In the past, outsourcing was something only the largest businesses did. With how much technology has simplified the process, these days many companies are choosing to outsource at least part of their operations. These include small businesses and local companies. What are the benefits of outsourcing?

What Is Included?

In modern business, there’s a pretty flexible definition of outsourcing. Sometimes, you turn over a large part of your company’s operations to a third-party business, such as letting a digital marketing firm handle all online advertising for your company.

Other times, you outsource smaller tasks, such as yearly tax preparation. Hiring an IT consultant or other specialized professionals is a form of outsourcing because they’re independent contractors instead of company employees.

It’s common for many office buildings, stores and even manufacturers to outsource facility cleaning to janitorial businesses instead of taking care of cleaning tasks in-house. Some companies outsource their order fulfillment, customer service or accounts receivable departments.

Why Outsource?

There are many advantages to having an outside company or professional take care of certain tasks.


First, there’s the matter of expertise. When the job is complex, it may make more sense to contract with an independent company that focuses completely on that area of business. This is often the case with accounting or IT-related tasks. You can avoid mistakes and get better finished results when you have an expert handle things.


Another reason to outsource is to reduce your stress as a business owner. When parts of your business feature simple but time-consuming tasks, it may be better to outsource them to a team that can handle them in a cost-effective way. Why should you waste time on nonessentials if your time can be better spent elsewhere? By focusing on the big things, such as your relationship with clients and managing the direction of your business, you can generate far more profits than you spend outsourcing repetitive tasks.


Also, using this method makes your work capabilities scalable. Third-party businesses generally only have a portion of their workforce assigned to your project. If you experience a surge in demand, the company you outsource to often has no problem adapting to the increased workflow. That’s not something you would be able to do quickly with an in-house team.

Cost Savings

Finally, outsourcing can save you money. Sometimes, it costs you more to hire, train, employ, insure and manage several employees than it does to just outsource the job to a business that already has its team up and running.