Outsourcing is a business management strategy, consisting in hiring a provider to carry out a service which was previously internally undertook by the company's own staff and with its own resources.
When thinking about outsourcing a service, most often payroll or accounting come to mind, but have you ever considered outsourcing administrative tasks which aren’t a competitive advantage of your company?
The preference to outsource administrative services usually grows significantly as years go by, due to the fact that it is essential for smooth operation in the short and long term for any company. If you have ever considered outsourcing, but due to insufficient information or hesitation, you have never make the decision, this article will help you solve some of your doubts.
Benefits of outsourcing
The first benefit obtained is efficiency, as your company won’t have to allocate resources to day-to-day administrative activities. Outsourcing allows staff to focus on more specific and strategic tasks within the organization.
Additionally, you shouldn’t underestimate the fact that some fixed costs will become variable costs, which is essential and key in cash shortage situations and a great advantage for small enterprises willing to save costs.
Also, quality and reliability will rise, as tasks are completed by a specialized team, so you can be reassured that all tasks will be finished on time but without depending on a specific number of people from your organization.
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What administrative services can be outsourced?
Surely most of us have worked in very resourceful companies where the administration department, usually a great support, seems to have magical powers, as they are able to carry out all tasks that nobody in other production departments wants to do.
Every organization and every business is different. Therefore, there are endless particular tasks and approaches that depend on the organization’s needs. The range of administrative tasks goes from payments, invoicing, collections, calling suppliers, negotiating with banks and even taking out insurance policies.
The key is that all these financial planning, personnel and record keeping and billing tasks which require exceptional care, full confidentiality, friendly manners and great nimbleness in order for the rest of the business activities to work smoothly and to prevent small day-to-day issues.
When is it the right time to outsource administrative tasks?
The fact that the business and the business owner benefit from lower fixed costs should mean that any time is the right time to take the step. The biggest mistake would be to reduce costs in marketing, sales or research programs, as they are key areas guaranteeing the future of the business.
However, outsourcing administrative tasks is usually a difficult choice for a company, as these processes are delicate and sensitive. Managers are reluctant to outsourcing administrative tasks due to insufficient information, mistrust or because they think only they can do the job. But the truth is very valuable time is wasted in the process.
Just imagine how productive you would be if you could focus on key competences which provide real added value, such as attending meetings with clients or producing quality reports, while having the certainty that all delegated administrative tasks are being professionally handled. Certainly, this would mean one headache less in the, already difficult, day-to-day management of your company.
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