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Friday, June 27, 2014

The basics and necessity of business process outsourcing as a service for a business

Human resource management
Employee productivity is influenced by managerial decisions
By Phil Steel 

If you look at any group of people, you will find a mix of personalities, strengths and weaknesses.  With the right leadership, the strengths and weakness of a group can be mixed correctly to create a winning team. The trick is to know where to access outside help, and where to use your own resources.

The key to this success will come from within your group—but by correctly mixing outside resources. This cannot be expressed more and seen more in business organizations. No matter what the size of a company is, the chances of success will stem back to the management of the company, and the manager’s use of internal and external resources.

Focus on your strengths

This is where outsourcing comes in.  A company is created to generate an income. Normal thinking would be to cut costs wherever possible to reduce expenses. However, this is where most businesses ultimately fail. Company personnel are hired due to the knowledge that they have in a particular field. This is where they excel, and their strengths are the key to excelling in a company. The biggest mistake people make in both their professional and personal lives is to focus on weaknesses and to overlook the strengths. You have staff that work well in production, shipping, and customer relations—do not take these talents and try to train them into accounting. Know your company’s strengths, and outsource the areas that are missing. This allows you to have employees that are happy with their job position; they are doing what they enjoy, and you are relieving the pressure of having to take on a new task that is lacking in your company.  

You need to spend in order to save

Outsourcing is viewed as another expense, but is it really? As a business owner, you cannot be expected to manage all aspects of your company. As it grows, you will find yourself being spread thinner and thinner until daily operations become neglected or missed. Small details such as the rising cost of shipping a product, can add up to a great financial loss at the end of your fiscal year. You may have saved money by taking on all operations on your own, but you lost far more by missing details in your payroll, expenses, and tax deductions. The saying that it costs money to make money is very true. The key is to spend money in the right places so your return can be much higher.  

Outsourcing puts the control back in your hand

Outsourcing parts of your company operations does not mean that management loses control of its company. Rather the opposite. If you outsource parts of your operation to a dedicated company that specialized in that area, you will find that you will gain more control over your own company than you had realized was initially lost. A company that specializes in human resources, for example, can give you detailed reports on your employees and areas to improve, can streamline your hiring process with time savers such as per-screening, and can increase your safety ratings by lowering your hazardous incidents.  

You can meet with your outsourcing company as often or as little as you deem necessary and, while they do the work for you, you receive the final information that you need in the format you need it in, and as often as you need it. This information can now be used in your decision-making process—minus the time it would have taken you to gather it on your own.

Outsourcing is not a new idea; it has been used successfully in organizations for decades. The larger the company, the stronger the need for outsourcing, but that does not mean that small companies cannot benefit from the same services. In 2014, the main reasons that companies outsourced a portion of their business was to reduce expenses. While outsourcing was an expense, it was also a means to save money.  

Management is one of the number one reasons that a company will either succeed or fail. Proper personnel within management are trained to recognize where they excel and where they need to improve. Look strongly at your own organization. Are there areas that need strengthening? Would strengthening those areas streamline processes and reduce workload and time?  These are the areas to consider using 3rd party employment for. You will find that the money you spend to hire professionals who are trained in these areas will be money that is well spent.

About the author: This article was written by Phil Steel, an outsourcing consultant, who offer services that can make your business run more smoothly and make it easier for you to delegate the tasks you don’t have time for.

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