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Offshoring and outsourcing

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Offshoring and outsourcing (Offshoring and outsourcing: the pros and cons, what should the company outsource?) Most of the productive companies outsource their secondary tasks to other companies who are specialized in those tasks. This strategy allows you to focus constantly on your key business mission. It increases your productivity when you are completely focusing on your core missions. Entrepreneurs should outsource non-essential functions almost immediately upon launching a business to let them focus on the function they specialise in. The expected return is greater than the investment. There is always a huge financial savings upon outsourcing and finishing the particular exercise. The savings you get are much obvious that you don't have to spend your time and money on resources tools, technology or even infrastructure. You don’t have to spend and invest your money on employee wages, training, resources, vacation time, sick leave and health insurance. By choosing an excellent offshore service provider, your outsourced task will be handled by a team of technical experts in that specific area. For example it is better for your company to hire once a year an accountant than hire an accountant and pay for her job all year. Offshoring and outsouring has also its cons. Whenever your company outsources a specific task to offshore, language and culture appears to be crucial hurdles for successful finishing of the project. It occurs obviously since your offshoring partner's first language is not English. You and your offshore partner are culturally diversified. This cultural contrast may lead to miscommunication which will reflect on their performance. Offshore outsourcing companies have different time zone compared to yours. For example, if you are from the US, consider that you have outsourced your company's website work to a web development company in India. If you are in the urge of doing few things to your requirements, you can't get in touch with them in their non-working hours. It's because Indian time is 9 hours and 30 minutes ahead of Washington, DC, USA. Some offshore companies promise an optimum solution for a very low quotation. There is a probability that quality of the end product may not fulfill your expectations. Working with bigger offshore companies, quality will be accaptable, but the cost of services may be pretty high. There are a lot of areas to outsource. As entrepreneurs, small or big companies you should look at your team, your processes and the work you have to do on a regular basis. They should consider outsourcing those areas where you and your team struggle. Also, look at the difference in costs between a full-time hire and outsourcing. That difference alone could help you decide. Increasingly, owner of small businesses in wide variety of fields are outsourcing executive-level positions such as Chief financial officer and chief Marketing officer. Experts say that CFO position is especially ripe for outsourcing. Entrepreneurs often don’t know how to handle things such as cashflow projection. If you really don’t want to make mistakes when you handle the finances for your business, you should definitely outsource it. Outsourcing this position can save money compared with a full-time employee. Rather than handling your own payroll, or maintaining the overhead of a full-time accountant, outsource your payroll to a reliable service. Rather than spending your time producing and distributing content, or hiring a marketing team to handle it, it is much better outsourcing it. As a small business owner, you need to focus on your core processes to grow your business. When you hire an assistant, you’re paying only for the hours in which tasks are being handled, and you can eliminate a lot of wasted time spent on emails, appointment-setting and other repetitive tasks.

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