Web Design & Development: What you should consider?

Turning to third-party project based providers in design, development and marketing projects or parts of projects has become a very common process in the world of eCommerce – and you really don’t need to be a Fortune 500 company with masses of cash to utilize and benefit from outsourcing.

A good scenario would be, a client comes to you for a quote on a web site and it’s the perfect job – except from one element in the project – you’re not skilled in a particular web technology. This component is a crucial element in winning the contract, there’s no way of getting around it. What do you do? You don’t want to lose the contract, but you definitely can’t afford to hire a new employee for this project – there’s too many risks and associated headaches involved in this process.

Or how about a situation with your own website where you need a bit programming done and simply don’t have time to do it, or the head-space to learn to do it yourself? Isn’t your time better spent on your core competencies, the skills that generate cash for you?

Another scenario is where you have so much work load on at the time that you really don’t have the resources to take on a full project. In these cases, small companies tend to refer the entire job on to others. But then you lose the client forever to the other company. Wouldn’t it make more sense to secure a binding contract, outsource everything and oversee the development? That way if one of your current projects falls through, you will still have work and you will also more than likely gain future work from that client.

So much technology, so much competition

Web development is a huge field with dozens of technologies involved – no way a small development company or site owner can cover everything. However having no access to expert designers and developers, small to medium-sized companies can lose many projects or market share through a lack of suitable expertise and skill sets.

The idea of outsourcing projects or project components may strike fear into the hearts of many small operators, but the future success of your company may depend on it – otherwise you may find your customer base drying up.

What should I outsource?

Most small web design and development companies naturally achieve great expertise in specific areas – these project areas are the ones that they are not only particularly good at, but also the fastest in generating. We all build up our repertoire of “tricks of the trade” over time, and these are the elements of any contract that it makes the most sense to keep.

Where are the bottlenecks in your development processes? If developing graphical elements for web sites is one of your challenges, then it only makes sense to outsource that work. You may feel that paying $80 an hour to an expert graphic artist is too steep considering your standard rate is only $50 an hour, but consider this example:

A client wants a Flash element created and Flash isn’t one of your stronger areas, so the length of time it will take you to create that element is a bit of an unknown – and you have already set the entire project price, which the client has agreed on. You end up spending 6 hours on designing the Flash animation to the clients satisfaction.

At a rate of $50 an hour, that element has cost you $300 to create. If the Flash component had been outsourced to an expert, although they may have charged you $80 per hour, it only took them 2 hours to create. Add on one hour for the time you spent consulting with the Flash expert and the total cost of this element is down to $210. Even if you spend two hours on consulting, you are still well and truly ahead, lessened your stress and freed up time to spend on other projects or elements.

If you are a web designer and you are also responsible for keeping your business financials up to date, then you are probably losing money. A contract bookkeepers’ services cost a lot less, generally speaking, per hour than the value of your own labor. It makes financial sense to maintain this aspect of your business yourself if you don’t have a lot of work on the boards or does it?. If you don’t have sufficient development work to keep you busy, then the hours you are spending on maintaining your books would be better spent in submitting tenders and marketing your business.

How do I outsource?

It doesn’t have to be a difficult process, although the first time you outsource project components, it will take a little time to get the paperwork together. After the first project, the necessary base documents will be in place which will expedite future collaborations.

Before agreeing to outsource work to another an outsourcing provider, ensure that base documents covering the terms of the relationship, intellectual property and confidentiality issues has been developed and signed – these are fairly generic documents which can be easily adapted to be functional in a number of different projects. These don’t necessarily have to be hundreds of pages long – just enough to be recognized as being legal and binding to protect your interests.

After you have the basic documentation in place, it’s time to spread the word that you are looking for contractors. This can be gone about in a variety of ways.

  • Through your current networks – let your peers know you are looking for contractors (Your first degree connections may have some excellent referrals for your search)
  • Compiling a mailing list of developers and designers from online professional directories in your region and then contacting them requesting expressions of interest regarding collaboration.
  • Go global and use one of the many reputable outsourced web development and design. In most cases you’ll find that posting projects is free and the service may also assist you with developing the project specifications.

