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Outsourcing 101: Everything You Need To Know About Outsourcing

Feb 14, 2023 • 10 min read

Outsourcing 101 Everything You Need To Know About Outsourcing

Managing a small or big company’s daily operations should be a praiseworthy action! We can’t imagine how busy your days can get with all the administrative work—customer service, bookkeeping, sales, hiring, etc. However, the time you put grinding on these tasks can definitely be spent on the core activities of your business that will surely grow your company. Trust us! We understand that you want to be active and participative in your organisation’s operations. Still, your time will be more valuable, focusing on projects that will grow your business!

Maybe you haven’t tried outsourcing before or have no idea what it is. Don’t worry! The DigiWorks Team got you! Not only are we going to introduce you to your teams, but we will also walk you through the overview of what you can outsource and how you can do it! Read further in this article and learn how outsourcing can help you run your business successfully.

You’ll learn:

  • Definition of Outsourcing
  • When is the best time to outsource?
  • 5 Reasons why your administrative tasks should be outsourced
  • What tasks in your business you can outsource?

Ready to build your remote team?

Use the DigiWorks platform to hire, manage, and pay remote talent from all over the world.

Definition of Outsourcing

Outsourcing is defined as hiring freelancers or agencies, like DigiWorks outside your company to run specific projects and activities for your business rather than delegating it to your in-house workers or hiring new employees. It helps companies manage their operations more efficiently without being burdened with the additional workload. It is also known as a more cost-effective option when an organisation is in need of a new worker.

Companies can outsource a wide range of activities, like customer service and other minor projects that you can entrust to another employee. The best thing about outsourcing is you don’t have to provide extra workspace in your office. You can easily delegate these tasks to remote workers and have global teams with whom you can work virtually, all with the help of advanced technology! With all the productivity tools and communication software, you can assure that real professionals and experts will complete these tasks!

Two types of outsourcing

1. Onshoring

Onshoring is synonymous with “domestic” outsourcing, which basically means transferring some of a company’s business processes to teams located in the same country. Instead of hiring new staff from the same proximity, you can hire contractors or freelancers from more affordable locations countrywide.

2. Offshoring

Offshoring is outsourcing the processes or operation of a company to overseas or global teams. In DigiWorks, you can find remote workers from emerging countries, such as the Philippines, South Africa, and Nigeria, to run some of the tasks and projects from your company. That is considered more cost-effective since you can hire someone from countries with reduced labour costs.

When is the best time to outsource?

Your business operations might be doing well, or maybe, you can still manage to squeeze all your tasks into your schedule. But, how would you know if it is necessary to outsource? Here are some factors to consider before you hire an outsourced employee:

  • There might be some specialised tasks that you and your in-house workers might lack expertise in. For some projects, such as web development or graphic designing, requires hiring someone specialising in those fields. That might be the best time to hire a professional who can handle those tasks more effectively.
  • If you want to grow your business, you might want to focus on strategizing and running the core functions of your company and consider outsourcing the minor projects.
  • Your team might seem like they are efficiently handling their tasks, but have you considered the stress from their workload? Some of them might be having trouble but couldn’t address it. Maybe it is time to take some of their tasks and ask a freelancer to do them instead.
  • There are times when an employee is on leave temporarily, you can hire an outsourced employee to fill in their role rather than hire a regular worker.

5 Reasons why your administrative tasks should be outsourced

Many companies and small businesses tend to outsource their administrative tasks, especially during the times when they get busy growing their business. To learn more about the benefits of outsourcing, read the following:

1. Allows companies to focus on the internal tasks

Managing a business means taking every opportunity you get. When you see that there are ample opportunities that can help grow your company, focus on them! That is why outsourcing is the best option if you want to take your hands off the repetitive administrative tasks and put your attention on working on big projects.

One of the time-consuming tasks is customer service. That is something that you can delegate to your outsourced employee and let them deal with the inquiries and concerns from the customer. Now, you can move on with other activities that might be more significant to the business!

2. You can meet top global talents.

Are you concerned with the quality or standard of your outsourced employees? No worries! Outsourcing, especially offshoring, will introduce you to a larger talent pool, which will help you take advantage of hiring an outstanding professional in their field. Remote work has a competitive marketplace, you can assure that you’ll find the perfect candidate who can qualify for the skills you are looking for and with lesser labour cost.

You probably experience hiring candidates who seem so competitive with their credentials yet get too overwhelmed and pressured when given tasks. In remote work, you can find virtual assistants, operation managers, content writers, and other well-skilled experts who work efficiently. You can even save money from training sessions if you find someone who has a comprehensive skill set and experience in their work.

