Whilst we await the rollout of the COVID-19 vaccine, many business owners and CEOs are undoubtedly evaluating the future of both their business and their industry as a whole. The pandemic has had some success stories, be they are few and far between. Whilst industrial warehousing and online retailers may have experienced a positive impact; the overall effect on the western economy has been a negative one. With many businesses currently holding out for the pandemic to come to an end, tourism, bricks & mortar retail and commercial real estate may take years to recover.

With vaccines effectiveness ranging from 70% to 95% and many businesses saving money using a remote working model, our working week will likely never look the same again.

What is Outsourcing?

Outsourcing is the process of obtaining goods or services from persons outside of your business. For example, you may want a graphic designer to help with your website and social media posts. You can look for a designer in the local area or worldwide on a freelancer website.

Outsourcing has been gaining popularity rapidly in recent years. Even before the pandemic, websites such as PeoplePerHour.com and UpWork.com have made outsourcing a streamlined process, helping it gain popularity, especially with small and medium-sized businesses. 

What are the Advantages of Outsourcing?

Outsourcing can be a great alternative to hiring full-time employees. With outsourcing, you do not have to interview lots of candidates. You can hire people from all around the world, and you do not have to purchase additional hardware or software, including office furniture and computers. It can also be a lot more cost-effective to hire a freelancer, as they often work from home and do not have a large payroll like a local agency might have. You can also take advantage of geo-arbitrage by hiring someone overseas in another economy. For example, you may work in New York and hire someone in the Philippines. Hiring a designer in the Philippines will typically cost around $15-40 per hour, compared to $50-$100 per hour for a US-based freelancer.

Another significant advantage of outsourcing is that you will not have to deal with much paperwork and administrative tasks. With no permanent contracts, you can pay per project – which can help you scale your business whilst mitigating financial risks. If you use a third party website, you do not need to worry about drawing up a contract, and you certainly don’t need to give a freelancer the usual employee perks such as a pension and healthcare.

Remote Working & Outsourcing

With remote working, combined with outsourcing, you can work in a highly efficient manner, especially when it comes to overheads. If you run a small business from home, then you won’t have to worry about office rent each month and as mentioned above, using freelancers can mitigate financial risk and reduce expenses significantly. 

Some additional perks regarding remote working and expenses, include the fact that you do not have to buy specific clothes to suit an office environment, and the coffee and food at home is usually less expensive! However, one of the most significant advantages of remote working is that you do not have to commute to and from an office each day. Remote work can result in considerable savings in terms of time, money and wellbeing.

If you have the infrastructure in place for remote work, you too can take advantage of job opportunities worldwide. You may also be able to undercut competitors in terms of how much you charge per hour or project.

Nomadic Remote Working

You can take your remote working business to the next level and take advantage of geo-arbitrage in a more direct way, by living and working overseas. For example, many digital nomads choose to live in a beautiful country such as Thailand, where the cost of living is relatively low. This allows them to work for a reduced rate and still enjoy a great way of life thanks to the favourable exchange rates if paid in US dollars or pounds sterling.

Other remote workers choose to stay in their home country but work from motor home or campervan. Mobile-offices like campervans, mean these nomadic workers can enjoy a new environment every time they choose and live a more dynamic and exciting lifestyle at the same time.

Remote Working Cons

Like most things in life, you should evaluate both the pros and the cons before investing in any hardware or software related to remote work.

Managing teams can be tricky with remote working. If you have several full-time employees working for you remotely, they often feel that they are not valued as much as a typical ‘in-office’ employee might be. Remote workers can feel somewhat devalued and not connected with the rest of the team. For this reason, it can be essential to have face to face conversations using video conferencing software such as Teams.

From a business owner’s point of view, it can be more difficult to track an employee’s productivity in they are working remotely. This is where project management software and regular but short conversations on live chat software can be helpful. Having good communications and systems that allow you to check-in with each can help.

Distractions can also be an issue. Whether it is an annoying phone call on your landline or delivery at the door, it can be easy to get distracted at home. Some noise-proof headphones and energetic instrumental music may be the answer if this is an issue. A Pomodoro timer can also help immensely, by splitting your working day into 25-minute sprints.

Technology & Remote Working

The pandemic has accelerated the rate at which the general population has taken to online grocery shopping and the number of businesses adopting a remote-working model. However, the technology allowing a more global and ‘online way of life’ has been available for quite some time.

Technology can certainly make a home office more comfortable and productive. Whilst technology allows you to have everything from a smart radiator, to a Bluetooth keyboard, there are also apps available for all devices to make a remote working business enhance productivity.

For example, QuickBooks is a great app for small business owners looking to quickly take care of their accounts, record receipts, or even send all their financial records to an outsourced accountant based overseas. The Moneypenny phone answering app is also an excellent app for small business owners, giving them all the benefits of a full-time receptionist, for a fraction of the cost. Telephone answering apps can also help improve productivity by reducing the number of unwanted interruptions.