Outsourcing is the practice of using an outside firm to handle
work that might otherwise be performed within a company. Small
companies often outsource tasks and technology such as payroll
processing, accounting, human resources, training, computer
data center, product distribution, legal, compliance and audit,
and many other important functions. Many large companies also
turn to outsourcing, frequently to cut costs, gain access
to specialized expertise, or to allow them to focus on core
competencies. In response, entire industries have evolved
to serve companies' outsourcing needs.
There are a number of benefits of outsourcing, in addition
to reducing costs.
Control capital expenditure. Saving money may not
be the only reason to outsource, but it's certainly a major
factor. Outsourcing converts fixed costs into variable costs,
releases capital for investment elsewhere in your business,
and allows you to avoid large expenditures in the early stages
of your business. And outsourcing may enable you to direct
more of your capital into revenue-generating activities.
efficiency. Companies that try to do everything themselves
often have much higher expenses, slower response times, and
can find themselves spending too much energy and 'mind share'
on peripheral tasks. An outside provider's existing infrastructure
and economies of scale can give your organization an important
Reduce labor costs. Hiring and training staff for
short-term or one-time projects can be very expensive; and
temporary employees don't always measure up to needs and expectations.
Outsourcing lets you focus your human resources and talent
where you need them most.
Start new projects quickly. A good outsourcing firm
has the resources to start a project right away. Handling
the same project in-house might take weeks or months to research
and evaluate options, purchase and install equipment and technology,
hire the right people, train them, and provide support to
everyone involved. And if a project requires major capital
investments (such as purchasing and installing computer hardware
and software, or developing software systems internally),
then the startup process can be even more difficult.
Focus on your core business. Every business has limited
resources, and every manager has limited time and attention.
Outsourcing can help your business avoid shifting its focus
to peripheral, non-core activities, and instead maintain focus
on core competencies, your areas of expertise and specialty,
and the work that serves your customers most.
Level the playing field. Most small businesses and
individuals can't afford to match the in-house support services
and infrastructure that larger companies - or companies dedicated
to providing a specific service - maintain. Outsourcing can
help small businesses act 'big' by giving them access to similar
economies of scale, efficiency and expertise that large companies
Reduce risk. 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 much of this risk
for you, and they generally are much better at deciding how
to avoid risk in their areas of expertise.
Hostedware Outsourcing Options
If you are considering outsourcing a survey, testing or assessment
project, or an entire research or e-learning business system,
Hostedware can help you where you need it. From personal help
with your projects to completely outsourcing of research and
testing systems, Hostedware has the products and services
you need to get up and running quickly, maximize effectiveness,
save money, and allow you to focus your resources where you
need them most.
to learn more about our wide range of attractive options.
Custom quotes can be developed to meet your exact requirements