3. Maintains flexibility in the workplace

Some projects don’t need regular employees. For instance, if you need someone who can change your company logo, you won’t need a full-time graphic designer. Outsourcing allows you to hire project-based freelancers who can bring in your company only when you need them.

4. It is relatively much safer.

Imagine hiring someone and paying for their training, just for them to walk away the next day. Turnover is most definitely costly and disrupts the overall operations of your company. Outsourcing eliminates all the risks and allows you to have a smooth flow of operations.

There might also be times when one of your employees takes leave, and you need someone to fill in their role. You can hire an outsourced employee rather than adding additional in-house staff. After a month, your employee might be back on their feet, and you wouldn’t want to fire the new employee you just hired.

5. No staffing means lesser cost.

Hiring an in-house part-time or full-time employee is too expensive! Imagine all the costs you need to consider, including their benefits, insurance, onboarding, training, etc. Meanwhile, outsourcing allows you to hire project-based employees who only come when they are needed.

What tasks in your business you can outsource?

1. Value generating activities

You can hire freelance virtual assistants to manage all your emails and schedule events. Building a connection with your customers is important, but the tasks to do so can easily be delegated to your outsourced team. There are Virtual Assistants who act as personal secretaries who can set up reminders, schedule appointments and events, sort out your emails, and send auto-responses.

2. Social Media Management

Before your business can thrive, guarantee that you have to create and post content on your social media platforms while constantly communicating with your followers and customers. These tasks can get overwhelming, and your DMs can get crowded. You can outsource these tasks to someone who can create daily content, regularly reply to comments, filter the comment section, react to relevant posts, and increase your exposure on your social media without you actually handling it.

It is essential to keep your accounts engaging to help you find potential customers and have solid followers who will promote your business for you. There are plenty of social media marketing managers who can manage your accounts and ensure that you are active on every platform to promote your business.

3. Graphic Designing and Web Developing

There are plenty of tools, including Canva and Procreate, where you can easily create aesthetic visuals for your website, blogs, company logo, presentations, and social media content. However, doing it yourself will surely take up so much of your time, which you could have spent on far more significant projects. It is easy to find graphic designers globally since many artists are starting to take over the remote work environment. Most of them are usually project-based, so you don’t have the need to employ someone full time.

4. Payroll Management

Suppose you are handling global teams who live in various locations with different policies regarding the payroll system, considering all the legal requirements. In that case, it might be best to outsource this task. Many experts in the market are knowledgeable about tax laws whom you can hire to ensure that there will be no problems when it comes to your payroll system.

5. Bookkeeping

With all the financial statements, receipts, bills, and reports that you need to handle, you probably once misplaced an important document. Paying your taxes right and reporting all the payables, receivables, and other factors related to the finances of your company can be strenuous and demanding. Now, it is easy to find financial managers who are willing to handle all the financial reports to help you have a clear overview of your financial status and develop business strategies. .

6. Data Entry

Making written documentation of all the transactions and activities within your company might be a little demanding. Now, you can outsource data entry and ensure that all your product pages are updated and all the transactions in your enterprise are well-documented and organised on spreadsheets.

7. Human Resource

Human resource is not just about hiring people over and over again. Recruiting contains several processes that will surely eat up most of your time. Plus, it doesn’t stop there. You also have to do all the onboarding, training, and employee management to ensure that your workers are well-taken care of and are fulfilling their responsibilities. Outsourcing your HR is an advantage to help you manage your teams better and ensure that you don’t miss anything important.

If you need help managing your global remote teams, DigiWorks is a place to go! We will not just introduce you to top talents around the world, but will also help with training and overall remote team management. You can ensure that all your remote employees are well-skilled, provide quality output, and perform efficiently.

8. IT

Do you need someone who can provide your company with cyber security and help your workers troubleshoot and resolve technical difficulties? No worries! Even IT professionals can be outsourced to ensure that there is a smooth workflow, especially with your remote teams, and all your files are safe!

Ready to build your remote team?

Use the DigiWorks platform to hire, manage, and pay remote talent from all over the world.

Outsource Now with DigiWorks

You are probably wondering where you can find the best team to outsource your company tasks and projects. DigiWorks is one of the leading platforms when it comes to recruiting top talents globally. You can find full-time and part-time employees, as well as freelancers who will do an efficient job growing your business! Many companies have already teamed up with DigiWorks and trust us when it comes to remote workers. It is your time to find employees from around the world who will give you the best outcome possible!

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About DigiWorks

DigiWorks is an easy-to-use platform that helps small businesses and start ups hire amazing remote talent from around the world. DigiWorks offers a way for you to hire, manage and pay people from all countries. If you find an amazing virtual assistant from Philippines, a content writer from Nigeria, or operations manager from South Africa – manage and pay your entire team from one platform with no hassle.