Building a sustainable business model through outsourcing

Building a sustainable business model through outsourcing
Gary Culverhouse
Gary Culverhouse
    4 minute read

When businesses consider the option of outsourcing, the conversation typically turns to a familiar list of benefits. Various studies have found that 70% of companies cite ‘cost reduction’ as their primary motivation[1], almost a quarter of small businesses say they aim to increase efficiency[2] and 18% of organisations are keen to receive expert assistance[3].

In more recent times, there has also been an increasing desire to overcome recruitment challenges, with 75% of companies reporting difficulties finding qualified talent[4] and the global skills shortage is at a 16-year high[5]. Amid such pressures, it is little wonder so many businesses are attracted to a resourcing strategy that can cost up to 70% less than employing in-house staff while addressing a myriad of other concerns.

In the rush to address such challenges though, it is often forgotten that partnering with a quality outsourcing provider offers a range of ‘proactive’ benefits for businesses. This is particularly so for organisations focused on building sustainable business models. It is one thing to enjoy the sugar hit of short-term gains. It is another to lay a foundation for long-term growth and outsourcing is a key step towards achieving that goal.

What is outsourcing for sustainable growth?

Outsourcing for sustainable growth is a strategy that sees a business partner with an external provider or talent to support development without the need to commit additional funds. While debt is an accepted part of business life, funding rapid growth by accruing extensive debt can be a game-breaker for organisations. Sustainable growth focuses on achieving such gains without encountering financial heartache and outsourcing can play a significant role in supporting such efforts.

B_Benefits and drivers of outsourcingHow does outsourcing promote sustainable growth?

Outsourcing is not only a ready-made solution for businesses facing hardship. It also offers a range of benefits for organisations pursuing growth ambitions.

  • Reinvestment: outsourcing is a proven money saver, with the lower cost of living in many offshore destinations allowing businesses to reduce labour costs by up to 70%. Crucially, those savings are then able to be redirected to areas of an organisation that promote growth efforts. For example, recruiting additional in-house staff or providing existing staff with better resources is more sustainable when funded by the cost savings gained through outsourcing.
  • Continuity: setting out on a growth journey is an exciting time for any business but it is essential to not lose sight of what delivered success in the first place. Existing customers or clients should continue to receive the same level of care and not be forgotten amid the rush to employ new managers or introduce new products or services. In periods of transition when the focus of in-house teams may be elsewhere, outsourcing providers can tackle essential routine tasks with unwavering vigour and commitment.
  • Innovation: outsourcing may have once been largely associated with contact centres but today’s offshore recruit is just as likely to be a tertiary-educated creative who can bring untold insights to an organisation. Innovation is one of the keys to sustainable growth and knowledge-based outsourcing means businesses can tap into the expertise of highly qualified talents with a passion for tackling tasks in creative ways. Additionally, outsourcing routine and time-consuming jobs to offshore teams allows in-house staff to dedicate more time to innovation.
  • Specialist skills: a common theme among ambitious businesses that stumble is they tried to do it on their own for too long. Knowing when to look outside one’s four walls for specialist help is difficult enough, let alone when combined with the often exorbitant cost of doing so. Outsourcing allows businesses to utilise the specialised skills of offshore providers without the huge wage bill, along with bringing a more diverse set of voices into the growth conversation. Seeking offshore support for administrative tasks also ensures start-ups and entrepreneurs can focus on their own specialties without getting sidetracked by tasks outside their remit.
  • Expansion: there comes a time for any growing business when a couple of questions need to be asked – do we expand and how do we fund that expansion? Sadly, many organisations find their ambitions restrained by a lack of resources and face the dilemma of standing still or going into significant debt. Outsourcing eases this pressure by allowing businesses to assign specific work to offshore providers at cost-effective rates and focus their efforts and investment on areas of higher value. Responsible expansion is a key step on the path to sustainable growth.


If you need further proof of the challenge facing businesses with growth ambitions, consider the study that found about 20% of small businesses fail within their first year and only 30% remain standing after a decade[6]. They are not great odds by anyone’s standards but they are also no reason to avoid shooting for success. Rather, they are a reminder that sustainable growth is the key. Be strategic, avoid unmanageable debt and open your eyes to the potential of outsourcing to help set your business on a path to a sustainable future.

Building and maintaining a sustainable offshore venture involves careful planning, communication and execution. Learn more about how to outsource effectively.

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