Springfield Business Journal_2019-07-29

SPRINGFIELD BUSINESS JOURNAL W ‌ hen it comes to outsourcing, cost is still a big reason, but according to Deloitte’s 2018 Global Outsourcing Survey, it is no longer at the top of the list. Initially, companies turned to contrac- tors to only do the work needed – generally back office opera- tions – without the burdens of an annual salary or benefits. While that reasoning still applies, especially for small businesses, today outsourcing is changing the way work is done in just about all sectors. Statista.com reports the global market size of outsourced services was $85.6 billion in 2018 alone. In the current tight labor market, companies are hiring free- lancers and outside companies to increase the expertise available. As Deloitte’s survey finds, that exper- tise can transform the way orga- nizations operate and make them more agile, efficient and effective. From information technology services to payroll to human resources, legal and marketing, Chelsey Bode, president at Pearson- Kelly Technology, sees local compa- nies in all industries outsourcing and finds it’s more segmented by size of business than industry. “Less than 10 users typically don’t have the budget or the pain points,” she says. “In a company of 10-50 users, we typically see them outsourcing 100% of their tech- nology needs. In our opinion and experience, best practice north of 50 users is to look for a hybrid program. “Outsourcing allows the existing team to be empowered as well as protected from team turn- over or limited budget to hire that next employee,” Bode adds. “Outsourcing also forces consis- tency and strategic planning and pulls organizations out of the unorganized day-to-day craze of just putting out fires.” In Springfield Business Journal’s 2019 Economic Growth Survey, more than 60% of business respon- dents expect their industry sector to improve in 2019, and more than half plan to add staff. Bode, who outsources some of the functions at Pearson-Kelly to HR Advantage, feels that outsourcing can better position companies to make the most of the current growth. “Having outside experts augmenting your internal team allows you to protect your business practices and also allows you to add layers of expertise. The outsourced experts have a vast array of knowl- edge working with a multitude of similar businesses that have similar problems and usually require a similar solution,” Bode says. “When outsourcing to these partners that have generally seen it all, you get to take advantage of that knowledge as opposed to trying to reinvent the wheel.” Outsourcing to Stay Agile SPONSORED CONTENT SBJ FILE Outsourcing is proving to be not only a cost-effective alternative to hiring, but also a way to increase expertise and improve an organization’s efficiency and flexibility. Outside experts augmenting your internal team allows you to protect your business practices and add layers of expertise. WORKFORCE / SKILLS 12