Top 10 Outsourced Services for US-Based Businesses

As a business owner, do you find yourself spending too much time on tasks that may be outside of your responsibilities? Do you feel like there should be more hours in a work day? Are seeking, but failing, to look for solutions to improve your company’s efficiency? Do you spend late nights at the office?

If you answered YES to any of those questions, then you may be facing issues that could be solved by outsourcing. In fact, the outsourcing industry is booming, with global spending exceeding $731 billion in 2023, according to Exploding Topics.

Business leaders like you who outsource several business functions see improvements in terms of more streamlined company operations, increased cost-savings, and better management focus on critical business processes.

Let’s face it. Hiring and onboarding new employees in-house is not always the answer. This is where the beauty of outsourced talent comes in. When you partner with an outsourcing company, you get access to specialized services WITHOUT adding to your in-house team. 

Curious about how outsourcing might fit into your strategy?  In this blog, we’ll cover what outsourcing means, the types of outsourcing you can choose from, and some examples of business functions that you can try outsourcing. 

1. What is Outsourcing?
2. 3 Types of Outsourcing
3. Commonly Outsourced Non-Core Tasks
4. Benefits of Outsourcing Non-Core Tasks
5. Most Commonly Outsourced Core Services
6. Reasons for Outsourcing Core Business Functions
7. Ready to Try Outsourcing?
8. FAQs About Outsourcing

What is Outsourcing?

Let’s start first by defining what outsourced services are. Outsourcing is a type of business strategy where companies hire external talent instead of hiring from the same country. 

These external talents are often remote workers located overseas, and are assigned specific job functions that have low security risk. As depicted on the U.S. Small Business Administration website, these tasks can include IT support, customer service, marketing, or even accounting.

3 Types of Outsourcing

When companies partner with outsourcing agencies, it involves one of three primary types: onshore, nearshore, and offshore outsourcing. Each one of these has its own set of  advantages and drawbacks, and the best one that suits your business will really depend on several factors, such as your budget, how much time zone difference you can handle, your tolerance for cultural nuances, plus the specific nature of the tasks you want to outsource.

Before you decide to outsource a function of your business, make sure to think about those factors first. Remember, the strategy that best aligns with your business objectives, maximizes the benefits, and minimizing potential risks is the best one for you.

Onshore outsourcing

The first type of outsourcing is also known as domestic outsourcing. This involves hiring service providers within the same country to handle specific business functions. 

• Pros - You can maintain control over sensitive data while adhering to local regulations and time zones. There is also a shared cultural understanding, better language fluency, and seamless collaboration. 
• Cons - Compared with the other types of outsourcing, this often has the highest price tag.

Nearshore Outsourcing

The second type of outsourcing that companies sign up for is nearshore outsourcing. This one involves hiring remote workers from neighboring countries to perform back-end or support-related functions. The geographical proximity of the workers help minimize cultural and time zone differences, and promote smoother communication.

• Pros - More cost-effective than onshore as your cost of labor goes down. Plus, nearshore countries are often in the same time zone and share the same cultural values which facilitates better communication. Another advantage is that onshore talents have access to high-quality infrastructure and technology.
• Cons - Although cheaper than onshore workers, this is still more expensive compared to offshore talent. Businesses also have less control over operations compared with onshore outsourcing. In some cases, language and cultural differences can become barriers to smooth operations. 

Offshore Outsourcing

The final type of outsourcing is called offshoring. This is when  business processes are moved or relocated to a different country, as in the case of most business process outsourcing companies. 

• Pros - Lower labor costs while increased access to a larger talent pool (both full-time and part-time) that can handle 24/7 operations
• Cons - Potential cultural differences and communication challenges, which can be solved by working with third-party agencies who have rigid screening and onboarding processes to ensure the remote talent is a good match with their partner business

Commonly Outsourced Non-Core Tasks

Non-core tasks refer to business functions or job responsibilities that don't directly contribute to a company's core competencies. In other words, these activities do not differentiate you in the marketplace. Think of the “routine” tasks your employees may be doing, such as data entry, concierge services, email services, cold calling, among others. 

