Smart Resourcing for Growing Businesses .pdf
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Smart Resourcing for Growing
In every decision, there is always a need to analyze things.
There are always two sides; the advantages and disadvantages.
Probably, one of the most popular words today is outsourcing.
Outsourcing is the process of contracting with other companies
to do certain jobs for you. Many business owners, especially the
large ones, opt for outsourcing services. Even so, there are also
outsourcing pros and cons.
There is no denying that outsourcing has its own list of benefits.
After all, that is the reason why most business owners do it.
Outsourcing can reduce overhead costs. More workload means
more employees. More employees mean an extension of the
workplace or an increase of wages for the in-house employees
assigned to do the job. The expenditure would be lesser if you
let a third party do the tasks.
Another benefit is the refocusing on the core activities of the
company. As it grows bigger, more and more tasks and jobs are
added and the company gradually veers away from doing the
core activities properly. To solve this problem, outsource those
tasks that are of non-core value so the company can focus on
things which they are supposed to do and what the company is
all about. This allows more concentration on both core and
Through outsourcing, you get to access specialized services.
There will always be tasks that is not of core competency of
your company but there will always be outsourcing partners
who are highly specialized in that particular business process.
Your outsourcing service can deliver you more proficient
service. The logic is, if you do all the jobs in-house, you will get
the job done but not at its best. But with outsourcing, lessen
your activities and work in focus of heavier tasks while
outsourcers focus on the lighter ones.
As stated, there will always be outsourcing pros and cons. As
much as outsourcing is an advantage to business owners, it also
The most obvious disadvantage of outsourcing is the loss of
managerial control. Remember that when you outsource a task
of a single or a whole department in your office, you give the
management and control to another company. Yes, you may
have a contract, but the management and control already
belongs to another company.
What keeps companies alive is the information that they keep.
Once you decide to outsource tasks, the confidentiality of your
information is already at risk. Evaluate first the outsourcing
company you are trying to contract with. There are companies
which function involves sharing of company data and
knowledge. Make sure that your data is protected and the
contract states any penalty if a leakage occurs.
Another disadvantage is the quality. Your outsourcing contract
is set to have a fixed price. The only way for the outsourcing
company to increase profit is to decrease expenses. As long as
they meet the conditions of the contract, you will pay. This puts
the quality of work at risk. The contract will be very specific and
you will pay extra for changes.
Potentiam can increase your resources, improve your
productivity and cut your costs all at the same time. They can
offer their clients between 40%-70% savings on salaries
depending on the type of position you are looking for.
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