The last few years has seen a number of outsourced companies have come to life, but be wary and study the companies carefully before outsourcing. Some companies may or may not be as transparent

BIG BLOCK Solutions  can help on all your needs on web and digital product development. None of the risks with the emphasis on all the benefits of a long term partner to help you overcome challenges in these areas.

Before you start outsourcing, ensure that you know exactly what you want a sub-contractor to do. Open-ended arrangements tend not to work out. There must be timelines and effective parameters of operation in place – both parties must be very clear on each others’ role.

Communications between contractor/sub-contractor must be clear, concise and rapid at all times – assuming that a task will be carried out in a particular way can lead to disaster; especially when working with contractors from another country.

Benefits of global outsourcing

The benefits of advertising for developers and designers globally are many. By building up a network of professional contractors, you not only decrease your running costs as each contractor is responsible for his own work environment and insurances etc, you also greatly expand your company’s portfolio of skills that can be offered to clients.

By outsourcing project components you aren’t efficient in, it will leave you with more time to focus on your core skills and further develop those.

In advertising project components globally, you will also probably secure the best price possible for the work. India and Eastern Europe have many thousands of quality freelance programmers looking for work, and their rates are incredibly low in comparison to their Western counterparts.

Challenges of outsourcing

One of the biggest temptations of outsourcing is to source for the lowest bid in order to maximize profits. This is definitely not a good practice, especially when dealing with freelance developers and designers from other countries. If problems should arise it may be more difficult in having them rectified. Remember that your business reputation is on the line and if the designer or developer doesn’t deliver, your could lose the client, and worse still, your business.

This is not to say that all low bids will translate into poor quality work, instead you need to research these bids carefully. These questions may help your build and meet you criteria.

  • How long has the company/freelance been around for?
  • Do they have a portfolio?
  • Do they have referees?
  • What are their qualifications?

If you are using an online collaboration service, read the comments left behind by other companies – these will give you some indication as to the competency and integrity of the freelance or a company.

In any outsourcing arrangement, if you get “bad vibes” it’s best to heed your instincts and not continue with negotiations – too much is at risk.

Communication can also be a bit of a challenge. If you receive a bid from someone in very poor English (if that is your primary language), it’s best to keep away. I’m not just referring to foreign developers – the literacy skills of the modern Western world are quite appalling.


The Internet, by and large, is still about written communication. If you have to spend hours correcting the grammar and spelling mistakes on a web page or in an online application, then the whole exercise is pointless. Even if the project components you want developed are only graphical, if the sub-contractor’s use or comprehension of the English language is poor there is a risk they will not understand exactly what you want. A great deal of time will be lost in the to and fro of revisions.

It’s for this reason that I suggest that if you do intend to utilize contractors who haven’t lived in the West or are from a country where Western culture isn’t really prevalent, it’s best not to give them elements of the work relating to marketing without very strict specifications.

Also bear in mind that although you may be able to hire an overseas developer for (example) $10 an hour, it will probably cost you $20 per hour with the inevitable. communications issues that will occur.

Trust and Outsourcing

If you do decide to go down the outsourcing path, remember that the developers and designers you contract are, to a degree, partners in your business. In many cases, your “partners” will need to know the big picture of the project. You need to convey clear instructions to ensure that its communicated properly. It also means you will need to invest some trust in them – they are not the enemy, but a crucial element in your online success.

Trusting too much can also have its dangers – there are cases where contractors have created malware and built it into applications they develop for others. This malware can collect sensitive details from improperly protected users. Imagine the impact a situation like that could have. In other instances, contractors have been known to leave holes in applications for the purposes of then returning later to gather sensitive data.

Trust can be a double-edged sword; another good reason for reviewing potential outsourcing contractors *very* carefully.

