Small Business Trends - The Pros and Cons of Outsourcing


(21-Dec-09) When businesses consider cutting costs in almost any area, often the first thing that comes to mind is outsourcing, particularly to overseas employees or consultants. It is understandable — especially in this economy — that companies want to reduce costs as much as possible and use fewer employees, but the decision to outsource should not be made lightly. Weighing the pros and cons, as well as considering factors other than cost savings, will help you determine whether outsourcing is the right option for your business.

A recent study from Info-Tech Research Group found that most companies outsource to gain access to specialized skills, which result in faster product delivery. Howard Kiewe, senior research analyst at Info-Tech Research Group, said another good reason to outsource is if a business needs to act quickly to take advantage of a market opportunity but doesn’t have the internal talent to respond. Other advantages of outsourcing include improved business processes and workflow, flexible staff allocation and the ability of internal staff to focus on other important business areas.

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