How Outsourcing Helps You Lower Operating Costs

Cybalink Solutions Outsourcing Recruitment



Are you spending too much to grow your business? Do you need more people but can’t afford to hire them? With outsourcing, you can grow your business while saving money. Are you still tied to the traditional ways when it comes to staffing? That is, requiring your people to report to the office every day and do their work there.  One of our clients may make you change your mind about outsourcing.

However, this role requires far more than its title of ‘data entry’. The perfect data entry professional will have an excellent combination of skills and attitude to get the job done. When it comes to hiring a data entry professional, there are four essential qualifications to look out for. This particular client runs an innovative company in San Francisco. After experiencing exponential growth, they ran into challenges. The company needed more people to work in high-end engineering services. 

Those in charge of the company approached Cybalink with a request to guide them through the process. And our proposal involved outsourcing those roles to qualified people outside the company.  After finding highly-qualified candidates, the solution worked out so well that the client wanted more. The client ended up bringing 30 new people on board between August and October 2018. In doing so, the company maintained its capacity to support its fast growth.

Outsourcing is not only about lowering operating costs. It brings with it other benefits, too. It helps businesses gain the leverage needed to go after more revenue and profit. After all, it saves them time in the hiring process and a lot of effort and money in operating costs. You can enjoy many of the same benefits for your company if you outsource judiciously. It can even be the best solution in many situations. With that in mind, let’s go over some of the benefits right now.

Benefit #1 – No Need to Develop Your Infrastructure Further

With outsourcing, you can grow your business without making infrastructural changes. It’s because that task falls on your outsourcing partner. You don’t need to create additional workspace either. Nor do you have to spend money on optimising the workflow in your company. All of that money saved is money that you can invest in something else. New technology, for one. You can invest it in marketing to bring in more clients, for another. Or if it makes sense to you, you can hold on to more capital for when times get tough.

Benefit #2 – Better Presence and Delivery Worldwide

If you run an international company, outsourcing could be especially terrific. Having people to represent you in different time zones can help you to deliver better services. For example, you can assign a project with a 12-hour turnaround and go to bed without worries. By the time you wake up, one of your off-site collaborators may already be in the processing of wrapping up the work. On top of saving money for the cheaper labour, this allows you to boost profit in other ways. As an example, you may be able to take on more projects – including those previously unsuitable for time zone constraints.

Benefit #3 – Lower Training and Recruitment Costs

Training and recruitment costs affect operating margins. In most situations, you have no choice but to spend money on new recruits. You may also have to hire an HR company to find the right candidates. After that, you may have to invest in on-the-job training – you have to then get new hires accustomed to your unique system and methodology after all. So, how does outsourcing help you in this regard? It allows you to hire people who already know what they have to do. As a result, you can outsource certain tasks that may be taking up too much of your employees’ precious time.  It also saves you money by not having to pay highly-skilled individuals to do time-consuming work. At the same time, you may also be able to acquire the services of experts in your field for less. The way you save money varies from one situation to another. But the point is that outsourcing promises to lower your operational costs in more ways than one.

Benefit #4 – Lower Capital Requirement

Another thing you may not realise is the significant salary discrepancy from one country to another. This is particularly so for countries in the developed vs. the developing bloc. For example, countries such as India or the Philippines have massive populations, many of whom are adequate to highly-skilled. It’s very easy to find people to outsource work to. At the same time, the rates in these developing countries are affordable in comparison. Not to mention that you won’t have to supply the office space – or the equipment. As it often happens, your remote staff have their own offices. Many of them are also working from home these days. This is a win-win situation for everyone involved. You can also take on much larger projects if you have the capital. The operating cost savings allow you to invest in smarter, more profitable opportunities. Your company may no longer have to worry about meeting client demands. And you can have more money to work with and invest in premium materials.

Benefits #5 – You Can Ease on the Arrangements

For most companies, full-time employees represent a large portion of operational costs. You have to pay competitive salaries and benefits. This doesn’t happen with part-time candidates. It also doesn’t happen as much with short-term contractual work. You can outsource work to a staffing agency that, in turn, handles the issues of business cycles for you. It’s a great way to get top returns for your dollars without having to pay extra for benefits, paid leaves, insurance, etc.

Benefit #6 – Save Money on Key Roles

All companies must keep up with accounting. If you want to avoid fines and legal issues, you need to stay on top of your finances. In many situations, this type of work comes at a hefty price. Even smaller companies may have to keep a couple of bookkeepers and accountants on the payroll. Either that or you hire an accountancy firm that charges by the hour. The difference can be massive if you send the work offshore. And you still enjoy the same perks – bookkeeping, monthly reports, etc. – only with lower costs.

Benefit #7 – Off-Site Administrative Support

All companies, including those in construction and engineering, deal with administrative tasks. And in some cases, this can take up a lot of time and money. Although necessary, this work might pull your focus away from your clients. It can create significant pain for you and your clients. Outsourcing administrative support allows you to focus on your most pressing issues. It allows you to be there for your clients, all while your business runs smoothly in the background. As mentioned, it can also save you money in operating costs due to the cheaper workforce. Furthermore, it doesn’t interfere with your allocated time to bring your services in front of new prospects.

Outsource the Work You Don’t Have to Do to Focus on the Work You Must Do

Many roles in your company don’t have to get filled locally. The world is teeming with resources and opportunities for you to get the job done faster and more affordably. Look at outsourcing as the way of the future. Big companies have long used it to grow and sustain fast growth, and now outsourcing is just as accessible to smaller companies. It’s a way to achieve more with less capital. And it’s also one of the best ways to ensure that you can maximise your exposure and delivery timing with your clients. With outsourcing, your company can provide round-the-clock services. That’s even if you are to clock off, perhaps as usual, in the afternoon and not lift a finger until the next day. While you do need to have on-site personnel to deliver certain services, there are many roles that you don’t have to fill with local talent. Perhaps you’re convinced but you’re not sure about the best ways to go about it? Cybalink can help, and we specialise in remote staffing solutions in engineering and construction. Use our Wage Calculator to figure out how to proceed.

Find the best deals on local hires and off-site outsourcing opportunities.


Get in touch today to book a confidential call with our co-founders Kim Lombardi and John Rodgers.



Cybalink Solutions E-Book Link

If you are considering outsourcing, start your outsourcing journey today with this e-book.

Click here to download!



Checkout our
Related post