Outsourcing

SUMMARY
Outsourcing,
Benefits for Small Businesses

The article defines “outsourcing “ as “the practice of using outside firms to handle work normally performed within a company” (whether the comapany is big or small on their income). Usually the big businesses use outsouring to save money, while the small businesses use it because they can verly keep up with other debts, they also have to worry about: processing, accounting and distribution.

Truth is, it does not only help the small industries , it can be very useful. People assume that it saves money and that is it. They do not really take the time to considere the other advanteges that come along with outsourcing. By outsourcing you:
-Control capital costs ( mainly it avoids expenditures in the early stages of your business, which makes your firm attractive to the market.)
-Increases efficency (competitive advantage)
-Reduce labor costs ( you can focus your resources where they are needed the most)
-Start new proyects quickly (your company grows and develops faster with more income)
-Focus on your core business ( outsourcing helps you shift your focus)
-Level the playing field (it gives a competitive chance to the small firms vs. The big firms. )
-Reduce risk ( a better management of risks)

It’s not only about the cheaper stuff, all this advantages help the small firms “survive” the rocky start.

Source : The benefits of outsouring for small businesses , obtained on Feb. 1 2009 , http://www.allbusiness.com/human-resources/workforce-management-hiring/1084-1.html

BY: LAURA GARCÍA



Outsourcing, good or bad?
Chris M Evans (Storage Consultant) posted 4/19/2004
Summary: Well, basically the article says that Insourced companies have a certain focus on delivery quality within the restrains of the budget provided by other financial companies and this becomes a problem when the financial failure is high. On the other hand, Outsourced companies also look for a high quality of their services however they do have a big budget which let them work within the terms they need to. So this can lead companies to try working outside the contract looking for tight costs, which at the end of the day it can actually be a mistake because they will have to face extra and unexpected costs. In addition, the work environment isn’t very favorable because of the quality of the offices, PC equipment and so on.

Source : http://it.toolbox.com/blogs/storage-consultant/outsourcing-good-or-bad-748

BY. CARLA MILLÁN