Why Do Companies Outsource Work?

While it’s difficult to pin down exactly how many people work as contractors, it’s estimated that 35% of the American workforce is now doing some amount of freelance work. With the ready availability of project management platforms and communication apps, a full in-house team is no longer necessary to build a successful company.

Outsourcing work doesn’t have to be a big undertaking. You might find you need the highly specialized skill of a freelancer (like a freelance graphic designer or web developer), or perhaps a virtual assistant with a variety of skills might better suit your needs. You can outsource work for almost any job and for almost any price. It’s simply a matter of finding the right match.

From small specific businesses to large companies, outsourcing to skilled contractors is increasingly common and expected to become the norm. And there are pros and cons for both employers and contractors alike.

Is it right for your business? Why do companies do it? Here’s why your company should consider outsourcing some work.

Hiring Is Expensive and Time-Consuming

The process of finding and vetting qualified candidates, then training new hires can put a strain on companies. The time and energy spent creating and posting job openings, analyzing candidates, scheduling and completing interviews, and waiting for onboarding can be significantly cut by looking to agencies and websites (yes, like ours!) that will pull qualified contractors for you.

The Bureau of Labor and Statistics has found that the median length of time in a job as 2.8 yrs median for 25 to 34-year-olds. Instead of regularly going through the full search, hire, and onboarding process, look to contractors for jobs where you see regular turnover. Even if you change contractors at the same rate, the overall costs will be lower, as an agency does a lot of the heavy-lifting where recruitment is concerned.

And of course, companies can benefit from outsourcing to remote workers and from eliminating the overhead of additional office space and technology — freelancers pay for and use their own.

Outsourcing Maximizes Someone Else’s Expertise

Think of it this way. All companies have digital needs, from networks to websites to computerized cash registers, but not every company needs their own IT department. The solution? Look for a contractor with the particular IT skills you need.

If you have a role that needs to be filled, but you don’t need an entire department or even a full-time employee to do it, consider a contractor with the right expertise to fill in the gaps. 

Small businesses may not need a full-time design or marketing department or a bookkeeper. Often owners try to DIY some of these tasks with the help of the ever-expanding universe of platforms and apps automate tasks for novices. But outsourcing these tasks to contractors instead makes perfect sense because even with the best tech, the work still takes time. With someone else using their skills to meet your needs, you and your team can focus on your day-to-day tasks and on growing your business instead.

Short-term projects are another great example of a situation where outsourcing saves companies of all sizes time and money. In the time it would take to find and train a new hire for a specific project outside your company’s niche, a contractor can have it all wrapped up for you while they move on to their next gig.

Remove the Limitations on the Talent You Can Find

When you look to contractors rather than full-time hires, you often find someone with skills beyond those you were in search of. Contractors often do many different jobs and constantly update their skills to be more marketable. When you partner with them, you get more than you bargained for (in a good way). They bring all their skills, even if those weren’t the ones you were focusing on initially.

Plus, remote contractors allow you to look beyond geographic boundaries and find the very best person for the job. You are no longer limited to your area or to hiring someone willing to move. No need to sweeten the pot with relocation expenses. And there can be advantages in certain positions, like customer service, to hiring someone working from a different time zone.

It goes without saying that outsourcing work isn’t the right solution for every situation. There will always be roles your company needs to hire as part-time or full-time employees. But if you’re in need of short-term help, hoping to build your business without straining yourself or your resources, or in search of the perfect candidate regardless of location, outsourcing might be the perfect solution for you and your team.

Would you like to learn more about how a virtual assistant could be the perfect outsourcing solution for your needs? Contact us today for a free 30-minute discovery call and see if Don’t Panic’s team of assistants can help you.