It can be tempting to maintain control of all the processes your company relies on. When you manage operations internally, you can be sure that everything is done according to company protocol. More importantly, you can maintain high standards for quality control and brand consistency. These benefits often come at a cost, though, and outsourcing certain aspects of your operations — including these eight examples — can be an effective way to save your company money.
1. Payroll
If you’re looking for costs you can reduce — and processes you can outsource — payroll should be one of the first places you look. Indeed, your company’s accounting department may be efficient, but it’s likely nowhere near as efficient as a payroll management company could be. Outsourcing this task can free up your business’s staff and minimize much of the liability that can come from payroll processing.
2. Human Resources
In addition to outsourcing payroll, you can likely save money by outsourcing certain aspects of your company’s human resources needs, too. In fact, many companies offer bundled payroll and human resources services to companies so that you can outsource both of these tasks to a single provider. This streamlines your operations and also allows you to massively cut back on labor costs. A private employer organization — also known as a PEO — can provide these services for a fraction of the cost that it likely costs to perform the tasks internally.
3. Pharmacy Benefits Management
Most employers are required to carry insurance to cover worker’s compensation claims. In addition to this expense, your company may be tasked with managing the pharmacy benefits associated with claims. This can be incredibly costly for large companies to manage internally, but outsourcing to the top PBMs offers a solution. A PBM company can take over this task and ensure that claimants get the pharmacy services that they need. More importantly, a PBM helps to streamline the workers’ compensation process and provides clinical expertise.
4. Customer Service
Customer service is yet another area of your business operations that you can likely save money by outsourcing. If you have dedicated, in-house customer service representatives, you can outsource these roles — or better yet, automate them. Investing in automation is likely the most cost-effective option of all, and it allows you to minimize the expenses of human labor while ensuring that customers still receive great service.
5. Marketing
Keeping your marketing campaigns in-house can have many advantages. It allows you to retain control of the creative vision and ensure that it aligns with your company’s brand identity. Outsourcing this task can be advantageous, though, as it allows your company to cut back on costs. An outside marketing consultant may also be able to bring fresh ideas to your brand and reinvigorate your marketing efforts.
6. Information Technology
According to Forbes, spending on outsourced IT services is expected to reach $519 billion. Despite the magnitude of this figure, outsourced IT can still offer enormous savings to companies because it minimizes cyber threats and strengthens tech resources. If you are considering outsourcing your company’s IT services, look for a provider that can tailor their service to your company’s needs.
7. Shipping and Logistics
Companies that are in the commerce sector can benefit from outsourcing their shipping and logistics processes to another company. A provider that specializes in providing shipping for other companies can find ways to minimize costs, improve shipping times, and generally improve logistical processes. In addition to saving your company money, this can improve customer satisfaction rates, too, as customers will likely receive their products faster.
8. Manufacturing
You can take outsourcing one step further and enlist help for your manufacturing processes, too. Outsourcing manufacturing has many benefits, including lower labor expenses, less overhead to worry about, scalability for fluctuations in business, and optimized efficiency. You can take advantage of all of these benefits by partnering with a manufacturing specialist that offers services to companies like yours. Some sources say that this can save businesses anywhere from 15 to 20% in reduced expenses.
Outsourcing might not be your first thought when you’re looking for ways to minimize your company’s expenses, but it’s certainly an effective option. These eight areas can offer substantial savings if you enlist help from an outside provider.
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