If you, or perhaps a staff member, has the ability to read and understand code, it may be wise to review any applications developed to ensure there’s no hidden nasties; but again, using an appropriate level of discretion from the outset when outsourcing can minimize any potential threat and add great value to your business. It’s an ounce of prevention vs. a pound of cure.

Something to Ponder: Business Choices, Innovate or Outsource?

CIO‘s outsource for a variety of reasons: better service performance, lower costs, greater efficiency and, in a few cases, to be seen as the executive making an impact.

Irrespective of the rationale, most share a common expectation that their outsource partners will offer creative and innovative solutions throughout the contract. 
This was highlighted in a 2009 survey by Forrester Research which found that over 40% of organisations outsourcing IT services cited the lack of innovation or continuous improvement as their greatest challenge with vendors.

With most IT suppliers recognising that the development of innovative and creative solutions is critical to their success, where does the problem lie? Often it simply comes down to organisations not articulating what is expected by way of innovation from their outsourcing vendor. This can be resolved by drawing on a technique from the IT Service Management toolkit, namely the Service Improvement Plan (or SIP). The SIP can provide the basis for an innovative response provided that the requirement is well defined, the context is set correctly and there is a means of measuring success.

Defining the requirement

In other words, articulate the question to which you think innovation is the answer. To provide real value, innovation must be defined in the context of business objectives – it may be transformation efforts that improve shareholder value or create a level of strategic or tactical advantage. For business stakeholders, this could result in increased sales or improved customer satisfaction. Only with that level of understanding can an innovation discussion be clarified.

Speaking of innovation,  No longer is it just a matter of doing more with less; organisations are increasingly seeking growth through innovation, and cost -cutting in isolation is a game of diminishing returns.

In this environment, we’re seeing a move to smartsourcing.

Cloud computing and the growth in flexible, rich services it enables have transformed the concept of outsourcing, sparking an evolution in the way organisations think about flexible, cost-effective, project-based workforces.

Traditional outsourcing saw companies contracting out entire business functions or projects to external providers. Good while it lasted – and this kind of outsourcing will continue to play a role – but the advent of Cloud computing has brought with it the kind of flexibility, dynamism, scalability and cost-savings that traditional outsourcing simply cannot compete with.

With so much unpredictability in the current climate, why get bogged down in complex contractual arrangements or sign up for set, time-based projects when you don’t know what’s around the corner?

One of the greatest assets of Cloud isn’t just its capacity for driving down costs, but the way in which it enables the kind of on-the-fly sandboxing and experimentation that traditional outsourcing simply cannot provide.
In the past few years, many organisations have become used to consuming IT as a service; the utility model that Cloud supports could almost have been designed for organisations looking to cut costs without cutting back on their ability to innovate or scale.

Cloud computing allows organisations to streamline resources while retaining complete control over information resources. In this respect, the economic climate has been a catalyst for the growth in on-demand software, virtualisation, mobile technologies and infrastructure services, exposing some of the more negative, restrictive aspects of traditional outsourcing arrangements.

The complex contractual arrangements often associated with traditional outsourcing are in stark contrast to the flexibility of on-demand IT. Need more resources? Turn it up. Need less? No problem, scale back knowing that, should things improve next week, you can crank things up a few notches again.

This utility model has driven austerity-friendly pay-as-you-go payment structures. Because users can scale on demand, there’s no concern that you’re over-investing in a project that might not work. Costs per user, per instance are visible upfront, with no surprises. Watertight SLAs combined with technology that can be rolled-out on demand make it relatively easy for businesses to show their dissatisfaction with a provider by simply taking their business elsewhere with minimal disruption.

Cloud is re-defining the way businesses innovate and operate, giving them the freedom to experiment without the risks.

In this environment, outsourcing is a critical enabler of success. Experienced innovation firms use proven methods and tools to produce those crucial early-stage results, while also injecting the DNA of innovation process into the organization. Typically this outsourcing takes projects can range from R&D and engineering work, product and/or industrial design, to innovation process design.

Our company RenditionDigital International Ltd. has been providing the means for companies to achieve both  and scale based on demand without sacrificing risks involved. A proven track record with some the largest companies worldwide we can help you achieve both. For additional information click work with jay??

