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Is outsourcing work worth trying for your business?

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Is outsourcing work worth trying for your business?

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If you run a business that employs staff, then you will know how much this impacts your company finances. From paying their monthly salary to sick pay and holiday pay, the real-world cost of employees to a business is huge. Along with the financial side, they also have an operational cost in terms of needing desk space and all the necessary tools provided to work.

All this has led many businesses in the UK to consider outsourcing work instead to a contractor or freelancer. Many sectors have gone this route the UK engineering sector, for example, saw a two-thirds rise in five years as of 2017 in the number of contractors used.

Why has this outsourcing of work become so popular, and is it worth trying yourself?

Outsourcing has many benefits

When it comes to what outsourcing work can bring to your business, there are some very good reasons to do it. The below are some of the most important ones to know:

  • Reduced costs compared to employing a salaried, full-time member of staff or team, outsourcing to contractors or freelancers is much cheaper. To begin with, you only pay them to do a set job over an agreed period rather than paying them to sit around waiting for work to come in. In addition, you do not have to get involved with sick pay or holiday pay either, which will bring your HR costs right down. This is not to mention the money you save on not needing to find them office space, buy them equipment, etc. For instance, if you take the medical industry, outsourcing the front desk operations by hiring a medical office virtual receptionist, can significantly help reduce costs. They can handle essential tasks like patient scheduling, answering calls, and managing records remotely. This eliminates the need to provide physical office space, equipment, or benefits like paid leave. By outsourcing these responsibilities, medical practices can focus their resources on patient care while keeping overhead expenses under control. This solution also ensures seamless operations while maintaining high-quality patient care.
  • Expert help on hand another great reason to outsource is that you always get expert help in the required area. This means that the job gets done quicker and to a higher standard than with someone who is not an expert doing it. Take running a senior living facility, for instance. It definitely requires Hospitality Support, but instead of assembling an in-house team that might lack the necessary experience, why not outsource the task to professionals who already have the skills and knowledge? Similarly, if you are managing an online retail store, cybersecurity is essential to safeguard your operations. In this case, outsourcing to a company with specialized expertise can make sure you are covered by professionals with the experience this critical area demands.
  • Business flexibility for many businesses, one of the main reasons to outsource work is that it enables them to take on projects. This dynamic approach to business ensures that you do not lose out on important contracts or jobs. Take the construction sector as an example. In this industry, deadlines and workloads can be highly unpredictable. If the salaried staff are already engaged in ongoing projects, bringing in Staffing solutions for industrial projects allows the company to meet new demands without overburdening the existing team. These contractors, often specialists in their field, can step in to handle specific tasks or entire segments of the project.

What about payroll?

One question that you might be worried about is the work around paying any contractors to whom you may outsource work. While this can be tricky, there are some fine contractor accountant services around to help. These companies work with you to handle the payroll aspect of any outsourcing you have done, so you do not have to worry about it.

Is outsourcing work right for you?

The original question of this article was if outsourcing work is really worth it. Although you have to look at your own business needs first, for many the answer is a clear yes. The ability to access expert help but without any of the costs or setup of salaried employees makes it a viable business approach for many companies in the UK.

Sources:

https://www.businessnewsdaily.com/7004-employee-outsourcing-tips.html

https://www.entrepreneur.com/article/217195

https://www.flatworldsolutions.com/articles/benefits-of-outsourcing.php

Andy McGowan
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