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10 Reasons to Outsource Your Business

10 Reasons to Outsource Your Business

Outsourcing by sending some of your company’s work to a third party is an increasingly common way of doing business in the 21st century. It was first developed in the late 1980s as a way companies could gain a competitive edge in the newly global market, and is now used widely across a number of fields. Here are just some of the reasons you should consider outsourcing for your business.

1. Labor costs

One of the main reasons businesses began outsourcing is because it is an effective way to decrease labor costs. This is because, rather than employing a number of full-time staff who are on the payroll even when their services may not be required, outsourcing provides you with a flexible workforce who can work only when needed. What’s more, the cost of labor in some countries is significantly lower than it is in the U.S., which means that even if you are a small company or only outsourcing a small portion of your work, you could still see an extreme reduction in labor costs.

2. Infrastructure and material costs

In additional to decreasing labor costs, outsourcing also allows businesses to cut down on other expenses, such as materials and shipping costs. The cost of materials you use may be decreased by moving some functions overseas, where those materials may be obtainable for significantly cheaper. You may also save on shipping costs if the materials you need for the outsourced functions are available in their new location. You will also save on infrastructure costs, as these will become your outsourcing partner’s responsibility.

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3. Efficiency

Outsourcing also leads to increased efficiency, because you are entrusting non-central company functions to experts elsewhere. Since these vendors are specialists in their area, they are intimately familiar with its ins and outs in a way that members your employees couldn’t be without extensive investment and training. This way, the functions you’ve outsourced can be completed both effectively and efficiently by highly-trained experts in the field who are able to implement their skills and knowledge immediately.

For example, by outsourcing your accounting department, you are taking the burden of mastering complicated accounting duties away from your own offices. This allows you to focus more on your core business functions. Meanwhile, your accounting work will be completed quickly and smoothly by your outside experts of choice.

4. Core business functions

When you keep all of your businesses functions housed together, things get busy and complicated, and your core functions can get overwhelmed by outside issues. These back-end operations end up requiring significant funds and attention, which detracting from what should be your more central concerns. If you outsource those back-end pieces of your company though, it allows you to focus all of your attention and resources on more essential parts of the business. Comfortable in the knowledge that experts elsewhere are dealing with the other functions required to keep your business running, you can put more of your energy toward research, development, and other ways of improving your business’s products and services.

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5. Customer satisfaction

The increased efficiency and ability to focus on your core business functions that come with outsourcing will also have a large, positive impact on the satisfaction of your customers. You’ll be able to produce your products and services faster, which is always a hit. You don’t need to have a separate department at your place, most of the work, even accounting, can be outsourced, thanks to the internet. Plus, with non-core tasks in the hands of experts elsewhere, you’ll be able to focus more on your central functions, thereby improving the quality of products and services you offer. What’s more, by breaking your company down into specialized units, you increase your ability to respond quickly to changes or issues, so any customer complaints or problems can be handled more smoothly.

6. Risk management and continuity

Risk management is central to any business, especially during times of change, such as mergers, downsizing, or management changes. Outsourcing certain departments can help in these transitional times because it lets those areas of your company’s work remain unchanged. Plus, your outsourcing partner will absorb any of the risks associated with the departments it now oversees. This can also help your company maintain an appearance of continuity, as products or services coming from the outsourcing partner will stay the same, too.

7. Globalization

Sending part of your business overseas also enables you to plant your company more firmly within today’s increasingly global markets. These days, many American companies site their international sales as making up a third or more of their total sales. Depending on where your outsourced functions are located, you may also gain a time zone advantage from this new arrangement by having offices that are in sync with different world business schedules, allowing you to operate close to 24 hours a day!

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8. Flexibility

Adapting to changes in the market requires the flexibility to make changes to your company’s size and costs in response to a changing market. You need to be able to react in time to cut the necessary costs during downturns or to ramp back up when the market bounces back.  This is very difficult for companies with large, centralized infrastructures. Outsourcing can help solve this problem because it lets you have short term and flexible contracts with your outsourcing partners. Then your company can cut down or ramp up on staff, production, etc. right away in response to changes in the market.

9. Resources

Having some of your businesses functions outsourced also gives your company accessed to new resources and frees up resources that would otherwise be devoted to those back-end functions. With the outsourced aspects of your business now being taken care of by experts in the field, you’ll no longer have to use resources on recruitment, training, or salaries for those competencies. Plus, by creating a connection in a new, possibly overseas location, you may open your business up to more cost-effective resource streams.

10. Innovation

By outsourcing non-core functions of your company, you allow your business to focus its attention and energy on more central aspects of your work. Part of what your newfound time and energy can go into is developing new ideas. After all, the shift to an outsourcing model automatically opens your company up to some changes in structure, which is a great way to spur more foundational types of innovation.

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Meanwhile, the functions now being carried out by a third party outsourcer could also be home to innovation, because the staff in question will be highly trained specialists in the area at hand, they may also be able to innovate in ways that benefit your company.

Final thoughts

If you’ve looked at these numerous advantages to outsourcing and realized what a good option it might be for your business, it’s now time for you to make a plan of action. Decide which departments would be best outsourced to a third party and start looking around for experts who fit the bill. It may seem daunting at first, but it will do wonders for your bottom line.

Featured photo credit: pexels.com via pexels.com

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Last Updated on November 5, 2019

How to Use Visual Learning to Work More Effectively

How to Use Visual Learning to Work More Effectively

Knowledge is essential to become successful in life, your career and your business. Without learning new concepts and becoming proficient in our craft, we cannot excel in our chosen careers or archive knowledge to pass down to the next generation.