Why “Middle Managers” Are Critical for BPO Companies

There is a commonly held misconception that “middle managers” can cost companies both money and efficiency.  However, in the business process outsourcing industry, this statement couldn’t be any farther from the truth.

When it comes to business process outsourcing Philippines, these middle managers are essentially the glue that keeps the entire organization together.  Without them, fundamental processes would fall apart, and the company would be left afloat in very dangerous waters.  Here are several reasons why middle management is such an integral piece of Philippines business process outsourcing:

Internal and External Communication

In a business process outsourcing company, middle managers are the ones who communicate externally, typically with customers and suppliers.  In addition, the middle managers are the ones who communicate internally with members of senior management.  This means that middle managers essentially bridge an important gap in business process outsourcing companies.  They know what’s happening inside and outside the company.  In Philippines business process outsourcing, this could mean that answers to critical problems exist in the hands of middle management.

A Diverse Skill Set

Middle managers possess a wealth of diverse skills that make up part of the glue that holds business process outsourcing companies together.  One of the key skills they often use is virtual management, which involves working remotely with teams of people across the globe.  This means middle managers are experts at using technology to collaborate and achieve a common goal.  Without the know-how of middle management to apply technology in a team-oriented environment, the cohesiveness in Philippines business process outsourcing would not exist.  Other skills that middle managers excel in include cultural awareness and sensitivity, multitasking, trouble-shooting, and change implementation.

The Future of the Organization

Middle managers serve as leaders and mentors for the employees working under them.  They are essentially responsible for building the next generation of management in the company. Business process outsourcing Philippines will continue to grow at an exponential rate, and it is important to have excellent middle managers in place to foster the development of upcoming players in the game.

With middle managers taking on the responsibility of communicating externally and internally, exercising a diverse skill set, and training the future leaders of the organization, it is clear that these employees are integral to the advancement of Philippines business process outsourcing.  No organization would be successful without the presence of strong middle management.  There is simply no way to accomplish business process outsourcing Philippines without them in place.

Read the full article at trybpo.com
Disclaimer:

Bug-eyed Updates/blog selects the best publications from across the globe that have a specific focus on games market intelligence and investments. We always mention the source and link directly to the original article and aim to mention the author. If you have any objections to a repost of your article or believe you have a publication that should be included, please contact me at cal3b00[@]gmail.com. or ratohnhaketon@icloud.com

Virtual Outsourcing vs. Traditional Outsourcing Providers

About a decade has past and there was a time where, an IT service provider could feel confident marketing itself based on two strengths—process expertise and scale. But in an age of cloud computing, virtualization and automation, staff size may no longer matter.

Even as HP’s fate once it sheds 27,000 employees is still up in the air, the headcount required to staff a successful outsourcing engagement is most certainly decreasing. And the days of outsourcing-related layoffs and the “lift and shift” of the remaining labor force to a third-party provider aren’t likely to return.

“The number of resources that a provider has on staff used to mean a lot more than it does today. The average outsourcing deal size is decreasing, while the number of deals continues to increase. The market is starting to realize that it is about engaging the provider with the best overall value proposition, as opposed to the biggest—or cheapest—provider.”

In today’s buyers outsourcing market, it’s outsourcing customers that may be driving this change. “Buyers are two steps beyond reducing headcount, while interested in a more efficient and effective service delivery, [they] are now seeking transformation.”

Someday “your mess for less” may be supplanted by “our processes, your people,” as customers seek out providers who can transfer their expertise and methodologies to the client’s existing IT staff. Where outsourcing providers used to say, “tell me what you do and I’ll do it (for you), or, better yet, give me your people so we can limit operational risk. The new approach is, I’ll tell you what is best and you tell me [whether or not it will] work. This new dynamic brings outsourcing relationships to a more advanced state.

The most mature providers are already pushing the ‘virtual outsourcing’ value proposition to their clients. Staff transfer is not a differentiating capability for the IT majors.

