Outsource non-core business functions to control costs

Technology has made it possible for task just as payroll, network management and marketing to be performed by internal staff. The challenge is that these are not core functions for many businesses. Because of that, they are often not done so then and they consume time from management that could be better spent on more strategic areas of the business. Organizations often don't calculate the true cost of hiring and managing staff that perform these functions, and they have real difficulty in understanding the lost possibility costs attributable to being diverted from a tighter focus on core business functions and processes.

The current state of the economy is forcing businesses to refocus, so it is not surprising that one of the trends we are seeing is an increase in the outsourcing of non-core business functions. The same research developments that made it possible to bring these tasks in-house nevertheless make it possible for outsourcing firms to deliver better results more cost effectively.

» Payroll, HR and benefits management: This is a no-brainer for most small businesses. Maintaining an internal payroll system and managing HR compliance is challenging because of constantly changing legal issues, software updates and support requirements. Local payroll, HR and employee outsourcing services, as so then as national providers, have reduced costs, added functionality and made interfacing to their systems easier. The firms not only process payroll data, they as well provide HR services.

» Outsource innovation: The tools and techniques used to manage computer networks and provide helpdesk support to users have advanced tremendously. Today, organizations can leverage the capability of an outsourced team of IT engineers and support staff less expensively than hiring internal resources. Additionally, outsourced IT services, data protection, and Cloud Computing are more scalable, resilient and reliable, during providing solutions earlier only available to enterprise size organizations.

Key strategy for controlling business costs

Outsourcing non-core business functions can be a key strategy for controlling business costs. With these functions in accordance with control, your organization can spend more time, effort and focus on what it does best.