But content comes in various forms, and because how we learn influences how much we know, we need to talk about learning styles. This article will focus on how to utilize visual learning to boost your career or business.

The Importance of Knowing Your Learning Style

Knowing your learning style enables you to process new information to the best of your ability. Not only does it reduce your learning curve, you’re able to communicate these same concepts to others effectively.

But it all starts when you’re able to first identify the best way you learn.

As a college student, I soon figured out that taking online courses without visual aids or having an instructor in front of me led to poor retention of concepts.

Sure, I got good grades and performed excellently in my online exams. However. I discovered that I couldn’t maintain this performance level because I forgot 80 percent of the course content by the end of the semester.

There are several types of learning styles known to mankind. To give an idea of how visual learning stacks up against other learning styles, here’s a brief mention of some of the different types of learning styles we have.

The four most popular types of learning styles are:

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  • Visual learning style (what this article talks about).
  • Aural or auditory learning style (learning by listening to information presented).
  • Verbal or linguistic learning style (learning that involves speech and writing).
  • Tactile learning style (learning by touching and doing)

But for the purposes of this article, we will be focusing on using visual learning to boost your career or business.

How to Know If You’re a Visual Learner?

When it comes to boosting your career, business (or education), a visual learner is one who would most definitely choose shapes, images, symbols, or reading over auditory messages.

I’m talking about preferring to read an actual map when navigating to a new place over listening to verbal directions. I’m talking about discovering that you actually have trouble remembering what your manager said at the meeting because there were no graphs or illustrations to support the points raised.

Most people who struggle with learning probably aren’t leveraging their best learning styles. The earlier you identify how your learning style can boost your success, the less struggle you will encounter with processing new information throughout your career.

However, visual learning in particular CAN 10x your career or business whether it is your preferred learning style or not. And here’s why:

Several studies have arrived at the conclusion that the brain retains more information with the help of visual aids. In other words, images are directly processed by our long-term memory which helps us store information for longer periods of time.[1]

While some lessons can be performed orally, several concepts can only make sense if you have an image with an explanation of sequences (i.e learning about the human DNA).

Visual learning does use a different part of the brain and visual cues are processed by the part of the brain known as the occipital lobe.

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By engaging more parts of the brain during learning, you’re able to have a fuller understanding of concepts and facilitate better interaction with your immediate environment.

How to Use Visual Learning for Success

Here’re 4 ways to use visual learning to boost your career or business:

1. Bring back the to-do list. Then add shapes and colors to boost productivity.

We live in an age where computers have taken over virtually every aspect of productivity and most human functions. But written lists are making a comeback, and with an endless number of important tasks to complete, having a to-do list of tasks in order of importance can improve your productivity.

While coming up with a list is initially challenging, adding colors and shapes to written lists that you personally write and manage gives you an extra layer of assurance and boosts aids recall so that you actually get stuff done.

I have tried this technique in my work as a registered nurse and discovered that adding shapes and colors to to-do lists helps me delegate tasks, recognize where more work is needed, and makes it easy to cross off completed tasks at the end of the day.

2. Add graphs, charts and symbols to your reports.

Yes, it seems like more work cut out for you. However, graphs enable you monitor the heartbeat of your business.

Graphs and charts help you trend your finances, budget, and pretty much any data overtime. With the help of free and premium software available on the market, it has become easier to take plain data and in a matter of seconds, have relevant information displayed in different shapes and images.

As an entrepreneur, you can make predictions and allocate funds wisely when you’re able to see whether your efforts are rewarded. You can use colors and charts to delegate actions to members of your team and track performance at the same time.

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And when broken down into monthly, quarterly, bi-annual or annual goals, graphs and charts communicate what ordinary text cannot.

3. Effectively brainstorm with mind-mapping.

Mind-mapping is not new but I don’t think it’s been talked about as often as we do to-do lists.

With mind mapping, you’re organizing information accurately and drawing relationships between concepts and pieces from a whole.

Think of a mind map as a tree with several branches. For example, the tree can symbolize healthcare while each branch stands for nursing, medicine, laboratory science, and so on. When you look at nursing, you can further branch out into types of nursing; pediatric, women’s health, critical care, and so on.

It’s an interesting relationship; the more ideas you’re able to come up with for your chosen subject, the deeper you get and the stronger the association.

Mind maps really show you relationships between subjects and topics, and simplifies processes that might seem complicated at first glance. In a way, it is like a graphical representation of facts presented in a simple, visual format.

Mind mapping isn’t only limited to career professionals; business owners can benefit from mind mapping by organizing their online learning activities and breaking down complex tasks into simple actions so that you can accurately measure productivity.

4. Add video streaming to meetings.

What if you could double the productivity of your team members by video streaming your meetings or adding flash animation to your presentation at the same time?

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When you offer video as an alternative method of processing information to colleagues, there is a greater chance of retaining information because we recreate these stories into images in our minds.

For organizations that hold virtual meetings, it can also be an effective way to enhance performance during if people can see their colleagues in addition to flash animation or whatever form of video is provided during the meeting.

Is Visual Learning Better Than Other Learning Styles?

No, that is not the point. The goal here is to supplement your existing dominant learning style with visual learning so that you can experience a significant boost in how you process and use everyday information.

You might discover that understanding scientific concepts are much easier after incorporating visual learning or that you’re able to understand your organization’s value when projected on a visual screen with charts and graphs.

The overall goal is to always be learning and to continue to leverage visual learning style in your career and business.

More About Learning Styles

Featured photo credit: Unsplash via unsplash.com

Reference

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