Indeed, most providers will resist taking on client staff today. Providers now have plenty of people and equipment so they are usually not interested in a transfer. When we see that these days (particularly in it deals), it is more of an accommodation than something that the provider needs in order to perform. And it’s one that comes at a premium.

In the application development and maintenance space-where labor arbitrage had been the big driver behind outsourcing-price is becoming less of a differentiating factor. And “with the advent of platform-as-a-service (offerings), buyers can now manage their own code-and staff-to build customer solutions. Providers are simply passing on the capability.

In the end, the extent to which a provider offers or simply transfers knowledge, service, and value to a client is highly dependent on the buyer’s IT and IT services maturity.”

Provider’s are pushing [virtual outsourcing] as one possible strategy, but we don’t see [many] customers ready to move forward with it. That could change in the future, but widespread acceptance of that model would take several years. These things aren’t yet happening in practice even if this is where we want to go.”

Five Things to Remember When Negotiating an Outsourcing Agreement

How can an organization meet the objectives of an outsourcing contract negotiation? I’ve identified five things to consider that can potentially keep you from conducting a successful outsourcing contract negotiation:
  •  Statement of Work – A Statement of Work (SOW) describes in great detail the services to be performed by the provider and also clarifies certain client responsibilities.
  • Service Levels – Service levels work in conjunction with the SOW to scope the services that the provider will deliver.  They describe how much and to what extent the services described in the SOW are delivered.
  • Termination Language – Termination language is analogous to a prenuptial agreement; just in case things do not work out as originally intended and can be manipulated towards the end of an outsourcing contract negotiation in order to get preferred price.
  • Future Pricing – IT costs should go down over time due to improvements in hardware and software functionality and pricing, labor arbitrage, automation, and so forth.  Because each situation is different, there are no easy “rules of thumb” to apply, but pay close attention to these specific areas:
    •   Year-over-Year Pricing
    •   Cost of Living Allowance (COLA)
    •   Variance Pricing
  • Delivery Locations – A provider may want to include the freedom to deliver whatever location they see fit in an outsourcing contract negotiation. Due to the risk of potential business impact, buyers should have approval prior to the movement of support functions.

“These areas of the agreement, if not carefully structured, can drain value from your business case and decrease the probability of having a successful and sustainable outsourcing negotiation. Due to the variations and complexity inherent in each deal you should strongly consider the use of an outside outsourcing advisor to help. Because they understand your perspective as well as the providers’ point of view, they are ideally positioned to help manage through these items and develop an outsourcing agreement that works well for both you and the provider.”

Outsourcing vs. Establishing Captive Facilities Offshore

The choice between outsourcing or operating a captive facility for call center services, non-voice customer Learn how 3D interactive characters fundamentally change the way users interact with a site. services and back office processing, offers advantages for both approaches. Here we examine the advantages of outsourcing and two principal strategies for outsourcing. In an upcoming article, the advantages of establishing a captive facility will be detailed.

There are two principal strategies being pursued for outsourcing: strategic and market-driven outsourcing. Strategic outsourcing is addressed first because it does not lend itself to the establishment of captive offshore operations as easily as market-driven outsourcing.

Strategic Outsourcing

Strategic outsourcing aims to redirect an organization’s resources to focus on its core competencies. Core competencies for some organizations consist largely of strategic planning, brand management and project management.

Strategic outsourcing enables organizations to quickly change course, enter new markets and access new technologies. Strategic outsourcing focuses on results. Market-driven outsourcing is often more process oriented, with greater attention paid to how results are achieved.

Strategic outsourcing often involves large projects or indefinite quantity contracts (ICQs), managed by a primary outsourcing service provider and supported by smaller specialty firms that serve as subcontractors. Administrative fees charged by a prime contractor for passing funds through to subcontractors often range from 25 percent to 35 percent. In comparison, brokers generally charge a 5 percent commission for placing outbound voice work and 10 percent for inbound customer service contracts.

