Guest Post

Small Business Finance – Lowering Costs Through Outsourcing

In today’s world, businesses strive to look for new ways of cutting their costs. Small businesses, in particular, are required to do so if they want to survive their organization’s first few years. In many instances, these businesses consider outsourcing as the best option for successful cost-cutting.

Lowering IT expenses through outsourcing tasks to foreign countries like India is a tested and proven technique and has been practiced for quite some time now. Reduced costs are perhaps the principal benefit of offshore IT outsourcing. You can get business operations and tasks completed at a fraction of the cost that you would have spent from local manpower. Due to the differences in income and standard of living that exist between Western and Asian countries, the cost of labour in Asia is significantly lower. Usually, you can anticipate around 60% cost savings if you outsource IT operations to countries, such as India.

Aside from IT, small businesses are also outsourcing responsibilities of protecting vital and confidential business information and getting rid of what can be shredded either in-house or offsite. Through outsourcing such tasks, you are able to store your information through a remote secure database facility.

By outsourcing tasks to other countries, you also get broader access to more skilled labourers. Searching for manpower locally limits you to the skilled expertise of true professionals Through outsourcing, a company is freed from the troubles through rendering access to expert resources at reduced expenses. This comes with the added benefit of not having to take care of the responsibilities yourself.

Due to the time zone difference between Western and Asian countries, you can get your work completed while your organization closes up from business hours during the evening. This is particularly advantageous for firms in the service industry that have to offer 24-hour customer support.

As a small business grows and expands, administrative applications relatively grow with it. Facilitating back-office tasks and administrative applications deplete the organization’s valued resources. With outsourcing, small businesses are freed from having to facilitate non-core applications and put more of their attention and resources to core competencies.

The process of outsourcing for small businesses also optimizes productivity and work efficiency. If your enterprise objectives are appropriately aligned with outsourcing results, work efficiency and productivity are bound to improve in significant levels. Outsourcing your inventory management to a company that can oversee your inventory and shipping will greatly help to increase your efficiency.  This will allow you to ensure that all products are sold at their appropriate price point and shipped efficiently allowing you to focus on the many other aspects of your business.

Now, what tasks can you outsource to foreign countries like India? Small businesses can outsource tasks and operations related to software development, IT, website design and development, construction and extraction, sales, and administrative tasks.

Robert Dean has worked in the paper shredding business for several years and believes that outsourcing certain tasks could be beneficial for small businesses. He currently works for The Shredding Alliance.

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