In the competitive landscape of business, the beginning of the year often marks a surge in recruitment activities.  

In this article, we explore the key highlights from our recent podcast episode about an alternative to recruitment – outsourcing various business functions.

Cost Efficiency

For small-medium sized businesses (SMBs), the financial constraints of maintaining a full-time staff can be daunting. In these can be there can be significant cost efficiencies that come with outsourcing. By delegating tasks such as Finance, IT, HR, and Marketing, businesses can access professional expertise without the hefty price tag associated with in-house hires. 

Outsourcing not only covers the salary but also additional costs like superannuation, benefits, and employee training. This strategic move allows businesses to allocate resources wisely, focusing on growth and development rather than more overhead. 

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Expertise on Demand

It is important to acknowledging one’s strengths as a business owner. Despite excelling in specific areas, being an expert in every aspect is impractical. The idea behind outsourcing is to leverage specialised expertise for particular business functions. 

For example, at Amplify HR, we offer outsourced HR consulting services. This approach allows SMBs to access HR professionals with more than 15 years of experience without the financial strain of maintaining a full-time internal HR Manager. 

Focus on Core Competencies

Entrepreneurs and business leaders often find themselves juggling numerous responsibilities and functions within their organizations. Attempting to handle every aspect of a business can result in inefficiencies and hinder overall progress. It is important to  concentrate on defined goals and core competencies, promoting a strategic approach to outsourcing non-core functions. 

Consider a scenario where a business owner or leader excels in Sales. The business will benefit if that person focuses primarily on sales-related activities while delegating tasks such as finance or marketing to external experts. This strategic delegation ensures that energy and efforts are directed toward areas where the individual can make the most substantial impact on the business. 

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Risk Management and Compliance 

Navigating the intricate landscape of compliance and risk management can pose challenges for smaller businesses. Outsourcing critical functions such as accounting, bookkeeping, and HR emerges as a proactive strategy to mitigate these risks. External experts are staying updated on legislative changes, and so play a crucial role in ensuring businesses remain compliant and well-protected. By leveraging this external expertise, businesses can confidently navigate compliance complexities, allowing them to focus on core activities while maintaining a resilient and legally sound operational environment. 


As businesses grow, the need for various functions, such as technology, becomes inevitable. While these functions are essential, not every business owner is an IT specialist. Outsourcing allows businesses to utilize external expertise and scale operations effectively over time. 

Access to Knowledge and Systems

Staying abreast of the latest information and industry trends is vital for achieving business success. Outsourced partners can offer valuable insights.  

This partnership not only keeps businesses well-informed but also ensures they stay updated on the latest developments in their industry. 

Before you Outsource 

It is important before making the step to outsource, to also consider the challenges that may arise and how to overcome these. For example, there may be a perceived loss of control or concerns over cultural fit when outsourcing rather than hiring an employee.  

The key is to approach outsourcing as a partnership, focusing on communication, alignment of values, and strategic planning. With the right approach, outsourcing can be a powerful tool for businesses looking to scale and grow. 

Also consider your outsourcing tipping point –at which certain functions might be brought back in-house. Whether opting for a non-traditional model of outsourcing everything except core services or adopting a more conventional approach where you outsource until large enough to hire internally, having a well-defined strategy is essential for ensuring continual business growth. 

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