I offer lessons acquired from entrepreneurs with a mission.
It is thought that hiring a full-time worker will cost three to four times as much as the annual salary of each job.
After making a hire, you must give enough remuneration (especially in a tight labour market where talent is at a premium).
This includes wages, benefits, and incentives, which quickly add up.
The possibility that excessive recruiting would strain the budget is very real, particularly for startups and organisations experiencing rapid development.
Outsourcing is one method a growing company might use to avoid the error of rapidly increasing its personnel.
Along with employment, though, you should not just outsource anything to anyone.
In 2023, the following outsourcing trends might help a healthy organisation maintain its growth trajectory.
Outsourcing Financial Management
Always at the forefront of innovation is finance.
Fintech has been streamlining business operations for years.
Even in the context of outsourcing, using a third-party accountant is not novel.
Things will likely alter in 2023 due to the advent of outsourced financial management.
A rising number of outsourcing organisations are assuming the responsibility of making high-level financial decisions for others.
Outsourced CFOs, such as the group at Aquifer (who regard themselves as “Financial Jedis” with “professional financial experience”), offer plug-and-play finance departments that are particularly designed for startups.From the late seed stage to the series A stage, these services help keep track of spending and keep things open.
Delegating finances has always been challenging.
In 2023, outsourced CFOs will give failing companies with a long-overdue lifeline.
Outsourcing Marketing Administration
The chief marketing officer is another C-suite position that is increasingly being outsourced.
In this instance, the prevalent option is a fractional CMO.
They are marketing professionals with extensive expertise who contract with businesses.
Often, this is for a few hours over the course of a month.
Neal Schaffer is a fractional CMO and a prime illustration of the position’s value to both clients and service providers.
Several businesses are aided in their marketing efforts by the outsourced executive for a fraction of the cost of a full-time CMO.
Schaffer adds that the short contracts associated with fractional CMOs make them even more cost-effective, as they do not necessitate extended firm tenures.
For startups and SMBs (small and medium-sized organisations) who lack the means to engage a full-time CMO, fractional CMOs are a perfect middle ground.They offer a small amount of good advice that can help a small business through its growth stages.
The expansion of business process outsourcing continues
The past two instances illustrate the influence of outsourcing on the executive suite.
In reality, however, the majority of outsourcing occurs deeper down the organisational hierarchy, and this tendency is projected to increase in 2023.
In 2022, according to a survey by Grand View Research, the worldwide BPO (business process outsourcing) industry was valued at $261,9 billion.
BPO is an umbrella phrase referring to the outsourcing of a wide range of company tasks, operations, and responsibilities to external service providers.
Upwork and Power Publish are excellent instances of this type of outsourcing in action.
They provide a staff of freelancers and SMEs (subject matter experts) that may relieve a smaller marketing team of content generation responsibilities.
The BPO sector is always gaining new entrants due to its affordability and adaptability.
This is why Grand View forecasts the industry’s CAGR to be a whopping 9.4% over the next several years, corresponding to a market size of $525,2 billion by 2030.
From the advent of outsourced CFOs and fractional CMOs to the exponential expansion of the BPO sector, there is little doubt that outsourcing business tasks to third parties will continue to get attention in 2023.
As the number and quality of outsourced duties increase, it will be fascinating to observe how they pave the way for the future interaction of an ever-shrinking, interdependent global economy.