The Importance of Outsourcing for Small Businesses

Outsourcing has become one of the hottest topics in the business world over the past few years, with so many tasks in the workplace now capable of being carried out by outside parties.

The process has jumped in popularity particularly as more and more small and medium sized enterprises have taken their first tentative steps online, in the hopes that they can get their venture off to a flying start. Mind you, there are other ways to outsource which do not focus on web-based operations.

However, any employer who is considering seeking out a helping hand from a third party so that they can streamline their workplace processes have been urged by Chris Runckel, the president of Runckel & Associates in Portland, Oregon, to not rush into the decision.

He pointed out to the National Federation of Independent Business: “Outsourcing is not something that you should go into lightly. It’s something that takes a lot of thought and quite a bit of work.”

This following guide should help answer all the questions you have about outsourcing, as well as where to begin when actually pursuing the option.

The benefits of outsourcing

As long as it is done right, outsourcing is a very good business strategy – it would not have become half as popular as it has otherwise.

There are so many reasons why this is the case, including the fact that you are allowing important processes in your company to be handled by experts in the field.

Employing people to carry out the same operations in-house would require quite a considerable chunk of time to train the staff, as well as the need to buy all of the essential equipment. Obviously, both of these tasks are going to require a lot of money to be spent in one go.

By avoiding the task of employing extra staff members or handling operations such as payroll and web development, employees at a company will also be able to free up more time to focus on delivering their goods to their customers and carrying out the tasks that they were employed for in the first place.

Of course, it is vital that you do your research and pick the right outsourcing companies for certain tasks to ensure that the operation is benefiting you as much as possible.

Here’s a tip – make sure you seek out a reference from another firm who have used the provider you are looking at before you agree to a deal. After all, a little peace of mind could be the difference between making a really good decision and a costly bad one.

What to outsource

As mentioned earlier on in this article, there are so many processes in your workplace which outsourcing providers are eager to help you out with today.

For example, have you just established a domain name so you can move your company online but now have no idea where to go next? Allow professional website programmers and designers to take over this task and before long you will have a website which could compete against even the largest organisations in the industry.

Meanwhile, human resources is an area of business which is filled with core duties that must be handled on a daily basis, but can prove a huge burden if an employee is trying to juggle these tasks with their other work commitments.

Fortunately, outsourcing can help to ease this burden substantially. For one, there are great specialist firms around which specialize in hiring processes, so that you can employ new members of staff who are up for the job without any hassle.

Then there are experts in payroll outsourcing, who will strive to ensure that all of your employees are paid accurately and on time, every time, no matter what.

Of course, this is only scratching the surface where outsourcing opportunities are concerned. How Stuff Works have provided a list of the 10 most popular jobs to outsource – which you can view here. Just remember to do a little research before signing up with a provider.

lee doverThis article was written by Lee Dover on behalf of NashTech Software, who are specialists in outsourcing software development and strive to reduce the outgoing costs of their clients while also ensuring they become more efficient, innovative and resourceful in their business processes. Lee has a BA (Hons) in Journalism after graduating from the University of Sunderland in 2010 and has since produced engaging content for a host of websites and blogs. Topics which he has tackled range from looking at the latest models to hit the car market to analyzing ground-breaking moments in the technology world.

Image courtesy Florian Simeth
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  1. Small businesses are usually the ones that lack resources. And because of that, it is of great importance for them to at least outsource some tasks that could let them get off their core business. Outsourcing’s advantages are limitless and small businesses should benefit from all those.

  2. For a growing small business it is very crucial that they pay more attention to actual task of business rather than in administrative work. For this it is beneficial if they hire an outsider to do their administrative tasks.

  3. Outsourcing is important for several reasons. The first is with outsourcing companies can concentrate on what they do best and outsource work to experts in the area they are outsourcing. This results in cost savings for the company doing the outsourcing. Some companies outsource offshore as well as onshore in order to keep their costs lower so they can keep the prices to consumers lower. Outsourcing offshore can also help with finding enough employees to do the work that needs to be done. Outsourcing is also helping third world countries develop and provides employment opportunities to it’s citizens. We are in a global economy and to think that you can simply keep everything inside the US is not realistic.

  4. Thanks for this article. I might also like to say that it can end up being hard if you find yourself in school and merely starting out to create a long credit rating. There are many learners who are only trying to endure and have long or good credit history are often a difficult issue to have. kdkabbfekaee

  5. As a small business owner, i find the services offered by BPO companies like FilWorX as vital to the overall success of my business. Outsourcing has really been an important factor for the everyday accomplishment of tasks in my company and I’m glad there are professional virtual assistants who are always willing to extend their hands to my clients.

  6. Hey Lee,

    Nice Post Buddy !!!!!

    You have very simply explained the term outsoure and its benefits for small businesses. Nowadays it’s seen that small businesses are at peak and there are large number of companies investing in them. Outsourcing is the rising part of their business. Thanks for sharing such a wonderful piece of information. Keep Posting !!!!!!!

  7. While this phase of outsourcing isn’t driven by cost as the only reason for doing so, there is still a cost benefit to be seen. Partners that are experts in a specific area can work at a high level of efficiency, help eliminate redundancy and lower the cost of doing business.

  8. Regardless of what area of your business you might be thinking about outsourcing, the bottom line here is that taking part in this extremely worthwhile activity will give you the opportunity to expand your business at the same time as saving costs.

  9. Hii Lee,
    We think the main purpose of outsourcing is to offset your in-house weaknesses. And enjoying a certain amount of flexibility that allows small businesses to outsource, should be the rising part of their business. Very informative share.

  10. Every business investment carries a certain amount of risk. Markets, competition, government regulations, financial conditions, and technologies all change very quickly. Outsourcing providers assume and manage this risk for you, and they generally are much better at deciding how to avoid risk in their areas of expertise. Thank you for this great information!

  11. Just as stated in the article, outsourcing brings immense benefits to a business; else it won’t be this popular. However, it must be done thoughtfully. When looking for an outsourcing company, they must have the expertise and industry experience. Generally, your outsourcing partner should be customer-centric; this means they will prioritise your success as theirs.
    David recently posted..What is Software Development OutsourcingMy Profile

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