Why Businesses Outsource?

by Wasim Ismail on January 24, 2011

Despite that there is a big debate of whether outsourcing helps the economy of the outsourcing countries; the boost growth of this set up is insurmountable.

Some may think that outsourcing increase the unemployment rates in their countries so they may not be reclined towards this. But on the other hand some busineess think different as they continuously see the great potential of their businesses in outsourcing, saving them time and money.

Outsourcing first of all may help outsourced countries (like Philippines, India, Egypt and other countries), but also give chance to the outsourcing countries to focus on other aspects of the business, such as marketing and brining in more customers. Outsourcing doesn’t necessarily need to be done to another country too, it can be outsourced to other companies within the same country and region.

There are many benefits and reasons why business would look into outsourcing as a solution, below are some points to consider:

  1. Cost Effective

This is usually the main reason why some businesses choose to outsource. Jobs can be done in very low costs.
Usually, outsourced countries have lower currency values; high wage rates to them can still be very small to the outsourcing countries. Example, $300 is already a high one month salary to an Indian; hence this is roughly just about a weeks wage in states if not more.

  1. Job Specialization

A business can specialize on a few things but not in everything; And as it grows, the needs for more back office supports is required. To make sure that everything runs smoothly, a growing business can outsource specialized back office jobs like accountancy IT maintenance or legal documentations, along with web development and maintenances, so that they truly just focus on doing what they do best, which is their business.

  1. Continuity

There are instances that certain operations can be interrupted by unpredictable causes. Outsourcing can provide immediate aids to patch these interruptions and make the business operations still run continuously.
Outsourcing is also a great option in periodical jobs or timed contracts where businesses only need certain supports to finish one project and continue to the next projects.

  1. Office and Staff Management

Businesses can save energy in office and staff management as they outsource. They will only wait for the results of their projects and let the outsourced companies to manage their teams. No performance monitoring, no coffees, no office rents and no monthly payrolls to maintain.

  1. Faster Deliveries

More hands working on a task can decrease the time production. Outsourcing staffs can be the other hands of a firm to work on other business needs. To ensure that tasks and projects are completed smoother and faster with efficiency.

  1. Time Advantage

Countries have different time zones. This can be an advantage to some. While your internal staffs and clients are sleeping, outsourcing teams can do their outputs so that when you wake up, jobs are already prepared for the day.

  1. Client Satisfaction

Since there is an increasing number of outsourcing businesses, each outsourced companies should continue enhancing their skills and specialties to compete with others. They also need to meet the clients’ satisfaction in order to keep a lasting relationship and open door for future endorsed projects.

Outsourcing can be a smart and radical step of many businesses. Despite the risks of geographical distance, outsourcing proved output reliabilities and sincere partnership with the help of current technologies; and they are simply growing rapidly and are being accepted more in the business world.

I am just launched my own website which will provide outsourcing solutions for business, designers and development firms, that are looking to hire an in house web developer or designer as part of their organization.
Check out Hidden Web Genius.

Image: jscreationzs / FreeDigitalPhotos.net

 

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