Does Outsourcing Enhance Efficiency and Productivity?

The Covid-19 pandemic and resulting labor shortage have yielded many unforeseen consequences. Other issues like inflationary pressure and supply chain disruptions are also contributors.

The net result is diminished productivity across the United States. From 2021 to 2022, productivity declined by 1.3%. This amounted to the largest registered decline since the mid-1970s.

These headwinds are leaving many businesses wondering how to improve productivity. One effective tactic is to outsource discrete work so that technical professionals can focus on their jobs.

Read on to learn whether outsourcing improves productivity and efficiency. Explore topics such as the benefits of outsourcing and other tips for improving workplace productivity.

How Outsourcing Works?

Before diving into productivity gains, it is important to understand how outsourcing works. Typically, a business manages its workload by assigning an employee to it.

This employee is on the company’s payroll. They earn an hourly wage or salary. Also, in-house employees receive benefits like health care, retirement, and paid time off (PTO).

Consider that this employee makes $30 per hour. This is only the direct portion of their compensation. Once the benefits are added in, the company’s cost incurred could be two or three times higher.

The business is also responsible for other non-monetary factors. They manage employee training, reviews, career advancement, and more.

With an outsourced option, all of these responsibilities are transferred to another company. Of course, you will pay a direct fee for the services provided. However, the company you are outsourcing to handles all the human resource aspects.

How Does Outsourcing Improve Productivity and Efficiency?

The reduction in costs is typically enough justification to make the switch. However, many companies are seeing their productivity and efficiency increase as well. How is this possible when the same amount of work is getting done?

For starters, your technical experts can focus on the job they are supposed to do. Distractions are common in the professional contractor industry.

Often, experienced professionals like plumbers and electricians are spending a part of their day on customer service. They are dispatching crews to work sites. Also, they are taking phone calls and scheduling appointments.

By outsourcing this tasking, the professional can focus on their job at hand. This means more time for repairs, inspections, and preventative maintenance. They can complete jobs faster without their phones ringing for unrelated items.

On the flip side, the customer service representative specializes in their job. With their skillset, they can land new customers and retain existing ones. They can get more jobs on the schedule and efficiently dispatch crews to get the work done.

Your Guide to Outsourcing and Its Benefits

Are you looking at business project deadlines and wondering how it is going to get done? Outsourcing is a great way to improve productivity and efficiency.

Establishing a budget for outsourcing is the first step to getting more work done. Your business will be on the path to reducing operating costs as well.

If you are interested in outsourcing tasks like quoting and live call management, contact us today to get started with Free2Grow.