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Benefits Of Outsourcing For The Small Business

Outsourcing has greatly benefited the small business. One of the key benefits outsourcing is that businesses have the time to focus on their core competencies and in the long run save on human and capital resources. Outsourcing has made available valuable time that allows a business to focus on its core purpose. Usually, it is the tasks that are considered mundane or non-essential that are handed over to a competent 3rd party individual or company. The small business can then focus on the key areas of the business and thus overall productivity is greatly increased.

Small businesses that go for outsourcing have access to greater financial resources since this helps them cut down on operational costs. Budgets for such small enterprises are normally limited. The freed up cash can then be used to grow and market the business. Because more money is plowed back into processes that directly benefit the business small businesses are able to expand faster. This is one of the most important benefits outsourcing for the small enterprise.

Another benefit of outsourcing that small businesses enjoy is the ability to delegate duties to the persons most skilled in that given area. It therefore increases the quality of services provided by the business due to the expertise tapped into through outsourcing. This is probably most apparent in the IT department of an organization. With technology always changing, the small business that outsources can better keep abreast of the various technological advancements in the market. This is cost effective to the business since it does not have to spend money recruiting highly skilled staff or on training costs. Indeed, finding highly skilled labor is always one of the major handicaps of the small business since it can scarcely afford the salaries that the best persons in the market would demand.

When a process is outsourced, this headache is transferred to the outsource services provider. Since the service provider is an expert in their field, they can tap into cheap but skilled labor then train them internally for the job market. The outsource service provider then effectively resells the skills of these skilled personnel to the small business procuring their services. The service provider can thus relay the benefits outsourcing to the small business in the form of a cheap quote for performing a task that would have been expensive when done by the business’ own staff.

Daven Michaels Author of the book Outsource This!

14 Responses to “Benefits Of Outsourcing For The Small Business”

  1. Popi Moore says:

    Great piece of advise for those who are intending to go into outsourcing busienss. Popi

  2. MIMI says:

    I believe absolutely in the power of outsourcing. Fine piece Daven.

  3. liezel says:

    Very true…Outsourcing is really a great option for small and mid-sized businesses.

  4. Alexis Tan says:

    … Definitely … small businesses could have lots of benefits. because outsourcing can help small businesses on promoting their services…..

    This is Great………..!

  5. tina hebert says:

    this post is really helpful for those that are starting or planning to engage on outsourcing. It really shows what small business could have when it comes to outsourcing.

  6. james says:

    Indeed outsourcing has changed my outlook in just one year of trying it out. Good work Daven! James.

  7. jonathan says:

    this is just amazing! I can see outsourcing changing the face of business globally real soon. Jonathan

  8. caroline says:

    I really like the way you explain the benefits that a small business can get to outsourcing. Nice one!

  9. craig says:

    Great Post Daven!

  10. john says:

    good information for all those intending to go into the outsourcing business

  11. Lui says:

    My small online business has grown from one level to the next ever since I employed a few online staff.I wish others would embrace it too.

  12. R_M says:

    Nice one Daven!!this would a great help,looking forward for another one like this!!!

  13. nesie says:

    The resources on the internet are just awesome and hiring a good VA would really help to get all the information you want fast. I have tried it before, trust me it works.-Nesie

  14. Benefits Of Outsourcing For The Small Business « Outsourcing ……

    […]Outsourcing has greatly benefited the small business enterprise. One of the key benefits outsourcing is that businesses have the time to focus on their core competencies and in the long run save on human and capital resources. …[…]…

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