Story image

Outsourcing your office

01 Jan 2011

Outsourcing can make your business more productive and more profitable – if you know how to take advantage of it.
When we think of outsourcing, call centres in far-flung places like the Philippines typically spring to mind. However, increasing numbers of New Zealand businesses are taking advantage of local ‘Kiwi’ outsourced business service providers and cutting costs as a result. Yes – outsourcing can save you money, but that’s not the only reason to do it.
1. Benefits you could achieve by outsourcing:

  • Control capital costs. Outsourcing converts fixed costs into variable costs and releases capital for investment into revenue-producing activities elsewhere in your business.

  • Increase efficiency. Doing everything in-house creates higher administration, marketing and distribution expenses that you have to pass on to your customers. An outside provider’s economy of scale can give your business a competitive advantage.

  • Reduce labour costs. Having in-house staff for non-billable activities is expensive, and employees don’t always live up to your expectations. Outsourcing lets you focus your human resources where you need them most.

  • Start new projects quickly. You may need outside help to free up time to undertake new projects that don’t warrant another full-time employee. Outsourcing gives cost-effective access to resources and expertise that can grow with your business.

  • Focus on your core business. Every business has limited resources, and every owner or manager has limited time. Outsourcing can give your business back time to focus on what serves your customers, generates income and grows your business.

  • Level the playing field. Outsourcing helps SMEs look and feel "big” by giving them access to the resources, technology and expertise that large companies enjoy.

  • Reduce risk. Employing one person in-house for business processing is a bigger risk than outsourcing to a professional, credible company with a team of experts and separation of duties.

2. Knowing what to outsource:
You probably already outsource parts of your business without even thinking about it. Who does your marketing, graphic design, printing, website design, HR consulting, or manages your IT? Outsource the work you don’t need an on-site employee for:

  • Non-billable activities that aren’t central to generating profits or competitive success.

  • Routine jobs that waste valuable time and energy.

  • Tasks that recur in cycles.

  • Jobs that are less expensive to have someone else do rather than doing them in-house.

  • Activities that can be done in-house, but drain resources that could be better used elsewhere.

  • Jobs requiring specialised skills that don’t warrant employing a full or part time person.

  • Activities that people don’t enjoy doing.

Outsourcing is a viable option for everything from payroll, accounting and bookkeeping, office administration and paperwork, phone answering, manufacturing and delivery to customer service, employee recruitment and training, property management and computer services.
3. How much money could you save by outsourcing?
The average savings from outsourcing internationally are up to 40%, with small to mid-sized businesses making even bigger savings. We’ve surveyed many New Zealand business owners and asked them: how much does it cost to sit one full time staff member down in your office per year? They’re horrified that it actually costs $60,000 to $95,000 per year!
4. Choosing an outsourcing partner.
The most important aspects to consider are reputation, experience, size and communication. Do they have a team of highly trained, articulate and well educated employees? How will your data be protected and backed up? Choose a company that has a record of delivering services that are cost-effective and confidential.
5. Focus on the value, not the cost.
Many business owners think they can save money by doing it themselves. Outsourcing costs money – but so do time and mistakes. Less time spent, quicker turnaround and higher-quality results are worth spending money on.
Outsourcing may well prove to be the least expensive and most efficient option for your business – check it out. 

50 million tonnes of e-waste: IT faces sustainability challenges
“Through This is IT, we want to help people better understand the problem of today’s linear “take, make, dispose” thinking around IT products and its effects like e-waste, pollution and climate change."
Vocus & Vodafone unbundle NZ's fibre network
“Unbundling fibre will provide retail service providers with a flexible future-proofed platform regardless of what tomorrow brings."
IDC: A/NZ second highest APAC IoT spenders per capita
New IDC forecast expects the Internet of Things spending in Asia/Pacific excluding Japan to reach US$381.8 Billion by 2022.
Xero launches new data capture product in NZ
“Data automation is the fastest growing app category on the Xero app marketplace so we know there is a hunger for these types of tools."
Security flaw in Xiaomi electric scooters could have deadly consequences
An attacker could target a rider, and then cause the scooter to suddenly brake or accelerate.
Four ways the technology landscape will change in 2019
Until now, organisations have only spoken about innovative technologies somewhat theoretically. This has left people without a solid understanding of how they will ultimately manifest in our work and personal lives.
IDC: Top 10 trends for NZ’s digital transformation
The CDO title is declining, 40% of us will be working with bots, the Net Promoter Score will be key to success, and more.
Kiwi partner named in HubSpot’s global top five
Hype & Dexter is an Auckland-based agency that specialises in providing organisations with marketing automation solutions.