I’ve been reading some articles and I thought I’d share this one. It lists why outsourcing could be a good solution for those starting up. Here are some snippets from it.
Outsourcing by sending some of your company’s work to a third party is an increasingly common way of doing business in the 21st century. It was first developed in the late 1980sas a way companies could gain a competitive edge in the newly global market, and is now used widely across a number of fields. Here are just some of the reasons you should consider outsourcing for your business.
Labor costs – One of the main reasons businesses began outsourcing is because it is an effective way to decrease labor costs. This is because, rather than employing a number of full-time staff who are on the payroll even when their services may not be required, outsourcing provides you with a flexible workforce who can work only when needed.
Efficiency – Outsourcing also leads to increased efficiency, because you are entrusting non-central company functions to experts elsewhere. Since these vendors are specialists in their area, they are intimately familiar with its ins and outs in a way that members your employees couldn’t be without extensive investment and training.
Core business functions – When you keep all of your businesses functions housed together, things get busy and complicated, and your core functions can get overwhelmed by outside issues. If you outsource those back-end pieces of your company though, it allows you to focus all of your attention and resources on more essential parts of the business.
Customer satisfaction – The increased efficiency and ability to focus on your core business functions that come with outsourcing will also have a large, positive impact on the satisfaction of your customers. You’ll be able to produce your products and services faster, which is always a hit.
Risk management and continuity – Risk management is central to any business, especially during times of change, such as mergers, downsizing, or management changes. Outsourcing certain departments can help in these transitional times because it lets those areas of your company’s work remain unchanged.
Globalization – Sending part of your business overseas also enables you to plant your company more firmly within today’s increasingly global markets. Depending on where your outsourced functions are located, you may also gain a time zone advantage from this new arrangement by having offices that are in sync with different world business schedules, allowing you to operate close to 24 hours a day!
Flexibility – Adapting to changes in the market requires the flexibility to make changes to your company’s size and costs in response to a changing market. You need to be able to react in time to cut the necessary costs during downturns or to ramp back up when the market bounces back. Outsourcing can help solve this problem because it lets you have short term and flexible contracts with your outsourcing partners. Then your company can cut down or ramp up on staff, production, etc. right away in response to changes in the market.
Resources – Having some of your businesses functions outsourced also gives your company accessed to new resources and frees up resources that would otherwise be devoted to those back-end functions. With the outsourced aspects of your business now being taken care of by experts in the field, you’ll no longer have to use resources on recruitment, training, or salaries for those competencies. Plus, by creating a connection in a new, possibly overseas location, you may open your business up to more cost-effective resource streams.
Innovation – By outsourcing non-core functions of your company, you allow your business to focus its attention and energy on more central aspects of your work. Part of what your newfound time and energy can go into is developing new ideas.
Find the full article here, and don’t hesitate to share your thoughts with me. You can email me at email@example.com, or call me on 0488 548 854 if you want to talk about outsourcing for your small business.