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SpinDistribute.com Article Directory

The following article was published in our article directory on January 18, 2010.
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Benefits of Business Outsourcing Process

Article Category: Business Management

Author Name: Lehman Hailey

The deepening penetration of the Internet across the world has led to explosive growth in online collaborations in recent years. The facility and convenience of online connections is driving the business outsourcing process. Entrepreneurs are constantly devising newer ways to outsource what they did by themselves so far. The motto seems to be: "what you can do yourself, there has to be someone else somewhere who can also do it still cheaper and better." No business – big or small – has remained unaffected by this ultra new business trend.

There are some basic reasons why businesses are attracted by the idea of outsourcing. Some are primarily driven by the cost savings – hiring employees necessarily implies providing them with working space and facilities, in addition to their salary packages. Freedom from worries of employee liabilities is another important motive working behind business outsourcing process. Aggressive businesses and dynamic entrepreneurs see outsourcing as a mechanism that provides them opportunity to focus energies on their core business activities – thus giving them the competitive edge.

If you are a solo entrepreneur, contract marketing experts to promote your merchandise will save you effort and time. Virtual assistants can perform all your clerical work sitting in their homes, and your business website can be created and maintained by more knowledgeable people than you. Customer and technical support is another convenient activity that gets outsourced. Most of the human resource functions like recruiting and training are now increasingly being outsourced, particularly by large companies. Market research and analysis is another task that is ideal for outsourcing.

To derive maximum benefits of business outsourcing process consider: "what are those activities that you or your employees alone should perform?" For instance, you may not like to share certain information or data with outsiders. Further think about the core activities that you have so far reserved for the company employees: "can some or any of these be outsourced?"

In recent years, small service providers in particular, are waking up to the idea of business outsourcing process. Winning an outsourced project (or task) is a one-time activity – relationship is over when the task is completed. When a process is outsourced (for instance, a database management), an ongoing relationship approach is required. It demands the vendor to be more closely familiar with the client's needs, and the client to provide ongoing feedback and necessary training to the vendor.

But there are certain issues inherent in the business outsourcing process that need careful attention: Off shore outsourcing has cultural and linguistic problems inherent in them. Loss of in-house business expertise is an important issue since you begin to rely on outside experts. There is always a fear of losing control on the manner of execution of the business process. The vendor may not be able to sustain the service for whatever reason – financial or management. The later two issues can be addressed only if the client sheds the role of a "hands-off" onlooker and takes an active role in supporting the vendor. Then the relationship acquires some colors of business partnership.

Keywords: outsourcing,business process outsourcing,business outsourcing experts,business outsourcing methods

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