WAYS TO INCREASE BOTTOM LINE OF THE BUSINESS

“The important thing about outsourcing or global sourcing is that it becomes a very powerful tool to leverage talent, improve productivity and reduce work cycles.” - Azim Premji

The concept of outsourcing has gained popularity in India from the last decade. India is considered to be the hub of outsourcing because the caliber and skilled youth present here contributes to the major part of highly skilled employable population and the cost per person is also low. Improving the bottom line of the business or in simple words overall profit is the major goal of all companies and the basic path to follow to achieve this goal is getting the things done by right people.

We can understand the above mentioned point through this example. Hiring a professional for some particular domain (at high cost location like US) might be more expensive than hiring three professionals (at low cost locations like India) for the same work. If we talk in terms of overall productivity, productivity of three persons will naturally be higher than one. Outsourcing works on the same approach. Instead of hiring a professional at high cost locations for the company, companies outsource their work to countries like India that possess pool of skilled professionals with less overall cost.

The bottom line of the business depends on many factors such as Return on Investment, Cost per Acquisition etc. If we do not analyze or manage our money investment schemes, we will drag ourselves in a pit of great loss. Return on Investment means to analyze before investing in something that whether it will generate a minimum desired profit or not. Sometimes we invest without analyzing and later we realize that our investment is bearing no return or less return that overall adds up to the loss for the company.

Cost per Acquisition means what minimum cost will be required for a certain resource and will that be useful to us or not for example acquiring traffic for the social sites of the company. The common approach is to spend more on acquiring traffic rather using the already acquired traffic for the purpose we need. In this way, you will reduce the cost per acquisition and using the already acquired traffic to the full potential will increase the bottom line of the business.

Another thing that must be kept in mind while focusing on increasing company’s bottom line is the market strategy. There is always a different market for different types of services a company has to offer. To target the correct audience will always help increasing the bottom line of a business.

Lastly in order to increase the overall profit of the company people who are dedicated and generate quick and good results must be hired. Overall profit of a company is directly proportional to the productivity of the people working in a company and to get sustainable profit companies can outsourcing their work to low cost locations which also offers quality services.