Outsourcing solutions have evolved since its inception in the late 20th century. At first, outsourcing was motivated by cost-saving objectives and involved tasks that were of low priority.

Companies used to outsource only minor tasks, but over time, they’ve started outsourcing more important ones to stay competitive and agile in the market. Nowadays, even tasks that are central to a company’s operations might be outsourced.

Simply put, outsourcing is when a company hires another party to handle specific tasks or roles that aren’t done in-house. This could involve hiring an individual or another company, and the service provider is usually paid for their work unless there’s a different arrangement.

Outsourcing became popular as a business strategy in 1989 and took off in the 1990s. However, there’s still debate about its impact. 

Some argue that outsourcing takes away domestic jobs and harms the local economy, while others believe it promotes a global free market, boosting efficiency and competitiveness. Despite these differing views, it’s clear that outsourcing plays a significant role in today’s business world.

What are the Various types of outsourcing?

There are various kinds of outsourcing. Let us have a look at them. 

Onshore outsourcing

These are the outsourcing companies from a local company or a freelancer. 

Nearshore outsourcing

These are the outsourcing services from a company or a freelancer that is situated in a neighboring country in the almost same time zone. 

Offshore outsourcing

These are the outsourcing services from a company or a freelancer that is situated abroad in a different time zone. 

How Does Outsourcing Work?

To make outsourcing work well, it’s key to build a strong relationship and see it as a partnership. Clear expectations and project details should be outlined in the agreement, so both sides know what’s expected. 

Usually, the business and service provider meet to talk through everything before finalizing the contract. It’s also crucial to agree on a rate or fee upfront, so you can plan your budget accordingly.

What are the benefits of outsourcing?

Some of the benefits of outsourcing include 

Lower Labor Costs

Outsourcing certain tasks to other companies can help you cut labor costs. Instead of hiring and paying employees yourself, the third-party company takes care of it. They handle pay, benefits, and training, letting you focus your budget on your core team. Outsourcing can also save you money on equipment. 

Sometimes, it’s cheaper to hire an outside company rather than buy new gear or change your processes.

Access to More Talent

When you outsource to specialized companies, you tap into a wider talent pool. These companies often have access to candidates from different parts of the country or even globally, especially if their roles are remote. 

Also, they have their recruiters to find the best people for the job, often with pre-screened candidates who already have the right skills.

Boosted Efficiency

Professional outsourcing services let you move non-core tasks to experts who specialize in them. This leads to better productivity and cost savings. 

By focusing your resources such as hiring, training, and facilities on your main business functions, you can operate more efficiently. Outsourced employees often come with established processes that can streamline operations.

Staff Development

If a big project requires skills your team doesn’t have, on-site outsourcing can help. You bring in contractors to work alongside your employees, giving your team the chance to learn new skills. 

Meanwhile, outsourced workers can handle day-to-day tasks. It allows you to focus on training and developing your core staff.

Most Commonly Outsourced Services

Let us discuss the most common outsourced services that can help you focus on your core business tasks. 

Information Technology (IT)

In today’s digital world, companies outsource IT services and it is skyrocketing. More than 90% of large companies outsource their IT work. This is especially common among small businesses because it helps them save a lot of money.

Web Design and Development

A good-looking and functional website is crucial for any brand. It is what makes you stand out from the competition. Web design and development require specialized skills, so it’s worth investing in quality work, especially at the beginning. 

This can include everything from your brand’s logo to the layout of your website. However, small businesses and start-ups often don’t need a full-time web designer or developer. It makes outsourcing a smart choice.

Social Media Marketing

Being present online is essential, and social media is one of the best ways to build brand awareness and reach more people. Although navigating social media effectively requires skill. Social media marketing is a booming industry, with revenues of over $137 billion and growing by 25% each year. 

Users appreciate transparency, and trends change often as platforms update their features. That’s why having a professional manage your social media is crucial. For small to medium businesses, outsourcing this role can be wise, as you might not need a full-time social media manager in the early stages of growth.

Human Resources (HR)

HR is a key part of any company, especially as your business grows. But when you’re just starting, it might be better to outsource HR and payroll functions. It’s important to choose an onshore provider since labor laws vary by country and need to be followed closely.

Call Center/Customer Service 

Running an in-house call center can be expensive when you’re trying to make sales or support your existing customers.

Outsourcing customer service and telemarketing can save you money and boost efficiency. By outsourcing you will be able to offer 24/7 service. This gives you an edge over competitors and improves your brand’s reputation.

Digital & Content Marketing

Digital (SEO) and content marketing are some of the most commonly outsourced services today. This is for a good reason and that too if you’re in eCommerce. To connect with your customers, you need content for your website, email campaigns, blogs, and more. This type of marketing is key to driving sales. 

If you can’t afford a full-time writer or editor when starting then outsourcing digital content is a smart move.

Cargaison Express for outsourced IT services

Some of the most common outsourcing services in 2024 are directly related to technology and innovation. Although most of the time, outsourced services are non-core tasks, many companies today are outsourcing their core tasks to increase efficiency and productivity and help boost sales. 

Are you looking for outsourced IT services for small business? Well, if you are, then you can get in touch with Cargaison Express. We are experienced and can help you with your strategic core functions and non-core routine functions as well. 

Get in touch with us today!