Benefits of Outsourcing for the Small Business

February 23rd, 2011

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.Outsourcing has made available valuable time that allows the 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 of 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 outsourcinghave access to greater financial resources since this helps them cut down on operational costs. Budgets for such small enterprises are normally tight and 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, such small businesses are able to expand faster. This is one of the most important benefits outsourcing for the small enterprise.

Another benefits 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 scarce 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.

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