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Outsourcing In Your Small Business - The Advantages

Aug 13, 2008
Outsourcing is rapidly increasing in popularity. Some of the largest companies in the UK use outsourcing to their advantage. Sky, for example, outsources most of their call handling and sales to an outsourced call centre. This means Sky can leave their sales and customer services to the experts, while they focus on business strategy. But, it isn't only big business that can benefit from outsourcing. Your small business can benefit too.

Small businesses often benefit more from outsourcing than larger businesses. A smaller business can't always afford to take on a full-time web designer, lawyer, accountant, sales person, and marketing expert. Instead, they can use expert service providers when they need them. Here's how outsourcing could benefit you:

Leverage The Global Marketplace

If you're a UK business then you may find that the hourly rate of hiring someone in the UK will be more than ten times higher than the wages you would pay someone somewhere else in the world. You will therefore be able to save significant amounts of money on labour expenses. As a small business, it's unlikely you will see much business benefits in setting up an office overseas, but you can still benefit from cheaper wages in the developing economy.

You will not be able to outsource everything overseas, but you will be able to outsource many tasks. Software development, marketing, and administration are popular functions to ship overseas.

Have Expert Talent On-Tap

When you're a small business, you may find that you and your management have to be the jack-of-all-trades. You are setting up computers, doing the accounts, marketing your business, closing sales, and even doing office repairs. This is great if you've got lots of spare time, and you're an expert at all of the above. Most people aren't. And that's why outsourcing works great.

When it comes to your accounts, you can outsource to an accountancy firm. When it comes to your marketing, you can commission a marketing agency. It's possible to outsource nearly everything; even a virtual assistant to answer your telephone calls.

However, keep in mind that no two service providers are the same. You should spend just as much time and attention in hiring a service provider as you do when taking on a member of staff for your small business. You need to be able to trust them with the success of your business.

Flexibility To Grow

Outsourcing can give your small business the flexibility that it needs to grow. Some businesses can't afford to have too many or too little sales in one week because their infrastructure doesn't allow for it. When you outsource, however, you can ask marketing agency to drive more sales in a given week. And you can ask your manufacturer to increase production, or decrease production, to fit with the growth trends of your business.

When you're a small business, the last thing you want to do is take on staff and have to let them go when business opportunities become scarce. With outsourcing, that's something that's far less likely to happen.
About the Author
CityLocal is a small business directory that has lucrative franchising opportunities for smart entrepreneurs. www.citylocal.co.uk & www.citylocal.ie
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