Outsourcing for 2025: What You Need To Think About

Two focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Outsourcing is a key component of successful businesses and it’s something important to consider going into the next year. The following contributed post is entitled, Outsourcing for 2025: What You Need To Think About.

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Outsourcing is an age-old hack many businesses and enterprises of all sizes and shapes have accommodated in the past and will continue to do so in the future. Over 90% of companies have outsourced at least one aspect of their business, and the benefits can far outweigh the concerns over giving a third party access to parts of the company you have invested a considerable part of your life in building.

But is outsourcing still viable in 2024 and beyond? According to insiders and industry experts, the overwhelming answer is yes. Outsourcing can significantly relieve business owners of duties outside their wheelhouse, facilitating improvements, growth, accessibility, and efficiency moving into 2025.

The current global market value of the outsourcing sector is projected to reach a staggering $178.70 billion by 2029, with a promising CAGR of 4.08% from 2024 to 2029 (source: Statistica). These figures underscore the enduring relevance and immense value of outsourcing to entrepreneurs worldwide, dispelling any notion of it being an outdated partnership.

Now, we know more about the market and the viability and effectiveness of outsourcing. What exactly should you be outsourcing? With the world changing at an alarmingly fast rate and the business world evolving seemingly overnight, outsourcing in 2025 will look vastly different from outsourcing even five years ago, and this is thanks to technological advancements. To identify your business needs, consider conducting a thorough audit of your operations, identifying areas where you lack expertise or resources, and evaluating the potential benefits of outsourcing those tasks.

Outsourcing is not a one-size-fits-all operation. It’s a strategic decision that requires clarity and conciseness about the functions you need to be handled by other parties and the expected benefits from the partnership. However, it’s important to note that outsourcing also comes with potential risks, such as losing control over certain aspects of your business and the need to manage the relationship with the third-party provider. Don’t outsource just because others do it; do it to add value to your company and benefits to what you do.

This post, however, will examine some ideas that can help you identify where to look and where you might get the most benefit as your business enters a new calendar year.

IT Services

With increased demand and reliance on technology and IT as integral aspects of running a business, so too does the need for expert IT assistance in maintaining operations.

It can be costly to hire an internal IT team, invest in the right equipment, perform upgrades and maintenance as required, offer support, enforce cybersecurity, etc. This is why many businesses choose to outsource their IT requirements to local managed services.
This way, you can benefit from expertise and skills that can be difficult to source and/or train in-house and rely on an enterprise-level infrastructure to support your operations.

Add to this the ongoing support and assistance required per your package, and the many benefits of outsourcing IT over in-house teams suddenly become increasingly apparent.

As the world of technology evolves, cybercriminals become more sophisticated. (Did you know that small businesses account for 43% of all cyber-attacks globally and that the average cost of an SMB is $25,000?) Likewise, the importance of expert IT and cybersecurity increases.

Logistics/Supply Chain

Managing your supply chain processes and streamlining your logistics can be challenging, especially if you do not have the space or technology to make the necessary improvements in-house. From procuring stock to taking in deliveries, managing storage, picking, packing, and shipping, there is a lot involved in the logistics of supplying goods, and all it takes is for one part of the process to be ineffective before the whole chain collapses via the weakest link.

Working with 3PL (third-party logistics) companies means you can rely on their infrastructure, expertise, and technology to improve your shipping and logistics and even improve supply chain issues. They can handle, store, and monitor all of your inventory, making life easier for you.

Companies like J&J global fulfillment are designed for efficiency. Their sole focus is ensuring your products get to where they need to be when they need to be there. The right logistics partner can revolutionize your supply chain, make you confident that all orders are being shipped when required, and ensure you remain in control of operations without being swamped by navigating shipping and managing stock levels.

Recruiting

Excluding salary and benefits, the average cost of recruiting a new employee can range from $4,000 to $20,000. From taking the time to create the ad, read through applications, interview, check credentials, onboarding, training, uniform, and supplies to time lost for working due to devoting time to recruiting, there can be an immense cost to a business, meaning the onus in on you it gets it right and provide the new employee with everything they need to be successful and make the most of this investment before you even pay them their salary!

A third-party recruiter will, of course, come with fees; however, they can free up your time and resources to do what they do best. They can dip into their talent pool or whittle down suitable applicants, ensuring that only the most appropriate candidates are put forward.

