Hiring consulting firms or agencies, or outsourcing, for your needs as a business, can save you tremendous costs while getting you even better results.
Certain firms or agencies focus on a function of business, like accounting, media production, marketing, facility management, etc.
Rather than hiring staff to take care of these functions for you in-house, you can sometimes hire firms or agencies, which hire other people to do these tasks for you, at reduced costs; much lower than the cost of paying salaries, yet for even better results.
Better Performance, Less Wages
How do such firms do a better job for you at less cost? Since they perform the same functions for you and for other companies, it allows them to specialize and be more efficient.
Say for example you need to hire an assistant to handle a task for you for C1,000 per month in salary. That employee, carrying out that single task for you, will probably idle most of the time, due to lesser demand or omptimisation for their skill within your company as you only need them to handle that task every now and then, combined with other menial tasks probably.
An agency on the other hand could charge 4 or more companies C500 each per month to perform the same tasks for them, and from the C2000 or more that they earn from their client companies, they can pay their own employee higher, say C1500, to perform the same task for those 4 companies. The employee at the agency, now earning higher, also performs better not only due to the higher salary but also because they gain more experience and versatility by performing the same task for multiple companies and thus become able to solve more problems and guarantee better outcomes. They also work faster and more efficiently since they repeat the same tasks over and over again.
This makes it a win-win for everyone!
- Your company pays less, yet gets better results in return
- The agency’s employee gets higher pay, enjoys optimal performance and develops professionally
- The agency itself earns as well
…and a lower wage bill and better performance are not even the only benefits to outsourcing.
Less Hiring Costs
Hiring is a costly activity in and of itself; it costs valuable time and money to create and advertise vacancies, scan through numerous applications and meticulously select the best candidates, and train and orient them to work for your company; only to repeat the process again if and whenever the candidate or employee disappoints you. Outsourcing some of your functions saves you all that trouble; hiring becomes as simple as patronizing a product our service, you already know how good a service provider is or not, and you can subscribe or change providers quickly and easily.
Less Operations Costs
Outsourcing, in addition to saving you on hiring costs and wages, also saves you on operations; you don’t need to incur extra office expenses like office space, desk and supplies, electricity and other utility expenses. All these put together make the total cost of savings through outsourcing so much higher!
Extra Consultants’ Savings
Consultants, whom we sometimes outsource from, save us even more costs from inexperience or lack of expertise in a field. For example a tax consultant can save you from paying more taxes than you need to, and a public relations (PR), marketing or advertising agency can save you more costs by advising you on better alternatives and preventing you from wasting money on strategies that do not actually work for your business. The costs consultants help you save can sometimes make the amounts you pay them in turn look much smaller, tiny in comparison, thus making them worthy investments.
With outsourcing you also only pay for what you need, when you need it, rather than committing to a compulsory monthly remuneration as in the case of an employment contract. With outsourcing you do not need to worry about complex human resource management obligations as you can simply subscribe and unsubscribe to a service whenever it is useful and convenient.
Outsourcing is definitely a go-to strategy for small and big businesses alike that want to save costs while improving the quality of their output overall.