The 3 Benefits Of Outsourcing
Much has been said recently about global outsourcing. Some people think it is an exploitation of labour, some think it is the greatest thing to happen to their business since the advent of the internet; I am of the latter group.
There are tons and tons of benefits businesses can derive from outsourcing tasks, and in this article I would be covering 4 of these benefits.
Save Money
Once again, this is a point worth a certain degree of contention. Some people think that outsourcing is a cost... And I disagree with that assertation. But rather, it should be seen as an investment in your business. This really us dependent on the size of a company, but outsourcing nevertheless provides a cost cutting measure that a small or medium size entreprise (SMEs) needs to survive in the cut-throat global economy of today.
And this also allows these SMEs to provide services and goods that are similar to that of large corporations, which give them a competitive advantage.
Efficiency
More than just a cost cutting measure, outsourcing also gives businesses an opportunity to streamline its operations by doing away with jobs that take up precious in-house resources.
This means that there needn't be whole departments in a corporation simply dealing with accounting, shipping or customer relationship management, for these can be outsourced to offshore employees whom are more skilled.
On a side note, when a company outsources, it saves the opporunity cost of having to train and groom a new recruit for a new position, and instead simply employs off-the-bat an outsourcer whom already has the necessary skill set.
Specialization
This is a continuation of the point above; precisely because there are so many outsourcing firms out in the world, there are many of them in a variety of niches that would be able to cover the grounds for many different corporation's needs. Even single-man entrepreneurs can benefit from this specialisation, where jobs like book keeping, technical web design, graphic creation, advertising campaign management or programming can be outsourced to individuals who are far more skilled, specialized and definitely cheaper.
Outsourcing is a phenomenon of our flatter world today, where we enjoy the fruits of a global economy with instant communcation. Corporations without the resources to perform certain specialised tasks now have choice to outsource any task to a third party firm. This has often led to better quality work with a lower price tag attached to it... and at a greater effiency to boot.
There are tons and tons of benefits businesses can derive from outsourcing tasks, and in this article I would be covering 4 of these benefits.
Save Money
Once again, this is a point worth a certain degree of contention. Some people think that outsourcing is a cost... And I disagree with that assertation. But rather, it should be seen as an investment in your business. This really us dependent on the size of a company, but outsourcing nevertheless provides a cost cutting measure that a small or medium size entreprise (SMEs) needs to survive in the cut-throat global economy of today.
And this also allows these SMEs to provide services and goods that are similar to that of large corporations, which give them a competitive advantage.
Efficiency
More than just a cost cutting measure, outsourcing also gives businesses an opportunity to streamline its operations by doing away with jobs that take up precious in-house resources.
This means that there needn't be whole departments in a corporation simply dealing with accounting, shipping or customer relationship management, for these can be outsourced to offshore employees whom are more skilled.
On a side note, when a company outsources, it saves the opporunity cost of having to train and groom a new recruit for a new position, and instead simply employs off-the-bat an outsourcer whom already has the necessary skill set.
Specialization
This is a continuation of the point above; precisely because there are so many outsourcing firms out in the world, there are many of them in a variety of niches that would be able to cover the grounds for many different corporation's needs. Even single-man entrepreneurs can benefit from this specialisation, where jobs like book keeping, technical web design, graphic creation, advertising campaign management or programming can be outsourced to individuals who are far more skilled, specialized and definitely cheaper.
Outsourcing is a phenomenon of our flatter world today, where we enjoy the fruits of a global economy with instant communcation. Corporations without the resources to perform certain specialised tasks now have choice to outsource any task to a third party firm. This has often led to better quality work with a lower price tag attached to it... and at a greater effiency to boot.
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