Top 10 Reasons to Outsource Your Business in 2021

A lot of entrepreneurs have great talents, and most often, they can juggle multiple tasks at once. But as a business grows, trying to handle all the duties of the business can only stall its growth. By outsourcing the mundane day-to-day tasks, businesses have more time to focus on generating income.

Nonetheless, thanks to the advancement in digital technology, outsourcing has become easier today. Developed back in the late 1980s, outsourcing offers small businesses access to a resource of highly qualified professionals anywhere in the world.

Still on the fence about whether to outsource your business functions? Consider these reasons.

10 Reasons Why You Need to Outsource Your Business in 2021

Labor Costs

One of the top reasons for businesses to outsource is to decrease labor costs. Instead of employing several full-time employees, putting them on the payroll even when their services are not necessary, outsourcing gives you access to a flexible workforce whose services you only tap when needed.

In some countries, the cost of labor is significantly lower, making them hotbeds for outsourcing jobs. Even when you only outsource a small portion of duties, you will still see a significant lowering of labor costs.

Material and Infrastructure Costs

Apart from decreased labor costs, when your business outsources duties, it cut down on other expenses, including materials and shipping costs. If your business is into manufacturing and production, moving some function overseas could mean you have more access to significantly cheaper materials.

It also follows that you no longer have to worry about infrastructural costs since it shall be covered now by your overseas partner.


Another reason to outsource is efficiency. Entrusting your non-central functions to an expert allows you to focus more on the core of your business. Since these outsourcing companies or individuals have extensive training and experience, you are ensured that the duties will be handled properly.

For example, by opting for accounting services near your city, you are taking the burden of complicated tax and accounting duties from your company. You no longer have to train your staff or to put on payroll someone to handle accounting and other financial related matters solely.

Customer Satisfaction

The increased efficiency and focus on the core business function brought about by outsourcing would lead to customer satisfaction. Since you can produce your product or services faster, your customers will likely do repeat business with you and even recommend you to others.

And since your company can now focus on core functions, any customer queries, complaints, and issues can easily be resolved.

Core Business Function

Housing your business functions together might be okay when your business is still small. But with a growing company, everything will become complicated and busy, and your core functions will be overwhelmed by trivial matters. To be more efficient in handling the essential parts of your business, consider outsourcing.

Outsourcing non-core business matters also give you peace of mind that experts elsewhere are handling other functions as best as they could.

Risk Management


Risk management is crucial for any business. In times of change, like a merger, or downsizing, your employees are highly affected by this switch which would further affect their work performance. By outsourcing certain departments, you ensure a smooth transition as some areas of your company remains unchanged.


By outsourcing some of your business functions overseas, you allow your company to remain competitive in today’s increasingly global markets. This would help increase your market reach on an international scale. Furthermore, with the time zone advantage, your company stays in operation close to 24 hours a day.


It can be difficult for companies with large and centralized infrastructures to cut costs during downturns or to ramp up when the market becomes agreeable. With outsourcing, you can have short term and flexible contracts with vendors.

Now, you no longer have to worry about making sudden changes in response to the market.


Allowing some of your business functions to be outsourced like payroll and accounting means your company could gain access to new resources. With duties being taken care of by experts in the field, your company no longer has to spend money on recruitment, training, and salaries to gain those competencies.


Since outsourcing allows your business to focus more on its core functions, you have more time and energy to develop new ideas for your business. Corollary to that, outsourcing business functions means your company gets to enjoy the innovations by the third-party vendor.

With all these advantages of outsourcing laid out, now is the opportune time for your company to make an action plan and start outsourcing.

Share the news: