Outsource non-core functions to save money? Learn how to identify & prioritize tasks for outsourcing.

Outsourcing non-core functions refers to the practice of delegating tasks that are not central to a business’s operations to third-party service providers.

This can include functions such as accounting, IT support, customer service, and marketing.

Outsourcing can be an effective cost-cutting strategy, allowing businesses to focus on their core competencies while reducing overhead costs.

Why is outsourcing non-core functions important?

Outsourcing non-core functions can benefit businesses in several ways:

Cost savings: Outsourcing can help businesses reduce overhead costs, such as salaries, benefits, and office space.
Improved efficiency: Outsourcing can allow businesses to focus on their core competencies, improving efficiency and productivity.
Access to expertise: Outsourcing can provide businesses with access to specialized expertise that may not be available in-house.
Flexibility: Outsourcing can provide businesses with flexibility in terms of staffing and resources, allowing them to scale up or down as needed.

How to implement outsourcing non-core functions

Implementing outsourcing non-core functions involves several key steps:

Identify non-core functions: Determine which functions are not central to your business operations and could be outsourced.
Assess outsourcing options: Research and evaluate potential outsourcing providers, considering factors such as cost, expertise, and reputation.
Select a provider: Choose an outsourcing provider that best meets your business needs and budget.
Establish roles and responsibilities: Clearly define the roles and responsibilities of both your business and the outsourcing provider.
Set expectations: Establish clear expectations for timelines, deliverables, and communication.
Monitor performance: Regularly monitor the performance of the outsourcing provider to ensure they are meeting expectations and delivering quality work.

Best practices for success

To ensure successful outsourcing non-core functions, consider the following best practices:

Choose a provider with a proven track record of success.
Establish clear communication channels and expectations from the outset.
Regularly monitor performance and provide feedback to the outsourcing provider.
Ensure that the outsourcing provider has the necessary expertise and resources to deliver quality work.
Consider outsourcing to multiple providers to reduce risk and increase flexibility.
Be prepared to invest time and resources in managing the outsourcing relationship.

Examples of successful outsourcing non-core functions

Here are two examples of small businesses that have successfully implemented outsourcing non-core functions:

Example 1: A small e-commerce business

A small e-commerce business outsourced its customer service function to a third-party provider.

This allowed the business to focus on its core competencies of product development and marketing while providing customers with high-quality support.

The outsourcing provider was able to provide 24/7 support and handle a high volume of inquiries, resulting in improved customer satisfaction and increased sales.

Example 2: A small law firm

A small law firm outsourced its accounting function to a third-party provider.

This allowed the firm to reduce overhead costs and focus on its core competencies of legal services.

The outsourcing provider was able to provide specialized expertise in accounting and financial management, resulting in improved financial reporting and increased profitability.