By outsourcing such tasks, you can free up valuable internal resources and time, and instead divert your internal team’s attention to the more strategic initiatives of your startup. 

Here are some of the most commonly outsourced non-core tasks across various industries:

1. Administrative Tasks

• Data Entry: This is often done to save your team from tedious manual work.
• Appointment Scheduling: This frees up your front desk staff and improves customer experience by offering 24/7 support. 
• Transcription: This helps you get accurate transcripts more quickly.

2. Industry-Specific Support Services:

Some businesses choose to work with specialist firms who understand the industry's unique needs. Here are a few examples:

• Customer Support Services: An outsourced partner can handle fulfillment of e-commerce orders, order processing, inventory control, and even customer communications. 
• Healthcare Support Services: A specialist agency can help medical companies handle appointment scheduling, claims follow-up, and collections more efficiently.
• Legal Support Services: An outsourced team can perform legal research, document drafting and other legal administrative duties.

3. Specialized Expertise for Back-Office Functions

Traditional administrative tasks are not the only functions you can outsource. Even functions that specialized expertise, when working with the right outsourcing partner, can be easily outsourced and monitored.

• Marketing & Creative Services: You can hire remote designers, content writers, and social media specialists to boost your marketing efforts without managing in-house teams.
• Accounting & Bookkeeping: You can choose to expand your finance team during busy seasons to ensure accuracy and compliance in financial management.
• IT Support & Maintenance: If your goal is to increase customer satisfaction, you can hire highly specialized IT professionals from other countries to monitor your routine maintenance tasks, user support, and cybersecurity even outside your regular business hours.

Benefits of Outsourcing Non-Core Tasks

If you’re still not convinced of the advantages of outsourcing core functions, here’s a quick rundown of the benefits you can enjoy when you outsource:

• Increased Business Efficiency: Faster turnaround times and improved accuracy
• Focus on Core Competencies: More time and energy dedicated to high-value activities
• Access to Specialized Skills: Access to expertise that may not be readily available in your local market
• Improved Scalability: Easily scale your operations up during busy season, or down by adjusting the number of outsourced talent as needed

By carefully evaluating your non-core tasks and selecting the right outsourcing partners, you can streamline your operations, optimize resource allocation, and unlock new possibilities, not only the ones listed above.

Most Commonly Outsourced Core Services

In this section,, we explore some of the most commonly outsourced core services, highlighting the advantages each one offers:

Information Technology (IT) Services

These refer to IT infrastructure management, network troubleshooting, cybersecurity solutions. Some of the benefits of outsourcing IT include:

• Cost-Effectiveness: Even with a  limited IT budget, you can access essential services
• Expertise: Tap into a pool of IT specialists for maintenance or security measures.
• Scalability: Easily adjust your outsourced IT support as needed

Accounting and Financial Services

These refer to tax preparation and filing, bookkeeping, financial analysis and reporting. A few advantages of outsourcing bookkeeping and finance include:

• Accuracy and Compliance: eliminate errors and adhere to complex financial regulations.
• Cost Savings: Avoid the need for hiring full-time accountants
• Strategic Insights: Access to expert financial analysis and planning

Marketing and Digital Content Creation Services

These services include social media management, content marketing, search engine optimization (SEO), design and development of marketing collaterals..

Key benefits of outsourcing your marketing include:

• Better Brand Visibility: Engage your audience and expand your reach.
• Cut Costs: Reduction of marketing overhead costs
• Access to Talent: Work with a global pool of creative professionals

Customer Service and Call Centers

These services include phone, email, and chat communication channels, handling customer inquiries and complaints. Here are some of the benefits of outsourcing:

• Better Customer Experience: You can offer 24/7 customer support across various channels, and improve overall satisfaction.
• Cost Control: You can outsource routine customer service interactions while maintaining high touchpoints.
• Highly-Trained Talent: You benefit from trained and experienced customer service representatives.

