Outsourcing: When Does It Become a Viable Business Solution?

When does outsourcing become a viable business solution? Today I’ll answer this question for you. In case you did not know, outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally, i.e. in-house, and sometimes involves transferring employees and assets from one firm to another.

It’s a fact that having a ‘go-it-alone’ attitude is hardly a trait that is unique to South Africans. Around the globe there is a sense inherent in both individuals and businesses that in order for success to be real, it has to be achieved independently.

This mind-set is a difficult one to overcome, and often sees businesses struggling for years, and even failing, because they don’t want to accept the help of others. Outsourcing could actually help these businesses (in my humble opinion).

Going it alone is not the most viable business solution

Even the biggest businesses in the world, companies like Google and Amazon, outsource their needs to external companies when they fall outside their focus areas, or when having a partner can supplement their existing offerings.

Google may have a staff complement of over 85,000, but when they wanted to expand their pay per click advertising strategies, they looked beyond their existing employees.

They hired contractors skilled in marketing techniques, who were better placed to highlight the value of, and see businesses succeed in, an area that they were relatively unfamiliar with.

This not only saw them being able to focus on their core business – ensuring that organic search results were efficiently and effectively ranked – but also saw their business growing to the point where Google Ads, or AdWords as it was formerly known, earns the company more revenue than their other business components.

Had Google adjusted their focus to handle AdWords internally, their success in the pay per click domain may have come at the expense of their organic search reputation, if success had resulted at all.

Outsourcing provided them with the opportunity to expand without significant risk, relying on the experience and expertise of others to further their market-share, to the point where Google and AdWords have become ubiquitous.

Even in a case where operations are essential to a business’ success, it is often best to outsource them, as Amazon discovered. While they spent many years, and over $50 million, developing their own systems for inventory management, Amazon found that outsourcing their inventory requirements provided them with greater functionality, and allowed them to focus their efforts on the areas that they could truly shine in – boosting their reputation, and improving customer satisfaction.

And while these two examples show that outsourcing is beneficial for large businesses, that’s not to say that Small and Medium Enterprises cannot take advantage of outsourcing opportunities as well. In fact, SMEs and start-ups are often the businesses that need outsourced services the most, as their limited budgets restrict the number of people that they can employ, and the skillsets that are therefore available to them.

When does Outsourcing become a viable business solution?

Being able to partner with a company that has the experience you need in areas that you cannot afford to invest your time and efforts in provides new businesses with the opportunity to grow sustainably, and focus on your core business model rather than the humdrum maintenance of your IT systems, for example.

IT services are, in fact, one of the easiest areas for businesses to outsource, and one that can add the most value, whether you are a well-established company, or one that is starting out. Investing in managed IT services can see your business making use of the latest technologies, helping you to reach your goals, while at the same time providing your teams with the tools they need to operate productively and efficiently.

A managed IT service provider like Solid Systems works with you to find the right technologies for your unique needs.

Working with the outsourcing right partner ensures the safety and security of your systems, as they perform regular upgrades and updates as they are needed, and monitor your infrastructure to ensure that your business operations are never interrupted.

When you work with a managed IT service in Miami (or any other city where you are based), you aren’t investing in an individual to join your team. You are gaining the experience and skills of a whole team of experts, ready and willing to put your business’ needs first, see you thrive, and resolve any issues that might arrive quickly and efficiently.

Don’t split your company’s focus by trying to handle every situation in-house. Turn to experts in the field of IT to manage your systems, and focus on your core business. That truly is the most viable solution for businesses big and small.

More info about Solid Systems

Since 2003, Solid Systems has specialised in delivering leading technology solutions through Managed IT Services, and offering guidance to organisations in South Africa and abroad, in the most human way possible.

As an IT company, we love technology and the exciting ways that it evolves, and are constantly improving the tools that we use. But humans are at the heart of our business. That’s why we value each relationship and prioritise a personal approach, finding solutions that deliver results for companies in the best way possible.

With our highly skilled and passionate professionals behind us, and the latest and most sophisticated tools at their disposal, we ensure that the businesses we work with are constantly evolving, and can step into the future with confidence.

Are you considering outsourcing some of your business’ departments / functions? Do you agree with my answer to the question? Leave a comment below and let me know.

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