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Small business, Outsourcing and Globalization

Why Outsource: Part One

Over the last decade and a half one of the hot topics for discussion across the country and possibly world was: OUTSOURCING and its Global impact. Companies who were early adopters of technology realized the importance of globalization and its advantages. They realized that taking advantage of technology enabled services gave them a competitive edge, while saving money. Many times this came at the expense of small businesses.

While the larger companies pounced on this opportunity and used it to improve their competitive advantage the smaller guys were left behind. Small businesses have always outsourced, when they had other companies or individuals do their accounting, pay roll, benefits administration, marketing, web development, printing, data entry and so on. Outsourcing is not something they never did; it was never done this way. They never associated outsourcing as off shoring; an end result of globalization. It is time for small businesses to realize the opportunity, outsourcing, off shoring, globalization however you call it, and it has matured and is available to all.

Globalization is a movement, it is an opportunity and it is an economy on its own. As a company focused on finding solutions to challenges our clients face, we come across a myriad of requests and questions from small businesses. Most people associate outsourcing with cutting costs and so primary question that is asked is “how cheap can you do it”?

Why outsourcing is not just about cutting costs? If we say that outsourcing is not about cutting costs that would not be true. Yes, we need to make sure that there is a cost benefit associated. So the primary reason is always going to be:

  1. Cutting costs: Small Businesses who are looking to take cut costs either to keep their business running smooth in this tough economy or are looking to expand without increasing their capital costs.&nbsp
    There are several reasons why outsourcing is beneficial.
  2. Short projects: You have a project and you need to get it done without having to hire a group of people in-house.
  3. Need specific expertise: The project you have needs specific expertise and you do not have the needed expertise in-house.
  4. You need a quick resolution: This happens very often and outsourcing companies can help you with their manpower resources.
  5. Improving your internal efficiency: An outside company has economies of scale that will benefit your organization, while you focus on your core business model. A good outsourcing partner with a global reach can make this lucrative.
  6. You need to bring in a competitive edge in a saturated market: Global outsourcing can help you do that. Finding the right partner can give you this competitive edge that was once available only to larger companies.
  7. You want to expand but do not want to move away from your core business: This happens when you start growing your company, you need to grow the company but do not want your present working model to be disrupted.
  8. You are in a position to get a new project that is big and you need to expand quickly: This is a perfect outsourcing scenario. Do it with the right partner and benefit from their expertise.
  9. Think Big: You want to be able to think big in a competitive market. Outsourcing allows you to do that.

Whatever the reason might be, the days of large companies getting the competitive edge are over. Global outsourcing is available to all. Small businesses with an open thought process are benefiting from this trend. The growth will benefit globally and improve your business.

About Julie Clements

Julie Clements

Joined the MOS team in March of 2008. Julie Clements has background in the healthcare staffing arena; as well as 6 years as Director of Sales and Marketing at a 4 star resort. Julie was instrumental in the creation of the medical record review division (and new web site); and has especially grown this division along with data conversion of all kinds.