Human Resources and Recruitment Services

These services include talent sourcing and recruitment, payroll processing, benefits administration, employee training and development. A few key benefits of outsourcing include: 

• Growth-Focus: Your HR teams can focus on strategic initiatives by outsourcing routine tasks.
• Compliance Expertise: You adhere to labor laws and regulations with dedicated HR support.
• Reduced Admin Burden: You streamline your payroll and benefits administration.

Web Design and Development

These services include designing websites, building and maintaining websites, e-commerce platforms, or mobile applications. A few advantages of outsourcing include: 

• Cost Savings: Avoid hiring and training in-house web developers
• Professional Quality: Get access to skilled web designers and developers for high-performing and beautiful websites.
• Scalability: Easily scale your web development team as your business grows.

 SEO and Lead Generation Services

These services include keyword research, page optimization, content strategy for search engines, website analytics, lead generation, and reporting. Some benefits you can enjoy include:

• More Website Traffic and Leads: Gain expert-led SEO strategies 
• Brand Visibility: Enhance your online presence and reach your target audience 
• Data-Driven Insights: Leverage website analytics to understand user behavior.

By outsourcing these core services, you can free up valuable resources in your company. Remember, carefully evaluating your unique business needs and finding the right outsourcing type and outsourcing partner agency are the two most critical things you need to seriously ponder on. 

Reasons for Outsourcing Core Business Functions

While outsourcing core functions might seem counterintuitive, it can offer significant benefits for US businesses. When you partner with specialized providers, you can unlock a range of advantages as mentioned above.

First, you unlock cost savings. A 2024 report by McKinsey & Company revealed that businesses achieve savings of 15-30% in operational costs by outsourcing specific tasks.

Second, outsourcing core functions provides access to a global talent pool. This means you can tap into specialized skills and expertise that may not be readily available to you through local job sites. 

Third, outsourcing can boost efficiency and productivity. When you delegate non-core tasks, your internal teams can focus on strategic initiatives that drive growth and innovation. This can lead to faster time-to-market, better product quality, and increased customer satisfaction.

Finally, outsourcing offers you flexibility and scalability. Your business can quickly adapt to changing market conditions and scale its operations up or down as needed. This is crucial in today's fast-paced business environment.

While outsourcing core functions requires careful consideration, it can be a powerful strategy for businesses seeking to enhance their competitive advantage and drive growth.

Ready to Try Outsourcing?

As the business landscape continues to evolve, outsourcing will remain a strategic tool for organizations of all sizes. By unlocking the benefits of outsourcing, businesses like yours can adapt to change, improve efficiency, and achieve sustainable growth. Embrace the future of work and explore the possibilities of outsourcing today.

We hope this comprehensive guide has shed light on the world of outsourcing. Remember, the key to successful outsourcing lies in careful planning, thorough research, and selecting the right outsourcing partner. By making informed decisions, you, as the business owner or leader, can harness the power of outsourcing to drive your business forward.

FAQs About Outsourcing

1. What are the most commonly outsourced services in the US?

US businesses commonly outsource a variety of services to optimize operations and focus on core competencies. Some of the most frequently outsourced services include:

• IT Services: Network management, cybersecurity, and software development.
• Accounting and Finance: Bookkeeping, payroll, and tax preparation.
• Customer Service: Call center operations and technical support.
• Human Resources: Recruitment, onboarding, and employee benefits administration.
• Marketing and Sales: Digital marketing, content creation, and lead generation.

2. Why should small businesses consider outsourcing?

Small businesses can significantly benefit from outsourcing, even though they may have limited resources. Some of the benefits are cost savings, access to expertise, improved efficiency, and scalability.

3. Is outsourcing only for large companies?

No, outsourcing is a strategy that can benefit businesses of all sizes, including small and medium-sized enterprises (SMEs). In fact, outsourcing can be particularly advantageous for SMEs, as it allows them to compete with larger companies by leveraging economies of scale and accessing specialized expertise.