5 BUSINESS ACTIVITIES THAT CAN BE OUTSOURCED

Outsourcing refers to appointing a company or a group of individuals from outside your business to perform tasks. The tasks assigned are often a speciality in which the contracting company excels. Outsourcing helps businesses to focus on their key competencies. 

5 BUSINESS ACTIVITIES THAT CAN BE OUTSOURCED

Here are 5 business activities that can be outsourced.

• Manufacturing

Manufacturing is an activity that almost every business tries to outsource. Outsourcing manufacturing processes to the company in a different city or country is beneficial, where cheap labour, raw materials, and talent are abundant. Outsourcing manufacturing tasks helps in cost control on a large scale and allows the company to perform its marketing and sales functions accurately and with the utmost concentration. 

• Customer Service

We often receive calls from different brands, banks, and insurance companies regarding new schemes, products, offers, and discounts. What do you think it is, the company officials calling to make a deal? No! The representatives who outsource the work generate leads for the company's sales representatives, who are further converted into customers by the company. Outsourcing customer service activities helps businesses create sales leads, handle grievances, and manage core activities easily. 

• Human Resource Management 

Human resource management is the most outsourced business activity nowadays. Big businesses avoided the cost of creating and maintaining a recruitment team and outsourced the job to recruitment agencies. Any vacancy is reported to the agency, and they perform the remaining part of the business to appoint a potential employee. This saves time, cost, and effort when hiring a new employee. 

• Tax Preparation and Filing 

Tax preparations and filing are a duty every business has to perform to avoid legal crises. Many tax firms handle the tax accounts for various companies. Businesses prefer outsourcing the tax filing work to avoid requiring a full-time employee to perform the tasks once or twice a year. 

• Event Organization 

Businesses nowadays are engaged in earning profits and performing corporate social responsibility. Social responsibility drives businesses to impact society by organizing events and programs. The business often lacks the skills to organize such events and outsource such work to event management firms. Event management firms ensure the success of such events for a valid amount of money. 

Outsourcing helps the business to focus on its key activities and get the less important work done from outside. It helps reduce costs and increase efficiency.