Outsourcing non-core roles is an excellent way to reduce operating costs and streamline business processes. In addition, it cuts down on hiring and training and removes some other financial burdens of an expansive workforce.
Consider your business’ needs when reviewing the areas where outside agencies or contractors can help fill non-essential roles. Every company will have a different view of what competencies are essential to functioning. For example, an attorney group will likely not want to outsource legal efforts, while it could make perfect sense for a marketing agency.
Accounting
If your company’s finances are simple, having a dedicated in-house finance department may not make sense. Let a member of your senior team handle minor financial management, but leave the heavy lifting to an outside accountant.
Many companies find that they need to keep a central finance manager but can outsource certain aspects of the department. Payroll is one aspect where outsourcing can have a substantial positive impact on internal staff. It takes some pressure off finance and human resources departments, leaving them time and energy to focus on growth.
Benefits Management
Managing benefits, such as health, life and workers’ compensation, often falls to the HR department. However, asking HR staff to focus on these tasks takes their attention away from their core roles of attracting, hiring, and maintaining a top-quality workforce. This distraction is unnecessary and avoidable with outsourcing.
You might dip your toes into the water by looking into benefits management companies to take over one part of your programs’ oversight. For example, find a workers’ compensation PBM to handle pharmacy benefits. It will handle prescription use monitoring, price negotiations with drug manufacturers, and claims so your HR department doesn’t have to.
Shipping and Receiving
Unless you are in the business of sending or receiving packages, there’s a good chance your company does not need a dedicated logistics team. However, you still need to know what is coming and going, especially when it comes to critical supplies.
Logistics is one of the most straightforward systems to outsource, and new technology is making it even easier. Now, even freight carriers can benefit from using a third-party logistics provider to handle the movement of goods. For other businesses, contracting with a local shipping or mailbox service may be more economical.
Tech Support
It is impossible to deny technology’s ubiquitous influence on modern business practices. However, that does not mean your staff is the best solution for handling problems when they arise. Outsourcing IT tasks is usually a solid management strategy unless you run a technology firm.
When looking for an IT support provider, it helps to determine precisely what type of help you need. This information will guide your final solution. For example, a single contractor may suffice if you have minimal needs, while a larger, more complex system may require more support.
Marketing
Marketing is a task that often falls to whichever administrative staff is willing to do it. This is a mistake since it doesn’t make the most of your company’s opportunities for image advancement. Instead of using a piecemeal strategy, consider outsourcing your marketing efforts to a contractor or outside firm.
Look for a marketing company that offers —at a minimum — the following core competencies:
- Complete knowledge of your products and brand strategy
- Graphic design and writing experience
- Social media management experience
- Public relations
Legal Tasks
Having an in-house attorney on your payroll or retainer can be very expensive. Unless you need these services daily, outsourcing legal services is often a better choice. When you do, you’ll get benefits such as 24/7 access to attorneys, a wide range of experiences from different attorneys, flexibility to meet changing business needs, and lower overhead costs.
Some of the tasks that an outsourced legal department handles include reviewing contracts, assessing copyright status, and responding to any claims against your company. These are all tasks that must be done, but that can take valuable time away from other critical management tasks.
Outsourcing non-essential roles is an excellent way to lower overhead and increase the productivity of existing staff. When deciding what tasks to outsource, choose jobs that are not part of the company’s core mission, such as marketing, benefits management or payroll, to maximize the benefits.