5 Indicators That You Must Begin Outsourcing
- Sheryl Jones
- January 17, 2018
- 2 Minute Read
You may be a long-time proponent of the traditional in-house development strategy. But it may be this very same in-house development strategy that is restricting the growth of your business. Outsourcing, on the other hand, is an extremely beneficial project management strategy – it is cost-effective, has high-profit returns, and allows for enhanced expertise. So, if you are still thinking ‘why outsource’, below is some statistics that show how outsourcing companies can help you grow.
In 2016, revenue from the outsourcing industry amounted to approximately $97.8 billion AUS. Additionally, 30% of IT companies that outsource believe that the strategy is responsible for reducing the cost of project development. Similarly, could your business leverage the benefits of outsourcing?
If the following scenarios seem all too familiar, outsourcing companies can be a viable solution for you and your business.
1. Are You Paying Dead Wages?
Is your business bearing the cost of retaining an employee during downtime, when there are no current projects that need attending to? By outsourcing as and when you have projects, you pay for expert skills in a cost-effective manner. This reduces your company’s overall outgoing costs and assists you in generating substantial profit returns per project.
2. Are You Lacking the In-House Expertise?
Are you lacking the required skills to complete a project in-house? One of the greatest benefits of Outsourcing is that it lets you access the required expertise at the right cost. Studies show that 36% of innovators and 37% of entrepreneurs use outsourcing to increase their business capabilities. Skype as we know it was once a disruptive app, once further development was outsourced to three Estonian developers, these issues were resolved, and Skype finally possessed the functionality we are familiar with today.
3. Are You Unimpressed by Your Profit Margins?
As a project manager, are you consistently comparing total investment in a project with a total return, and finding your profit margins are less than desirable? 27% of companies that outsource do so to avoid the costs of in-house development and to gain better returns instead.
4. Are You Losing Clients?
As competition in industry sectors increases, client retention becomes more crucial than ever. Can businesses lose clients due to lack of in-house expertise resulting in client dissatisfaction? Outsourcing companies, with their enhanced expertise, can help you avoid this situation altogether.
5. Are You Falling Behind on Deadlines?
Meeting project deadlines is a major challenge faced by many businesses. Statistically, less than a third of all the projects in the IT industry was completed on time in 2015. If lack of expertise, lack of resources and in-house development challenges are consistently putting your business behind schedule, it’s time to outsource.
If these scenarios ring true for you and your business, you should consider changing your strategies. Be it cost-cutting, searching for specific skill sets, or retaining clients, outsourcing can be an effective project management solution for your business.