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Outsourcing and Your Business

Outsourcing is when a company entrusts part of its business functions to an external vendor. Any business function that can be performed from an offshore location can be outsourced, from payroll and inventory to transaction processing and some customer service.

There are many different outsourcing strategies, but each one offers a whole host of benefits, including the following.

Outsourcing and Your Business

Cost 

The most obvious outsourcing benefit is cost. You can get the work done at a much lower cost through an outsourcing provider than you can in-house. This difference in cost is usually because of the difference in wages between Asian and western countries.

Outsourcing also eliminates the need to invest in business infrastructure, as the outsourcing provider makes all the necessary arrangements for infrastructures and related processes.

Efficiency 

Outsourcing partners often bring years of business expertise and experience to many different outsourcing projects. This expertise allows them to do the job more efficiently and effectively, potentially leading to increased productivity and profit for your business.

Focus 

Outsourcing tasks and business processes frees your in-house employees, allowing them to focus on more important business areas like building the brand, investing in research, development, and offering higher value services or goods.

Operational Control 

While it may seem like the opposite is true, outsourcing gives you more managerial and operational control of aspects of your business. Outsourcing companies usually have quality managerial skills, and can control business functions of often mismanaged or uncontrolled departments.

Staffing Flexibility 

Outsourcing gives you the flexibility to have cyclical or seasonal employees when necessary, and release them when not. This again saves you money and time.

Professional business people

Around the Clock Work 

The time zone difference between your business and most outsourcing companies allows you to get your work done during the day, and wake up to completed services that were expertly performed while you were in bed. This around-the-clock work can greatly benefit business operations.

Develop Internal Staff 

Sometimes your business takes on a large project that requires extra skills your internal staff does not have. You can hire an on-site outsourcing company to help you not only complete the work, but also train your internal staff to better complete similar projects in the future.

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Lynne Huysamen

Mommy to a pigeon pair, blogger and online marketer. Lover of chocolate, good books and buckets of coffee.

19 Comments

  1. Thanks for bringing this review to the public. I’m so sure there are many people out there looking for the detailed  information on how to outsource their business just like me, but haven’t found one

  2. In my line of work, which is Mechanical Engineering, and where I come from, outsourcing bears a different name, which is contracting. 

    Giving some one a contract job, is to give an external worker, a job to do. 

    I worked in a company of about, 7 workers, but we always have contractors (outsourcing workers) around. 

    While working there, I learnt more from the contractors than I learnt from the internal workers, because they were so experienced and open to teach. 

    • Hi Peace – yes I am sure that contract workers have learned a lot more since they have been exposed to working in many different environments and jobs. Thanks for sharing your experience. 

  3. This is an informative and educative article.
    Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company’s own employees and staff. Usually done as a cost-cutting measure, it can affect jobs ranging from customer support to manufacturing to the back office.
    You have thoroughly put everything in perspective for anyone reading this post to understand the points: what is and advantages of outsourcing. Outsourcing saves you money mostly on overhead. Work get better and faster when you out source contrary to normal believe that you waste money and time when outsourcing. this is because the firms are expert in the field with years of experience and  they will do the work diligently knowing that their retainership depends on how well they serve you so they give you the best and timely! i have experience this first hand as a maintenance engineer over the years.  

    I love you expository skill : short and precise!

  4. This article is much more informative to me because I’ve learnt a lot of things from it about outsourcing. I had no clear idea about what outsourcing is. Thank you so much for writing such an educative article like this. Outsourcing can save my cost and so on. You have written some great facilities regarding outsourcing. I’m curious to earn trough outsourcing. And the more I’ll try to complete my task using outsourcing provider. Overall your article was awesome to read because it was written in a easy language format.

  5. Outsourcing services are services most enterprises take advantage of. It’s mostly beneficial to small start-ups which may not have the capacity to handle bigger deals. I remember when I started out my small laundromat, I didn’t have a couple equipments, and i always liaised with a bigger company to satisfy my customers. It’s paramount to place the customers first, and meet their needs, even if it involves liaising with a competitor. Regards

  6. Outsourcing work is a great way to get more done in a short time.  Many think, outsourcing is meant for companies only but that is far from the truth.  I am a blogger and I outsource about half of my content.