Strategic outsourcing lends itself to process redesign and organizational transformation, but not to the relatively long-term, more capital-intensive tactic of establishing captive offshore facilities. Market-driven outsourcing, in contrast, can serve as a stepping stone to establishing a captive operation offshore.

Market driven outsourcing enables buyers to gain familiarity with a location before deciding whether to commit to setting up their own operations there. Familiarity is no guarantee that a captive operation will be successful, as Apple (Nasdaq: AAPL) demonstrated by pulling the plug on its captive operation in Bangalore on May 29.

Market-Driven Outsourcing

The key variables in market-driven outsourcing are the capabilities and prices of available service providers. The decision to outsource is often based on short-term cost savings from using qualified talent pools and cheaper infrastructure in offshore locations.

The direct costs and levels of effort required for project management of market-driven outsourcing projects are usually greater than for strategic outsourcing ones. Full support of project management activities in market-driven outsourcing projects lowers the risks and total costs of running these programs offshore.

Customer service outsourcing from the U.S. and Europe during the years 2000 through 2006 has often not been highly cost-sensitive for large projects, due in part to the administrative challenges that buyers face in undertaking their first major round of offshore outsourcing. In offshore outsourcing version 1.0, half a buyer’s payments for offshore services are often applied to service providers’ administrative expenses, profits and marketing costs.

In outsourcing version 2.0, large buyers of outsourcing services are increasingly seeking a multi-source approach that enables their outsourcing efforts to be more market driven. Buyers are building up internal capabilities for managing outsourcing projects executed by smaller, cheaper vendors. Whereas outsourcing 1.0 vendors present themselves as capable of handling anything and everything, the new generation of outsourcing 2.0 firms often need institution-building assistance before launching a program.

In outsourcing 1.0, service providers help buyers with institution building. In outsourcing 2.0, buyers are showing greater sophistication and a stronger interest in achieving better value for money. This makes it more likely that buyers will consider the cost effectiveness of establishing stand-alone operations overseas.

Characteristics of Captive Operations

Whereas outsourcing entails having a third party perform tasks, captive facilities are established by a parent company to perform its own tasks.

  • Captive operations can be commercialized, as GE did in India by founding Gecis Global and spinning it off on Dec. 30, 2004. GE retained a 40 percent equity stake in Gecis, subsequently renamed “Genpact.”
  • Captive operations can utilize service level agreements (SLAs), metrics and reporting systems along the same lines as those used in commercial outsourcing arrangements. The best types of processes to initially send offshore are often those that are the easiest to measure. Once initial successes have been achieved and management systems stabilized, tasks that are unique or less suitable to intensive metrics analysis can be considered, such as research tasks, content generation projects and those associated with knowledge process outsourcing or KPO.
  • Cost projections for captive facilities can borrow data from commercial outsourcing facilities. However, in-depth cost analysis at commercial facilities can be difficult in areas where IT and IT-enabled services (ITeS) businesses are given major tax breaks (primarily India). The difficulty emerges because of internal cross-subsidization. The expenses of tax-exempt business units may be inflated or paid by non-exempt units, thereby increasing the amount of income that can be declared tax free.

 

Reasons to Retain Outsourcing 1.0 Arrangements

Traditional wisdom has held that outsourcing a call center program for longer than three years is more expensive than running a captive operation. This equation does not hold up in India and Pakistan, where locally owned facilities are capable of maintaining lower operating costs and lower profit margins indefinitely. The equation is likely to hold true for Western-owned merchant facilities in India and large Indian-owned call center companies, which charge more than their mid-size domestic offshore counterparts.

 

There are good reasons for U.S. companies to select large, relatively expensive U.S. providers. The principal reason is the weak offshore project management capacities that large U.S. outsourcing clients are faced with internally. They may not be able to recruit and manage their own staff to build up the institutional capacity of an experienced big-name outsourcing outfit to accept and run a large program properly and quickly.

