Advantages of Outsourcing Business Support Services

Advantages of Outsourcing Business Support Services


As companies evaluate their operations and how outsourcing can become a key element of a Growth Strategy, the advantages of using the ‘Outsourcing’ Model must be considered. With regards to using an Outsourced Bid & Tender Support solution the advantages listed below can be realised.

If selected for the right reasons outsourcing will help a company grow whilst cutting costs, but these are not the only advantages and here we have explored some of the others which companies should take into consideration:

  1. Maintain focus on your Core Business/Activities
    In rapid growth periods, the back-office operations of a company will expand also. This expansion may start to consume resources (human and financial) at the expense of the core activities that have made your company successful. Outsourcing those activities will allow refocusing on those business activities 'the day job' that are important without sacrificing quality or service in the back-office. When a business grows so does the need for an increase in support functions, if this is not handled correctly then focus is lost which will affect growth, lowering your business stability, opportunities, professional image and profits.
  2. Cost and Efficiency Savings
    Back-office functions that are complicated in nature, such as Tendering for work, but the size of your company is preventing you from performing it at a consistent and reasonable cost, is another advantage of outsourcing.
  3. Reduced Overheads
    Overhead costs of performing particular back-office functions are extremely high. Consider outsourcing those functions which can be moved easily which would suit a ‘turn on and off’ set up that outsourcing offers. Outsourcing reduces the need for permanent staff which minimises overall costs in office space, training, equipment, recruiting and maintaining permanent staff therefore lowering your outgoings.
  4. Operational Control
    Operations whose costs are running out of control must be considered for outsourcing. Departments that may have evolved over time into uncontrolled and poorly managed areas are prime motivators for outsourcing. In addition, an outsourcing company can bring better management skills to your company than what would otherwise be available.
  5. Staffing Flexibility
    Outsourcing will allow operations that have cyclical demands to bring in additional resources when you need them and release them when you're done. This is a common trend in the Tendering and Procurement arena. When a business is growing or has peaks and fluctuations at certain times of year will be able to use outsourcing to give flexibility and ease in increasing and reducing staffing levels when they are needed which will lower the overall costs.
  6. Continuity & Risk Management
    Periods of high employee turnover will add uncertainty and inconsistency to the operations. Outsourcing will provided a level of continuity to the company while reducing the risk that a substandard level of operation would bring to the company. Outsourcing can also allow your business to function at a continuous level at times of change, should that be due to existing staff changes or the demands of your business.
  7. Develop Internal Staff
    A large Bid, Tender or Project needs to be undertaken that requires skills that your staff do not possess. By outsourcing, your people can work alongside the external consultants to acquire new skill sets. Should you require the use of outsourced staff to work alongside your existing work force then this an effective way to improve the knowledge of permanent employees, reducing the need for training and time lost.
  8. Specialised Functions
    Some support functions can be complicated so if your company is small you may not have staff who can complete certain procedures. The benefits of outsourcing are saving money on training existing staff and also lowering the need to increase working hours of staff or size of workforce.
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