It’s Not All About The Money: Here’s Why You Should Really Outsource Back-office Tasks

Lots of information has been published on the benefits that outsourcing bestows on small businesses but none really gets skin deep into the exact savings that you can make through outsourcing.

If we strip it down to bare basics, outsourcing has the following primary benefits for small businesses:

  • Helps you to focus on your core revenue generating business activities.
  • Helps you cut down the cost of hiring, payroll, managing, and maintaining in-house capabilities and infrastructure for your non-core activities.
  • Enables you to get a range of skill sets which is hard to find in one single person. Hiring multiple experts could be an expensive affair while outsourcing gives access to a wider range of people.
  • Eliminates the repeated training when an old employee is replaced by a new one.
  • Unless there is a long term contract with the vendor, outsourcing gives the flexibility to change the service agreement based on business needs.
  • You get special advice from outsourcing partner on improving business processes since the outsourcing partner has a lot of experience in offering similar services.

It is true, that if you have in-house resources you can communicate with them more easily and have greater control over them. In-house employees sometimes can help on tasks that require physical presence, but if the outsourcing advantages make more sense for your small business then it could be a more viable option and save you a lot of money.

Basic cost savings:

If you hire a full-time in-house administrative assistant, apart from the hiring expenses, your total fixed cost may run up to an average of $3000 per month including base salary, all taxes, benefits, office infrastructure, and equipment. Actual work time or productive time of an employee is around 100 hours per month. That makes the real rate to $30 per hour.

By using right-shore outsourcing approach, you will not only lower your hourly rate by 30 to 40% but you will also have the flexibility of increasing or reducing your usage time based on business needs and get to use a wider range of skill sets.

Summary of benefits over time:

For most companies, outsourcing has a clear edge over employing a regular staff for back-office jobs. As this list is not exhaustive you can add to them related issues or activities which you may consider important and evaluate its comparative implications. As these intangible overheads play a vital role in the overall performance of your company, these aspects need your immediate and strong attention.

Reports suggest that on an average, small businesses save around 40% of their costs by outsourcing their back-office tasks to virtual assistants. So it’s time to get your calculators out and start evaluating, you might be in for some surprises.

About the Author

Dave Otfinoski, CEO of My Business Assistant or “MBA”, has more than twenty-five years of executive, hands-on experience with small and mid-sized businesses. As CEO of MBA, Dave manages a team of experienced virtual assistants who have extensive expertise in the realms of small business operations, bookkeeping services, website design, SEO, content creation and call center operations. Outstanding client service and quality performance are the hallmarks of both My Business Assistant and the MBA team. We look forward to providing you with the Virtual Assistance that you may require to enhance your own business strategies. Please feel free to contact us at or call us at 800.993.9622 with any questions or inquiries that you may have.