Top 4 Benefits of Outsourcing for a Small Business
A business may choose to have a particular job function performed outside the company by an individual or business. More than two million jobs are outsourced annually. Research and development to call center jobs are often outsourced to other countries. Large corporations as well as small businesses are choosing to outsource.
- Reduced Costs: Businesses are able to pass on the savings gained by outsourcing to the consumers. This enables a business to maintain a competitive edge in the marketplace. Lower pricing translates to a higher standard of living for the community. Companies may not need to purchase expensive equipment by outsourcing some functions. Tasks that require expensive equipment may be outsourced to a business that specializes in performing the task. All IRS guidelines should be followed when hiring an individual contractor to perform job functions to avoid penalties.
- Tasks Performed by Knowledgeable Professionals: Freelance writers, IT contractors, human resource professionals, accountants and others may be hired to perform tasks as needed. The tasks are performed by knowledgeable and skilled individuals that a company simply could not afford to hire full time. Outsourcing allows small businesses to perform tasks as well as larger corporations. Company employees may focus on performing core tasks. An employee may have a degree, but may be lacking in experience to find a solution. Specialists may have a solution already developed for the problem.
- Tasks Completed During Periods of Employee Turnover: A high standard of operation may be maintained during employee turnovers or leave. Job tasks may be temporarily contracted out. Employees on medical leave will return to work with all tasks up-to-date. Clients or customers will not suffer due to employee leave or turnover.
- Risk Management: Outsourcing reduces a company’s risks. Outsource providers are knowledgeable of government regulations, marketing strategies, competition and other factors that are beneficial to risk management. Good risk management equals increased profits.
*Photo courtesy of Software Outsourcing by Mob Man at Flickr’s Creative Commons.