It is a common thing for established companies in the FinTech industry to outsource their work. By the reason of, they have experienced the numerous benefits of outsourcing work to professional companies that render the service.
According to the survey conducted by Deloitte, more than 44% of FinTech companies outsourced their processes in 2016, and 36% of them were going to proceed with outsourcing.
In fact, business subcontracting is an aspect that FinTech startups must learn from these established companies.
Outsourcing excess work to companies such as WOW24-7 is beneficial to a FinTech company because it will improve their effectiveness in serving the needs of their customers. A business organization exists for purposes of providing satisfactory services to their customers and meeting their needs. It is only upon meeting the needs of customers that a FinTech company will manage to make profits.
Nevertheless, FinTech startup companies are always reluctant to outsource their technology work. This is a practice that is hurting the new FinTech companies. When you look at such a situation economically, it is unacceptable. This is because it is expensive to build in-house technologies from scratch. However, when you outsource your technology, you will save the operational costs your new Fintech Company will incur, and you will manage to complete your excess work faster and more efficient.
Well, here are some reasons that should motivate you to outsource your tech work:
Too Much Work But Limited Time
When you are faced with too much work, don’t you think it’s time to outsource some of them? Having too much work is a desirable outcome. It is an indication that your business is growing, and your strategies are working out. However, it can also become a curse. It is a curse if your FinTech Company is not able to get the work done.
If you do experience such a scenario, you will lose the trust of your customers. It is better for your company to outsource some of your work, or to employ other people to help you. You will save time, and be more efficient in the services that your company renders to its customers.
Cost, enabling core business functions, and solving capacity issues are primary drivers to outsource. Leading practice organizations use outsourcing to drive transformational change and improve business results.
47% of companies believe that outsourcing solves capacity issues.
When you outsource your FinTech work to the right service provider, your organization will increase its efficiency in developing and using technologies. Companies that allow you to outsource your work to them have the resources, skill and the capability of transforming your ideas into the product that you want. They have some of the most experienced tech developers, who can develop tech products from scratch, or improve your already developed technologies. Moreover, you are not limited to outsource only technology products.
Some FinTech companies are known for outsourcing customer support services. Obviously, the way you interact with your customers determines how loyal they will be to your company, and whether they will be satisfied with the services offered. Outsource your customer support services to professional companies, for quality and efficient services.
57% of companies believe that outsourcing enables focus on the core business. 17% believe that it manages business environments.
Well, engaging in the business activity is all about seeking to make profits. This is one of the main motivations of starting a FinTech company.
Thus, without cost savings, you cannot make a profit. When you outsource your work, there are a number of operational costs you will save. This includes training, hiring, payroll costs, etc. These costs will definitely increase the operational expenses of a company, and this result in decreased revenues. Therefore, the solution to cost reduction is to outsource some of your work. In fact, when you outsource your work, you will have the benefit of accessing some of the best technology developers, at affordable prices.
59% of companies believe that outsourcing is cost cutting tool.
Financial technology companies must be agile to survive in their industry. Agility is the ability of a company to respond quickly to various changes in the demands of demands of their industry. To achieve efficiency in this area, FinTech companies have to outsource their work.
21% use outsourcing to speed up an ability to integrate new organizations.
In times of high labor turnover, FinTech companies that have outsourced some of their work are safe. Note that, during times of high labor turnover, FinTech companies normally experience uncertainty and inconsistency. Well, when a Fintech company outsources its excess work, it is protected from the uncertainties that are caused by a high labor turnover. It is, therefore, one of the best risk management policies an organization can initiate.
Whether to outsource your work or not, depends on the amount of work your business has. Nonetheless, Fintech companies will definitely benefit, if they decide to hire other organizations to help with their excess work. In fact, it is advisable to outsource some of the non-essential work a FinTech company has, so that it may concentrate on its core activity or domain of operation.
So, if you are in FinTech, do not hesitate and outsource your processes to the company with 12+ years of experience in customer support, virtual assistance, data entry services – WOW24-7.