In the aftermath of the Great Recession, business almost immediately found themselves desperately scrambling to pull back the reins on spending.
Costs had to shrink almost overnight. And when the traditional means of cutting back (layoffs, salary cuts and benefits slashing) sent remaining staff hunting for greener pastures, businesses were left trying to pick up the pieces and keep their businesses running without skipping a beat.
The problem is of course that a lot of businesses did skip a beat. Businesses skipped many beats during the Great Recession. Sadly, some never caught up.
But, oftentimes those that did resorted to a an industry becoming more and more prominent in the mainstream market place; outsourcing.
Outsourcing, aka as Business Process Outsourcing (BPO) is often times a universal option for businesses feeling the pinch of a strained economy.
Some businesses benefit specifically from outsourcing IT Services. Others find outsourcing human resources is the best option for their business. But many corporations find that outsourcing administrative responsibilities offers a more universal solution from which a diverse slate of businesses and industries benefit.
Administrative functions in any business must be handled competently, efficiently and in a timely manner. Administrative functions are similar to the spring in a fine time piece. Nothing works well when it doesn’t. Administrative personnel must be highly trained, meet deadlines efficiently and perform their functions in a timely manner.When there is inconsistency in any stalwart administrative process, all functions dependent upon that process fail.
Management must be able to rely on their administrative team to handle the trees, so that they themselves can focus on the forest.
Sales, marketing, billing, human resources, all of these functions rely on stability in the administrative processes.
During the Great Recovery, when stability returned to the marketplace, corporations who had found themselves retreating to an outsourced administrative option years earlier, realized that returning to an In-House administrative personnel solution was not the best option anymore.
The reason? Corporations did the math and realized that dissolving their outsourced employees meant adding on expenses that were absent on the balance sheet for several years.
The hiring of new staff would often times lead to shifting revenue from business development to training the new staff. The associated expenses of the new hires such as salary, employee benefits and taxes hurt that business’ bottom line during a delicate rebuilding period.
Proper work environment would have had to be created….office space, office equipment, software, hardware and the corresponding IT support are expense categories the business did not have to deal with while utilizing an outsourcing solution.
There was also the issue that businesses might be paying for 8 hours’ worth of work for what might not always be eight hours work.
All of the above adds a level of operational risk and expenses which are obviated by outsourcing.
The truth is these are all issues every business should be examining in even the best of times. After all, streamlining costs and eliminating wasteful spending allows a company to shift resources to important functions that can drive revenue growth.
Marketing and advertising, business development, product development and growth, can often be choked if a company’s resources are drained by the failure to streamline operations.
Outsourcing administrative functions today could be the business decision that paves the way for the growth tomorrow. Just consider how many businesses rely on full time administrative staff that performs efficiently only 75% of the time.
What if those administrative function were to be outsourced to highly trained virtual assistants who:
- maintain their own facilities, software, supplies and equipment;
- manage the work they produce on an as-needed basis, ensuring that their client businesses pay for only the hours they work; and
- bring no ancillary costs like employee benefits to the table.
- All of the above at rates well below the rates you currently pay
The savings in costs versus maintaining those functions in-house could be used to further enhance revenue generating departments.
Corporations who manage their own administrative functions could shift their attention to implement new growth strategies. It would enable them to expand their service areas and/or product lines, and introduce a broader range of revenue producing options.
Business strategies companies pursue during challenging times should be the same strategy considerations a business deploys during the good times.
This way a company is ready for a leaner market environment and able to maintain margins during tough times.
It is never to early to use external resources, it can only be to late.
Outsourcing administrative responsibilities to highly qualified and well trained virtual assistants is a time-tested way of streamlining your business costs, streamlining in-house functions and preserving revenue for vital functions that make business grow in any economic client.