Why is outsourcing important for companies?

Outsourcing in companies consists of the externalisation of one or more services in order to save costs. In essence, the idea is that a company or freelancer takes over the provision of a service or the performance of a task.

What does this practice bring to companies? Above all, we can highlight the following cases:

1. Outsourcing in companies reduces costs

The practice of business outsourcing, in the first place, reduces costs. Not surprisingly, the people who are going to carry out the activity do so by means of a service contract with the company, so that the company does not have to pay Social Security. This is the first interesting part to gain in competitiveness.

2. Optimisation of the use of resources

Secondly, outsourcing is a good option for an optimal use of resources. Why? Because the company’s employees will focus on core business activities. Often, especially in SMEs, a lot of time and resources are wasted on repetitive actions that could be delegated. In this way, talent will be directed towards adding value.

3. Reducing financial risk

Outsourcing is a technique that makes it possible to reduce financial risk. Remember that these costs are no longer fixed for accounting purposes because the relationship with the company or professional is contractual, they are not part of the staff. Moreover, as most contracts can be terminated relatively easily, the company’s risk will improve; if it is necessary to ask for financing, this is a point in its favour.

4. Increased overall productivity

Productive specialisation is, by definition, preferable. And when this is done, the overall productivity of the company will increase. With the same resources, better results will be achieved and competitiveness will be enhanced. In the end, these elements count for a lot in the bottom line.

5. Flexibility to change

Flexibility in the face of change is another reason to opt for outsourcing. Faced with a changing situation, it is possible to change company, hire or terminate a contract with a certain degree of ease. This scalability, which is not always possible in the conventional labour market, is to be welcomed in specific situations. In short, this modality makes it possible to take better care of work, even work that was not originally foreseen.

6. Working with specialised staff

Outsourcing provides another added advantage: you work with personnel specialised in the area to be delegated. And this, once again, is advantageous because, whoever is qualified, is able to do a task better and do it in less time. Therefore, it is useful to maintain levels of excellence in the outsourced area.