How Staff Outsourcing Can Slash Your Operational Costs: A UK Perspective
Starting a business is no small feat. Your business may not compete with the likes of Jeff Bezos or Mark Cuban, but it’s noteworthy how you’ve grown the business for a longer time than the average in your industry. If you’ve been open for five years or more, then you’ve probably had to cut costs and innovate. In this article, we explore the leading solution for reducing costs for businesses, and that is staff outsourcing.
According to a report by the National Outsourcing Association, UK businesses can save up to 60% on operational costs through effective staff outsourcing strategies. This method offers a myriad of benefits that can profoundly impact your bottom line.
The Rise of Staff Outsourcing
Staff outsourcing is not a new concept, but its practice has gained tremendous popularity over the last couple of years. According to a recent report by Deloitte, about 52% of the surveyed companies are already using staff outsourcing services in order to enhance bottom-line savings and efficiency, with access to specialised skills and other benefits. That means your business can benefit from this ever-growing trend with its advanced technological infrastructure and competitive environment that outperforms global competition.
Cutting Operational Costs: The Core Benefit
One of the most compelling reasons that will make you consider turning toward staff outsourcing is the considerable reduction in operational expenses. Conventional business models tend to bear heavy overheads, such as office space, utilities, payroll, and employee benefits, among others. Through offshoring non-core activities, you may reinvest those funds into more strategic initiatives. For example, staff outsourcing your administrative functions such as payroll, human resources, and customer support to specialised companies can save you between 30-50%. These savings are in the form of reduced labour costs, as staff outsourcing providers work in regions with lower wage rates, and increased efficiency because of the provider’s specialised knowledge and technology.
Access to a Global Talent Pool
Staff outsourcing exposes you to a whole variety of talent worldwide, ensuring that you have access to highly qualified professionals who can provide services at a much lesser cost than that of in-house staff. More importantly, it becomes very beneficial for tasks that specifically require some specialised knowledge or technical expertise for which local hiring might be prohibitively expensive.
Real-life example: If you are a tech company based in the UK, you would probably want to outsource your software development to a team in India or Eastern Europe, where it is much cheaper to hire skilled developers. This saves money on one hand and reduces the time of a project since there will be many dedicated teams working around the clock.
Flexibility and Scalability
While adaptability is crucial for the volatile world in which businesses operate today, flexibility within your staffing will provide you with the ability to scale up or down based on demand. This is particularly beneficial for seasonal businesses or those experiencing fluctuating workloads.
For instance, if you are the manager of a retail company, you may outsource your customer service operation during peak seasons such as Christmas when there is the potential for increased customer queries and there would be no need for hiring and training temporary employees. This scalability assures a high service level without unnecessary costs during off-peak periods.
Focus on Core Competencies
Core competencies allow you to concentrate your resources and energies in those areas where you can create the greatest value. This strategic shift will enable you to innovate, improve products and services, and enhance experiences for clients, resulting in growth and profitability.
Real-world example: The outsourcing of IT support and back-office work to a law firm will allow lawyers to fully concentrate on providing the best legal services, free from technical hitches and paperwork. That would save time and allow for offering quality service to clients.
Making Competitive Advantage
In today’s highly competitive marketplace in the UK, businesses must continue looking for ways to maintain an edge. Staff outsourcing provides access to leading-edge cloud computing and AI technology and best practices without the high costs. Service providers will invest in the latest tools and technologies, so you can be sure to benefit from current and proven solutions. Furthermore, agility in adopting new processes and technologies with rapid deployment through staff outsourcing gives a strategic edge over slower competitors. This agility can make a difference between leading the market and lagging behind.
One powerful tool that can be used to reduce the cost of operation, provide access to a pool of talented human resources located anywhere in the world, and increase your competitive advantage is staff outsourcing. By strategically using staff outsourcing for non-core activities, you can spend more time focusing on your core competencies with increased work-life balance for your in-house staff and increased concentration on revenue-generating sections of your business.
As the world market changes, staff outsourcing will become one of your vital strategies to survive in an increasingly competitive environment. In an era where every penny counts, staff outsourcing is not merely a cost-saving strategy but a strategic business direction to maximise and bring out the potential. The future of business lies in your ability to adapt, innovate, and optimise – and staff outsourcing is the key to unlocking this potential.
Switch to staff outsourcing with the help of our experts at BPONinja, offering complete solutions tailor-made for your business. Get efficiency and lower costs using our staffing services. Speak to us at Tel: +44 330 321 0022, email [email protected], or visit BPONinja for details.