In the past two decades, outsourcing has grown, as a business discipline across sectors and geographies. For many, their first introduction to outsourcing had its roots in ICT with American companies hiring call centre operators in India and elsewhere thus ensuring that business was always open thanks to cost-efficient labour in the Global South and differences in time zone.
So, what exactly is outsourcing? It means the transfer of work responsibilities and decision rights to an entity outside the business. While outsourcing can produce significant economic benefits when done right, it is still not recommended for all businesses.
As Resource Intermediaries Limited, a people management company and one of the pioneers of business outsourcing in Nigeria celebrates its 15th anniversary, we zero in on what outsourcing means and how you or your company can benefit.
1 Outsourcing seems expensive but is cheaper in the long run: Confusing right? Well, when you outsource you tap into an organisation with people management competence. That competence is what you will be paying for and it will seem expensive but by the time you factor in the cost of expertise, flexibility and scalability, your organisation will gain, you will see your company making savings in the long run.
2 Outsourcing helps you focus on your core business: Let us say your business is banking but as a bank, you need to hire cleaners, catering staff, drivers and others. Why do you, as a banker, have to deal with these issues when you can simply outsource those non-core functions while you focus on the core business of providing banking and financial services and advisory? An outsourcing company like Resource Intermediaries Limited can provide functions like janitorial, front desk, field marketing, basic operations and other non-core services thus easing your business burdens.
3 Outsourcing provides objective analysis of your business: Starting a business is like starting a family, and growing a family can be time-consuming and also leads to sentimental attachment which is why sometimes when the company is overstaffed, the owner still feels the need to keep on the extra weight because they are family. Dragging around unneeded overhead can atrophy your business. With outsourcing services, staffing needs are strictly aligned to business needs. No sentiments.
4 Outsourcing saves capacity building costs: A true business outsourcing company is at its core a people management business and a key component of people management is capacity building. Outsourcing companies like Resource Intermediaries Limited are always training their personnel to deliver on the job. The training cost is borne by the outsourcing company while the recipient company enjoys the benefits because if an outsourcing company fails to train its staff it will lose its business.
5 Outsourcing saves time in many ways: Running a business and meeting the needs of your varied clientele base can be tough and time-consuming so imagine adding to the core business needs other requirements like payroll, insurance, health care, regulatory compliance and others. Getting an outsourcing company is a good way of focusing on your core business and avoiding the grey hairs that come from add-ons.
6 Outsourcing delivers competitive advantage to your business: The fact that you will have access to the best support services while you focus on your business will make your decision-making faster. This agility and ability to upscale and downscale where and when required are even more invaluable for the times we are in.
7 Outsourcing protects your core business from many liabilities: Professional outsourcing companies like Resource Intermediaries Limited assume full responsibility for liabilities that arise from the functions outsourced to them. This is a major benefit as it frees users of their service of harmful litigation and recovery of stolen items or funds by staff that could have been on the user’s payroll.