A good rule of thumb when you’re considering outsourcing is to simply outsource all those tasks which are not strategically central to your business. Your core business functions should remain in-house, with all those ancillary processes being good candidates for outsourcing.

Manufacturing

For several decades now, manufacturing has been a top choice for outsourcing, because the sheer cost of manufacturing in the US has been prohibitive. Whenever you’re starting up a manufacturing facility, you’ll need to purchase property, build a plant, acquire manufacturing equipment, and hire some very costly workers. For most domestic companies, this is simply not an affordable option, so you should consider whether the manufacturing part of your business should be done abroad to save resources.

Accounting

Some small businesses simply accomplish their accounting by using QuickBooks or other software accounting packages. However, the biggest expense related to accounting is generally related to the people costs, i.e. hiring qualified personnel and retaining them. That’s one big reason why your accounting function is a good candidate for outsourcing.

Technology

The cost of purchasing computer equipment and installing an effective network can be enormous. These days, there are a number of cloud services available which not only provide you with a fixed monthly cost for computing services but eliminate the need for you to have such expertise in-house.

Administrative Costs

While administrative costs are not really outsourced per se, you can definitely avoid the full brunt of expenses such as office rent, security, phone systems, utilities, and office equipment, by sharing a location with another business. When you pool your resources with another company, you can save a great deal of money on administrative costs, and this money can be reinvested back into the business.

Human Resources

The cost of hiring, providing benefits, and ensuring compliance with Human Resources can be enormous for a company. In response to that, a number of businesses have arisen in recent years which are known as Professional Employee Organizations, and these companies are adept at managing and executing most of the Human Resource functions any business would need to carry out. Given the extraordinary expense of HR functions, it just makes great sense to outsource this burdensome department to a qualified company.

Is your company thinking of outsourcing? 

Sometimes all that’s needed to get started with outsourcing is some capital to get the process off the ground. Contact us at Simplicity Capital Finance if your business is in this situation, and we’ll be glad to discuss some options for funding your outsourcing initiative.