Grow Or Die – Is It Worth Outsourcing Your Business Services?

In a rapidly changing world, businesses need to constantly seek out new opportunities to stay afloat. With long-term work in one business field, it is difficult not to lose your business flair and always have a fresh glance. And the constant recruitment of new employees can sink the ship from the inside, as any skilled specialists require a good salary. Where to get fresh brize? Contractors for small business services are one of the good options.

Nowadays, any successful business turns to external performers or consultants, this has long been the norm. Therefore, companies resort to the help of contractors for business services in solving both current and recurring issues.

Today, a combination of small business players who focus on the aspect of what they are the best allows for a much better product than one giant holding company creating a product from scratch. The best indicator, in this case, is a success. As a classic example, the cooperation of Microsoft software, Intel chips, and Oracle cloud storage can be considered, which actually took over their market by taking it away from the huge IBM.

Reasonable and flexible cooperation has been winning against the traditional monopoly since the era of globalization. According to Adrian Slavotsky, a business consultant who reached the top 5 in the United States, “Specialization has replaced monopoly. Even not a specialization itself, but a combination of specializations and a better understanding of all processes than giant businesses have”.

What are the pros of hiring a business assistant?

Even if you are a small entrepreneur who definitely can not compete with Amazon or Apple stores, then you can interact with them as a partner. And this is a good example of a win-win situation that should be pursued by anyone who wants to succeed.

The same principle applies when you are already considering contractors to provide you with external business services:

  • Engaging third-party businesses helps to save money and not inflate a huge staff with a separate position for each issue.
  • As a business CEO, you are interested in your company not pulling on whole costs and processes that a contractor or even a freelancer can do better, and possibly cheaper and faster.
  • Business process outsourcing does not claim to pay taxes by the company, social guarantees, medical insurance, and other benefits, and you can redirect the proceeds of the company to important research and new markets exploring.

What shouldn’t be given to contractors

At the same time, there are some fields of your business that need to be developed within the company, and pay as much attention to them as possible. These include:

  • Work with clients – whatever you do, your business is, first of all, your clients and the unique product that you provide them. If you give it to contractors, then you will immediately lose your uniqueness, and possibly will drop in quality, since contractors are not interested in providing the best for your clients.
  • High-risk areas – they require proven and honest relationships of partners, or if we are talking about an invited specialist, then he must be definitely a well-versed pro in the issue he is taking on.
  • Development and strategy of your further business model. Your hired assistants and contractor companies can most likely be the ones that also work with your competitors. Therefore, it is better than all corporative information, plans, and blueprints important for development remain within your office.

How business outsourcing works in Canada

Outsourcing, partnerships, and hiring contractors for businesses are governed by several national and local provincial laws in Canada. There are also several industries to which special laws apply. These include:

  • lending;
  • power industry;
  • healthcare;
  • telecommunications, and some others.

The most common form of outsourcing agreement is a general service agreement. In this form, as a rule, the parties agree on the main aspects of cooperation, such as terms, performance indicators, payment methods, and emergency situations.

In 2021, up to 80% of business processes will be outsourced, according to business research:

This is 1.5 times more than the same indicator in 2019. Although some meanings have changed since then: IT services have overtaken accounting. Outsourced legal services have secured a strong place in the top three. Call centers and customer support, on the contrary, have lost their relevance.

It does not matter for what purpose you hire a business outsourcing, the specialists who undertake to work with you must be very qualified and meet all your requirements. According to the Fee4Bee platform, almost all Canadian business services which were outsourced only found their reliable performer after 3-4 rehiring.

Interesting Related Article: “Outsourcing vs Offshoring: Which One is Better for Your Business?