The Advantages of Outsourcing- 9 Benefits

Written By: Deborah Gavello

Many businesses are traditionally big proponents of outsourcing.

Many functions that are commonly outsourced include: Web site development/hosting, janitorial services, security services, courier services, legal services, payroll services, plant service, window cleaning, social media services, catering and merchant card services.

The question one must ask oneself when evaluating new areas to outsource:

“Is This Function Mission Critical?”

If the answer is no: seek a competent and reputable firm to out-source.      Follow Deborah on YouTube

According to the Outsourcing Institute, many companies are Off-Loading non-strategic functions to external service providers.

Outsourcing is now being utilized extensively in; however, in order to better compete and increase revenues the number of non-mission critical functions that will be outsourced in the next five years will increase as much as 20 percent.

9 BENEFITS OF Outsourcing

1.) Allows the business to focus on its core competencies.

2.) Allows the business to re-allocate internal resources.

3.) Enables businesses to grow faster and to become more profitable.

4.) Gives businesses access to experienced professionals.

5.) Helps eliminate obsolete training ideas and techniques.

6.) Helps employees learn proven techniques that have been tried and tested at other companies

7.) Allows companies to save money, instead of reinventing the wheel.

8.) Eliminates stress for managers who dislike teaching.

9.) Gives companies access to instructors who are passionate about what they do, instead of an employee who is being told to conduct the training.

It is critical to concentrate on more competitive business opportunities.

By leveraging an outsourcing provider, a business is free to devote internal resources and capital funds to revenue generating activities.

The two areas that I have outsourcing experience in are payroll/human resources and sales and customer service training.

I worked in sales at Automatic Data Processing (ADP) for seven years, and I have been the principal at Gavello & Associates, a sales and customer service training firm, for the past 10 years. Both companies have similar concepts:

“Let the experts do what they do best, and you focus on what you do best.” Deborah Gavello

ADP has been the payroll expert for 50 years, cutting checks for more than 450,000 companies.

Who has the time or the knowledge to study the changing tax laws, as well as all the changes in computer software and hardware to support payroll? ADP can produce payroll checks for a fraction of what it costs a company to process payroll in house.

Similarly, who is going to be an expert in all the areas that sales and customer service encompass?

It is difficult to find one or several individuals with all the necessary knowledge and material to conduct in-house sales and service training.

By far, the Strongest Advantage of Outsourcing is that it allows employees to focus on strategic business initiatives:

1.)      How are we going to Grow the Business?

2.)     How can we be better Compete against X and Y companies?

3.)      How can we Increase Client Retention?

4.)      How can we Increase Fees?

* Selling new business and providing superior service, in order to increase client retention, are both Mission Critical.

* Customer contact areas are always Mission Critical.

Utilizing an in-house trainer to train staff in the areas of sales, customer service, social media, or PR is not; thus, these functions should be outsourced to an expert.

As you move forward in a more aggressive fashion with the intent to find areas to outsource, ask yourself several questions:

  • Can someone outside the company manage this area with more expertise?
  • Can someone consistently deliver the high quality we need?
  • Can we deploy our resources better somewhere else?
  • Lastly, is this a mission critical function?

Good luck and good selling.

Follow Deborah Gavello on Twitter or on  YouTube

Do not re-produce in any form without written permission from Deborah Gavello

© Copyright 2016 Gavello and Associates

Video Testimonials


    "Received good reviews of your presentation from my guys."

    Henry Kiang - President
    Metropolitan Bank, Oakland, CA