    Finding the right place to outsource your work is key.  I use Fiverr a lot but I am sure there are many other platforms one can  use. 

    Do you know of any other platforms a blogger can use to outsource content writing and other related needs? 

    • Denise yes I also outsource some of my content writing – with 6 websites to run I just have to! Honestly I have not been about to find a good writer on Fiverr (not through lack of trying though) – I use Seoclerks for all my content writing. I have found some amazing writers there! 

  7. This is a well written article about outsourcing and your business. Most business of today have an outsourcing vendor out side. I knew some business around me that have some like accountant and external marketing companys that works for them.some outsourcing are called agent and they give the best experience in staffing and other business advise. This article is an insightful article. best regards 

  8. Yeah outsourcing your business is the only way eventually, you can only do so much on your own. I currently have 3 websites where I outsource writers to do the writing for me, it’s definitely worth the money as it frees up a lot of time for me to work on my 4th website. By outsourcing your business it increases the income potential because now you have a team working for you, the sky is the limit and you can scale it however high you want.

    • Son I couldn’t agree with you more. There comes a time where you have to get some of the work done for you otherwise it just becomes too much to get through. I also outsource some of my writing. 

  9. What an informative article! I can’t just went away without commenting, determining whether your invention will be successful or not is an integral part of being an entrepreneur. Here are the reasons inventors are outsourcing the review process to increase efficiency. I really appreciate the information in this post as an aspiring entrepreneur. I really like and adopt the aspect of operational control of outsourcing as it gives you more managerial and operational control of aspects of your business.Yes, Outsourcing companies usually have quality managerial skills, and can control business functions of often mismanaged or uncontrolled departments. All this benefit are really base. Thanks for sharing.

  10. Thanks for this interesting article,  Outsourcing is a great option for them to make the work process easier to handle. Those working in a local company may choose to outsource work so that they can continue to focus on the core business processes and small tasks can easily be passed on to outsourcing companies and it is now a major trend nn human resource. 

  11. Outsourcing certainly does sound like a really good idea when you have a really busy company.

    Even when you are a one person organisation, it is also possible to benefit from  Virtual Assistant who will do a good del of the “heavy lifting” for you so that you have the time to do the really important things. As long as your website earns enough for you, then a virtual assistant is a very good option.

    Very many thanks for your post

    Chrissie 🙂

    • Yes Chrissie, I agree with you there. My business goes through ups and downs. Sometimes I have too much work to complete on my own and there are other times where there is not so much business coming in, so I outsource when I need to and when it is quieter I do everything myself. It works really well for me!

  12. Even though I am a bit sceptical about outsourcing because it takes away jobs from the economy but I must admit that it is very cost effective especially for businessess on a tight-budget. A company I once worked for, had to downsize and they laid off a lot of workers and then outsourced them to a company in Asia. We actually started seeing the benefits of the outsourcing.

    I think businesses should only outsource if the absolutely must.

    • Thanks for your input Vapz – yes it is very sad when people lose their jobs! I think for small business outsourcing is a great way to go about it, especially when the company is not able to take on full time employees. I outsource some of my work when I need to which really suits me since I am not in a position yet to take on a full time or even part time employee! 

  13. This post is very interesting and completely informative. I have been hearing from my friends talking about outsourcing but then I overlook having this feeling that it is not important. Now I know that outsourcing is when a company entrust part of its business function to an external vendor. And it is captivating following the fact that outsourcing gives you more managerial and operational control of aspects of your business.and I have also known that they have quality managerial skills, and can control business functions of often mismanaged or uncontrolled departments. And again, it saves you money and time.

  14. Hi Lynne Huysamen,

    This is a great informative and helpful article about outsourcing and business. I have recently learned some tips that I can hire some one for writing and designing task and I can concentrate on on line promotional works. I believe that this type of opportunity can help us to rise our on line business. So I have same opinion and agree with you that we need to outsource some works for better establishment which will save our time and money also. Thanks for writing this important tips.

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