Welcome to The Ledger where we sum up the latest finance and accounting news and trends for you. On this week’s entry, we’re diving into the topic of outsourcing and what that means for companies today. Read on to see why outsourcing talent could be the key to eliminating debt, how to get started with nearshoring, how to start outsourcing effectively, and why outsourcing could be the ‘new normal’.
Effectively Eliminate Your Debt With Outsourcing
Have debt? Try outsourcing. Seems like a pitchy infomercial, but in reality, it works. After the pandemic hit, almost three-quarters of small businesses took on debt to offset their loses. But with COVID-19 coming to a screeching halt in the near future, companies are now shifting their focus to paying down this debt faster. Here are three ways organizations can expedite the process:
Reduce unnecessary costs – That means eliminating ‘frou-frou’ expenses that don’t add any value to the company.
Streamline operations – Outsourcing menial tasks can help offset the expenses (salary and benefits) that come with hiring on a full-time, in-house employee.
Invest in the future – Once you’ve paid off your time, it’s time to reevaluate where to allocate your money.
To explore how outsourcing can help save you money and prevent your company from spiraling into debt, read the full article on Forbes.com.
From Offshoring to Nearshoring: How to Get Started
You’ve probably heard of offshoring. It’s a concept that’s been around for decades but hasn’t been popular until recently. However, most companies are hesitant to use the offshoring model for a variety of reasons: time-difference, quality control, and language barrier. Despite the uncertainty, there’s a new method that’s becoming well-liked amongst organizations – nearshoring. Think traditional outsourcing but in a more localized sense. For example, a company in the United States might move a part of their operations to Mexico to reduce overhead costs. However, before you make the move to nearshoring, ask yourself these questions:
Am I having a hard time finding local talent?
Does the project I need to outsource have an expiration date?
Is my company fine with remote work?
Once you’ve answered these questions honestly, you can begin the process of nearshoring your positions. To learn more, view the full article on Forbes.com.
Outsourcing Effectively - How to
So, you’ve decided to outsource a few of your projects. You’re ready to save money and get time back in your day. But before you go down that path, here are a few steps you can take to ensure you’re outsourcing successfully:
Make a list – Don’t just go with the first outsourcing company you come across. Begin by writing down a few of the names that were highly recommended or that had good reviews online.
Research – Google will become your close confidante during this process. This process will help you gain a clear vision of all your top candidates.
Keep location top of mind – Know where you want to outsource. Outsourcing in India is vastly different than outsourcing in Mexico. Consider language barriers and time zones when doing your research.
Schedule meetings – Just like you wouldn’t hire someone to babysit your kids without vetting and meeting them first, you shouldn’t outsource your work without meeting the candidate first.
To read the full article, head over to Forbes.com.
Outsourcing is Here to Stay
There’s plenty of things to appreciate about outsourcing. But what probably ranks as number one is the ability to adapt during unprecedented times. Sure, outsourcing was around long before the pandemic hit, but what makes it so great is that it will still be around even after the pandemic ends. According to a new report done by Clutch, 80 percent of small businesses plan to outsource this year. Likewise, Chelsea Kane, founder and sole proprietor of First Cup Morning Series, says that embracing outsourcing is essential for small businesses. Furthermore, more companies are moving more towards onshoring rather than offshoring due to comfort. Shilonda Downing, founder Virtual Work Team speaks on this issue – “It’s so attractive to outsource onshore because the contractors or freelancers can typically hit the ground running.”
To learn more about how outsourcing can help companies save time, grow their business, how to start doing it effectively, and work with experts in their needed field, view the full article on PRNewsWire.com.
Curious to learn even more about how to start outsourcing effectively? see how a customized outsourcing solution can help you augment your capabilities.