Why Outsourcing Back-Office Services is a Top Strategy for 2021
It is without a doubt that 2020 has changed the way we work and work with our clients. With organizational shifts such as the switch to remote work and social distancing, the workforce is in need of a major change. How can businesses best use the limited resources and personnel in 2021? One way is outsourcing.
Outsourcing is the business practice of contracting with an outside party to take care of certain tasks instead of hiring new employees or assigning those tasks to existing staff. In order to support growth in your organization, you need to hand off work to those most capable in their field.
Ability for Leadership to Refocus
Now is the time to recenter on organizational priorities. According to The Balance Small Businesses, “Outsourcing important but mundane activities can allow you to refocus your in-house resources on the activities that make you profitable without sacrificing quality or service.” Having an expert contractor work on back office tasks allows leadership teams mental space to work on the company’s most important goals.
Large organizations, including educational institutions have been outsourcing and will likely continue in the future. According to The Washington Post, “Universities and colleges say outsourcing also saves them money and makes them more nimble and efficient.” Handing off back office services to professionals will save you both time and money to provide space for executives and leaders to focus on their mission.
Lower Costs
The pandemic has caused organizations across the globe to reconsider their budget and reevaluate their resources.
In the education industry, where organizations are constantly faced with budget cuts and increased demand for quality services, most organizations turn to outsourcing. Hiring an expert in the field — be it human resources or IT, where your organization may be lacking, can be incredibly beneficial in the long-term.
According to a report from the National Postsecondary Education Cooperative, “Outsourcing can result in lower costs and improved service for students because the company can achieve greater efficiencies than the institution.”
Efficiency and Flexibility
It is vital to have a flexible business model, especially in the “new normal”. Outsourcing functions that can help eliminate stress or workload for your key employees can help boost productivity and efficiency. What’s more, companies do not have to outsource entire departments, but can choose certain functions to outsource.This allows businesses to solve problems based on current needs, while saving costs and allowing room for flexibility.
For example, charter schools across the country can outsource a component of their human resources such as their recruitment and staffing without having to hand off entire control to an outside party. Recruitment has been a growing demand in outsourcing services, worldwide. According to Statistica, the worldwide spending in the recruitment process outsourcing industry has grown 3 billion dollars from 2020 to 2021, and is expected to grow 4 billion more in 2022.
It is likely this trend will continue given the efficiency, flexibility and lower cost of outsourcing.
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