, having clocked in at R1,2 trillion ($85.2 billion) in 2018.
Why should companies consider outsourcing their services?
- Outsourcing saves money and cuts costs and allowing managers/employers to focus on their core business functions. This allows management to play a more strategic role by concentrating on other crucial aspects, such as operations and the financial growth of the business rather than having to deal with routine issues and activities.
- Some of the top challenge’s businesses face include hiring new employees; increasing profits; employee healthcare; growing revenue and managing cash flow. Through outsourcing, companies can eliminate two of those challenges; the need for hiring employees and providing them with healthcare.
- When businesses outsource their functions and staff, they are quicker to innovate, which improves their customer experience and can decrease their prices of service delivery thus making them more competitive.
- When businesses outsource their operational needs to an outsourcing partner, they gain the proficiency of labour relations experts that bring years of experience to complex outsourcing projects. This leads to an increase in productivity and efficiency in the process thereby contributing to the organization’s bottom line.