Types of Outsourcing to Grow Your Business
In 2019, the global market size of outsourced services was valued at 92.5 billion U.S. dollars, increasing approximately seven billion U.S. dollars from the previous year. The largest share of global outsourcing revenue was generated in the Americas, at 62 billion U.S. dollars in 2019.
According to Statista, as of 2021, 59% of businesses use outsourcing services to cut costs.
Outsourcing enables productivity and business growth. Here are some types of Outsourcing to unlock business growth:
Business Process Outsourcing
Business Process Outsourcing, or BPO, refers to the process of contracting standard business functions to be handled by a party outside of the company.
This model allows you to tap into a huge talent pool with highly specialized skills and comprehensive experience.
57% of companies use business process outsourcing to concentrate on core issues, operations, and activities. (Statista)
Business Process Outsourcing is typically classified as front office or back-office outsourcing. Front Office outsourcing involves the direct assistance and interaction of customers at every point in the buyer journey which include Market Research, General Customer Support, Technical and Service Support, Telemarketing and Telesales. Its opposite, Back-Office outsourcing, essentially covers support tasks like data entry, Payment and Processing, Lead Generation, Appointment Setting, HR support services, accounting services, creative services, IT support and technology development.
The most popular functions to outsource are Finance, HR and IT, largely due to the transactional nature of their business processes.
Project Outsourcing
Project Outsourcing enables outsourced staff to handle defined projects for you. In this model, project terms, budget, specifications and timeline is agreed upon by the outsourced team and the business.
This model works best for companies with attainable and defined projects.
The entirety of the project, from management and deployment, is handled by the outsourced staff. Businesses are informed of process updates and quality control to ensure the project adheres to the client’s scope, resources and materials, budget, and timeline.
Professional Outsourcing
This option allows clients to outsource experienced professionals as required by the project.
Sample standard roles, typically licensed professionals, you can outsource are the following:
- Senior CPAs, CPAs, Staff Accountants, and Accounting Technologists
- Real Estate Title and Escrow Specialists
- Information Technology/Web Developers and Administrators
- Nurses and Healthcare Claims Processors
- HR Professionals
- and More
Manufacturing Outsourcing
Long before the evolution of Outsourcing to more specific business processes, businesses primarily outsourced manufacturing services to save on overhead costs and equipment used.
Manufacturing outsourcing, also called Contract Manufacturing, is a widely known type of business process outsourcing that has been around as early as the 19th century. In this model, a company outsources manufacturing operations to an external business process provider located either onshore or offshore.
Today, key players from different industries such as Apple, H&M, and Nike have been outsourcing manufacturing operations to a third-party provider, usually located offshore. Through this model, these companies have focused on core operations and have saved both time and money.
IT Outsourcing
The IT outsourcing market share is expected to increase by USD 97.51 billion from 2019 to 2024. The growth momentum of the market will accelerate at a CAGR of 5% during the forecast period.
According to Statista’s Technology Market Outlook (TMO), the IT outsourcing industry is divided into administration outsourcing, application outsourcing, web hosting, and other IT outsourcing. In total, these segments are forecast to account for a combined revenue of 351 billion U.S. dollars in 2021.
In this model, you can also outsource services to an experienced IT Support personnel with proper technical knowledge on Help desk assistance on technical to process queries and resolution for both clients and employees, software or product development and information security. Outsource software development to an experienced product development team equipped in timely technical support for troubleshooting, building and deploying a scalable and agile product.
Connext provides Excellent Outsourcing Solutions
Connext Global Solutions is a remote staffing provider that offers industry-leading staffing solutions that helps manage a client’s team as if it was theirs and makes sure the performance matches or exceeds that of your local teams.
Connext Global Solutions powers small to medium businesses by hiring, building, training, and managing offshore remote teams.
The company provides innovative solutions to companies looking to streamline operations, increase the bottomline, and unlock growth.
Connext provides world-class service to our clients standing by our 100% client satisfaction claim. This is backed up with over 350 quality, productivity, and utilization metrics per client, transparent and cost-effective pricing system and consultation sessions. There is a 60% reduction in the client’s average cost through outsourcing services via Connext.
Industries Connext Caters to:
1. Healthcare Providers
2. Distribution
3. Telecommunications
4. Title and Escrow
5. Property Management
6. Accounting
7. Banking
8. Technology
9. E-Commerce
10. Retail
11. Construction
12. Professional Employer Organization
13. Insurance
Partner with Connext and receive:
- Geographically diverse talent
- 100% virtual recruitment and employment process
- Productivity, utilization, and quality monitoring
- Dedicated account management
- Standing IT support
- Talent management and employee engagement
Work with Connext Global Solutions today.
