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Why Outsource Your Business?

May 23, 2008
Outsourcing is used by business, both offline and online, as a means both of saving money and of providing an improved service to their customers. This is particularly so in the field of information technology where the skills needed are wide and varied, and it is unlikely that any specific individual will be trained in all aspects of IT and computer technology.

Software development and maintenance, for instance, is frequently a very specific skill, and people tend to be highly trained in particular aspects of the business rather than have a working knowledge of them all. Software analysts can be skilled in specific languages or areas of software use, such as databases or Cisco technology, or specialize in networking or wireless systems, but very rarely in all of these.

That means that a company that is liable to come across problems in these varied areas of computer and internet technologies, often find it better to outsource specific tasks than to employ specialists who would be able to handle only a finite number of these needed tasks.

Many companies use outsourcing in their business, and if you are unsure what that is you should find out, since it can save you both time and money and help to fill the missing skills gaps that are amongst your employees. Outsourcing is collaborating with another company or person to perform a certain function for the company. Although some people think that outsourcing is something new in the world of business, it's actually the opposite. Outsourcing has been in existence since the concept of work specialization was first thought of. One good example is a small businesses outsourcing their accountancy work when tax time comes along.

The reasons for outsourcing are fairly obvious when you take the time to think about it. Some tasks are needed so infrequently that is not financially justified in employing a full time specialist. The business benefits from having occasional tasks carried out expertly and competently, and at minimal cost. OK, the actual price paid might be higher than if your accountant or software designer were an employee, but the ultimate cost is a lot less since the employee's salary would be significantly higher over the year than paying for tasks as and when they are needed.

First and foremost, the main advantage of outsourcing a certain function is that you are sure a professional knows what he or she is doing. You are hiring the training and ability of a professional. Certain tasks might require a fully qualified and certificated specialist for you to meet your legal obligations. That's why businesses outsource to other companies who are experts in a certain function.

For example, a computer consultancy firm might operate a certain type of software, but they have a client that uses an operating system with which that software is not compatible, and a modification has to be development. This might not be a common situation, and employing a full time programmer for this task would likely not be viable. They would have very little work to do. Therefore, the job is outsourced.

Internet marketers understand the need for good online content on their web pages, but often do not have the time or resource to write it themselves. They therefore outsource their content to article ghostwriters who provide the service at a lower price than would cost the webmaster if the spent their own valuable time writing.

The main advantage of outsourcing is that you don't need to put the outsourcing company or the person on your payroll. You simply agree on a set of terms with the service provider. You won't be worrying about any monthly payroll. It's as simple as that.

Another advantage of outsourcing is being able to save on benefits. If you choose to hire a professional who specializes on that specific function that you don't have in your company, you will need to give him benefits just like any other employee. However, if you get a contractual professional or outsource the task to another company, you won't be spending to provide the benefits.

Aside from being able to save on benefits, you will also be able to free up your Human Resources department. Hiring is a complex business, and outsourcing can frequently be just as economical as hiring a permanent employee, only without the responsibility and much of the paperwork. Outsourced work offers guaranteed results, while if an employee does not do the job properly you have to sort out the problem yourself.

Another important advantage of outsourcing is allowing your business to be more flexible. This ties in with some of the other advantages, but it does mean that you don't have to find work for people that you don't personally employ. You can outsource at irregular intervals, and so design your work schedule to suit you rather than to ensure that employees are being continually utilized.

There is no doubt that outsourcing is an economic way to have certain tasks carried out when you need them, and that it frequently gets the job done quicker and more effectively than relying on the varied skills of your own employees.
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