Would you rather purchase a phone by investing in a phone from the manufacturer or trying to win one from a claw machine? Savvy investors would buy from the manufacturer because they know they’ll spend the least amount for the greatest return.
Businesses must make similar decisions daily to find the best ways to minimize expenses while maximizing profit. When you outsource your workforce, you’ll benefit from a high ROI, which fuels your sales growth and business expansion.
Learn how to outsource workforce tasks for a significant return on investment (ROI).
- Outsourcing can increase your marketing and sales ROI.
- You’ll spend less on employee and technology costs, allowing you to keep more profits.
- You can make more through increased productivity and a larger team supporting your business.
How to Measure the ROI of Outsourcing
Your workforce outsourcing ROI is the total returns minus the costs of outsourcing.
Two primary costs to consider are outsourcing service costs and your support costs. Even when you outsource, you’ll still be involved. For instance, you’ll have a contact person who communicates with the outsourcing team and an analytic team that analyzes the results.
After calculating your costs, you must gather a comprehensive picture of your return. An outsourcing team offers several types of returns, which you can measure using the following metrics:
- Total sales
- Total leads generated
- Money saved
- Customer satisfaction increases
- Time saved
5 Financial Benefits of Outsourcing
Why should you consider outsourcing workforce tasks?
1. Saves on Employee Costs
Employees’ costs go beyond their annual salary. It also involves benefits, recruiting costs, and unemployment insurance. The total cost of employees ranges between 1.25 and 1.4 times their base salary.
That means an employee with an annual salary of $60,000 costs between $75,000 and $84,000 annually.
Outsourcing your workforce reduces your cost per employee since it will eliminate the need for recruiting and benefit outlays. This reduces your overall expenses, meaning the company keeps a significant percentage of returns.
2. Reduces Tool and Technology Costs
Each of your workforce teams has unique software and equipment requirements to effectively perform their jobs. For example, if you have a call center team providing customer service, you’ll need computers, headsets, customer relationship management systems, and call center software. The cost of these tools and equipment can quickly add up and take away from your profits.
When you outsource, you save yourself those costs as the outsourcing team already has the technology and software to perform the required tasks. In addition, because the agency specializes in the services you hire them for, they’ll most likely have the most updated and high-quality software and tools, which may not fit your company’s budget.
3. Increases Workplace Productivity
When your employees have too many tasks on their plate, it cuts into their productivity. Outsourcing your workforce relieves some of that burden. As a result, they can focus more time and attention on specialized business tasks like nurturing leads or converting prospects, improving their overall productivity.
The outsourced workforce can take care of the time-consuming tasks like generating leads or answering customer inquiries.
4. Boosts Business Growth
You don’t need to limit yourself to your in-house capabilities when you outsource your workforce. This fuels further growth. You can scale your teams quickly as new opportunities arise and take advantage of any potential profits.
You can also expand into new areas and try new strategies you don’t have the in-house capabilities to run. This allows you to keep growing and increasing your overall returns without waiting months or years to build your in-house capabilities to support the growth.
5. Improves ROI Calculations
You may struggle tracking the ROI of tasks like content marketing, lead generation, and nurturing. This is because you have so many moving parts contributing toward the return. With outsourcing, you can easily track your expenditure and budget for the next few months since you pay a fixed cost rather than variable costs.
Fixed costs allow you to budget more efficiently for your tasks and predict the potential ROI more accurately.
How to Maximize the ROI of Workforce Outsourcing
Use these three tips to maximize your workforce outsourcing so you receive the maximum possible ROI from your investment.
Minimize Your Costs
To keep more of your financial returns, you must cut out any extra costs that might reduce your overall ROI. Evaluate processes and expenses so you only pay for what you’re using.
One cost to cut back is duplicate tasks. You shouldn’t need to perform the same functions as your outsourcing team. For example, if you’re rewriting all the marketing content you outsourced, you aren’t saving by outsourcing.
Clarify your Outsourcing Process
Your ROI depends on how well your outsourcing strategy runs. It should feel like a seamless extension of your team.
Build smooth communication channels, clarify roles, and set clear goals. As a result, each moving part knows its duties and works toward the same goals.
You’ll need to talk with the outsourcing team about what exactly their services include. Some agencies offer end-to-end solutions that include lead qualification and lead generation services.
However, others might only generate leads, leaving you to build your own lead qualification strategy. You’ll also need to know what data or services to have before the outsourcing team takes over so they have a foundation for success.
Set Clear Goals
Establish clear goals for what you expect as your return. You’ll need to calculate the return you need to offset your expenses plus your desired profit above that.
To ensure your outsourcing ROI meets expectations, establish benchmarks before outsourcing. What would you like the team to accomplish? What are the overarching goals? For example, establish a set number of leads you want to generate or a percentage increase in customer satisfaction through outsourced customer service.
Those clear goals will guide your strategies and help you prioritize your efforts. For instance, if you aim to attract more qualified leads, you may want to focus on building complete customer profiles and working with agencies with advanced targeting and qualification abilities.
Reach More ROI Goals through Outsourcing
Outsourcing is your key to sustainable and scalable growth. Televerde offers end-to-end customer lifecycle marketing services. With our marketing partners, you will see greater returns on your marketing and sales investments.
Contact us to start outsourcing your workforce.