Using a recruitment agency to source your new employees frees up your time and enables you to focus on getting them settled in without wasting too much money on unsuitable candidates.

Accounting and Bookkeeping

Poor cash flow is the number one reason small businesses fail, and even for those who think they are great at handling their finances, getting expert financial advice is advisable or helps. Chances are there are things you might overlook or not be aware of, and an expert accountant or bookkeeper can help you keep your finances clear and understandable so you know where you are and what you’re dealing with.

Plus, they can be on hand to assist you with tax filing queries, stay on top of changing regulations and requirements, pay bills on time, manage payroll, and more, ensuring you’re always compliant; they can also prove your financial health, help you avoid losing money, and address any issues before they become too big to overcome.

Even if you just use an accountant pre-tax season to ensure you’re on the right track, outsourcing your financial needs can provide a sense of security and peace of mind that is invaluable to business owners.

Marketing

Marketing can be a full-time job in and of itself, which means that your full attention might not be available to devote to intense marketing methods. On top of this, building an in-house marketing team can be costly. The expense of building and training a team, equipment, and a budget for marketing activities might spiral, meaning you’re not getting a great ROI on your investment from an in-house team.

Marketing agencies or consultants are expertly trained, own their own businesses, and have their fingers on the pulse of industry trends and requirements. They will typically have a proven track record of success, enabling you to rely on their knowledge and skills to create a marketing campaign that delivers what you need it to.

In many cases, marketing is multifaceted. Your marketing team will relieve the load from you and work on your behalf to bring your vision to life, enabling you to reap the rewards of your marketing now and in the future.

Customer Service

Struggling to answer calls or respond to inquiries from customers? You’re not alone, and as a small business, your time is valuable, and your resources are stretched. You can’t realistically do everything yourself. However, prioritizing customer service is something you cannot fail to implement. If you can’t guarantee that you will do this yourself, you need to look at outsourcing your customer service requirements to expert teams who can deliver the service on your behalf.

Services of this nature can assist you by promptly answering customer calls or responding to emails and direct messages on your behalf. They can also assist with managing customer relations and even providing technical support for customers.

If you find juggling the responsibilities of running a business overshadows your ability to devote time to customers, then looking into working with third parties to manage these aspects of the company for you can help you elevate your standards and work with you to scale and expand what you do when the time is right by ensuring the building blocks of success are in place.

There are so many aspects of a business you can choose to outsource. However, the key to effective outsourcing for 2025 and beyond is finding what you need as a business and investing in those areas. It might not be the most glamorous part of the business, but covering fundamental operations and maintaining standards is vital to helping you succeed. So look at what you need and where your investment will be best made, and then look at providers who can offer you this in a way that benefits what you do.

Author: anwaryusef

Anwar Y. Dunbar is a Regulatory Scientist. Being a naturally curious person, he is also a student of all things. He earned his Ph.D. in Pharmacology from the University of Michigan and his Bachelor’s Degree in General Biology from Johnson C. Smith University (JCSU). Prior to starting the Big Words Blog Site, Anwar published and contributed to numerous research articles in competitive scientific journals reporting on his research from graduate school and postdoctoral years. After falling in love with writing, he contributed to the now defunct Examiner.com, and the Edvocate where he regularly wrote about: Education-related stories/topics, Science, Technology, Engineering and Mathematics (STEM), Financial Literacy; as well as conducted interviews with notable individuals such as actor and author Hill Harper. Having many influences, one of his most notable heroes is author, intellectual and speaker, Malcolm Gladwell, author of books including Outliers and David and Goliath. Anwar has his hands in many, many activities. In addition to writing, Anwar actively mentors youth, works to spread awareness of STEM careers, serves on the Board of Directors of the Friends of the David M. Brown Arlington Planetarium, serves as Treasurer for the JCSU Washington, DC Alumni Chapter, and is active in the Dave Ramsey Financial Peace Ministry at the Alfred Street Baptist Church. He also tutors in the subjects of biology, chemistry and physics. Along with his multi-talented older brother Amahl Dunbar (designer of the Big Words logos, inventor and a plethora of other things), Anwar is a “Fanboy” and really enjoys Science-Fiction and Superhero movies including but not restricted to Captain America Civil War, Batman vs. Superman: Dawn of Justice, and Prometheus. He is a proud native of Buffalo, NY.

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