Customer service and some back-office operations can be so critical to a company’s image and brand integrity that it is worth paying premium rates in order to minimize risks. The best choice for risk minimization is usually made by trusting an experienced market leader, despite the higher prices levied by the major firms. Higher prices pay off for many buyers because of both the reduced risks and the reduced level of effort it requires to provide such operations within a buyer’s organization.

Large-scale disapproval of outsourcing or offshoring among the majority of a U.S. company’s staff can translate into reduced capabilities to implement a project properly, whether or not it results in job losses. Reluctance of U.S. personnel to assist in an outsourcing process can range from open hostility to overt non-cooperation and intentional bungling of an outsourcing project. By bringing in an experienced outside team, an outsourcing client can lower the risks of project failure and help ensure a satisfactory result.

Advantages of Outsourcing

 

  • Outsourcing requires little capital to establish. However, significant spending is needed for onsite training and monitoring — even in simple programs.
  • Outsourcing contracts can include provisions for hiring out local staff in the event that a client decides to establish their own operation. Personal ties and the investments in training that a client makes during an outsourcing project are resources that can be retained once a commitment has been made to establish a captive facility.
  • Outsourcing to a facility overseas shifts the risk for site selection, government permits, tax compliance, personnel recruiting, technology Discover Proven Strategies to Improve the Security of Your Products. Free Whitepaper. deployment and cost control. Establishing a captive facility brings those risks back in-house.
  • Western firms in India are often overcharged for non-IT inputs in comparison with local businesses, and are also vulnerable to extortion attempts. The extent of overcharging is often keyed to perceptions of ability to pay. Corruption in India is not limited to the public sector or to Indian nationals, and is not an easy topic to discuss, except to say that outsourcing to a reputable vendor often removes these risks.

Is Outsourcing For Small/Medium Size Companies?

As a business, you’ve probably encountered suggestions for outsourcing solutions. Outsourcing solutions covers parts of your operation to the extent that it would have you thinking about outsourcing everything you need. In theory, you can do that. But just because a lot of businesses are trumpeting the benefits of outsourcing does not mean that you should automatically follow. Should you leave talent management, for instance, to an outsourced company? It would be best to consider the benefits of outsourcing first before making a decision.

Focus On Your Business

Letting you focus on your core activities when a company expands, so will all other aspects of it. If you don’t have enough resources, you will end up having to compromise in certain areas, compromising the growth of your company in general because you can’t keep up with all the demands. Outsourcing certain areas of your business will leave your resources intact so you can divert them into areas that really matter, such as the core activities that gave you the capability to expand in the first place. You can’t do without back-office services so simply letting others handle those services for you will resolve a lot of problems you might be having.

Allows for Quick Growth

Letting you become more efficient as your business grows, you will need to increase back-office functions as well in order to cope. However, keeping up with those back-office functions may end up derailing your growth because of the upkeep. For example, an expanding doctor’s office will get a lot more patients if more insurance plans are accepted. However, there are different insurance providers and a million terms and conditions to keep up with and for an ordinary office assistant, this can be overwhelming. Opting to outsource the medical billing portion of the business will help the doctor streamline his services and become more efficient in the overall. Efficiency also turns to savings in the long run because you don’t end up wasting resources for various activities.

Decreases HR Overhead Costs

Letting you reduce overhead costs as you grow, so will your needs. Unfortunately, catering to these needs can be costly. Consider this example as to how outsourcing solutions can help you: Growing as a business means you will need a bigger office. But office space is expensive. Outsourcing some of the back-office functions you have will eliminate the need for more office space because those functions you outsourced no longer have to be performed in your office. Not needing more office space will then let you stick to your old costs (letting you save by default) while still getting all the back-office functions you need.

Let’s You Be Proactive Rather Than Reactive

Staffing flexibility there are certain functions in your business that are cyclical or seasonal in demand. Hence, you only need people to work for you for certain periods of time. Having to bring in an employee just to cover the spike can be tedious and will waste precious resources because your resources are being diverted to the employment process instead of the job you just need done. Outsourcing will let you skip out on all the hassle by going straight to having the job done. And the sooner the job is done, the sooner your business will benefit from it.