4 W’s in Outsourcing for First Time Investors

For some, there comes a time when they decide to venture in to business and be an entrepreneur. Most of these business starters’ goals are to grow and expand. However, other businesses regardless of their size are neither different. What makes them move forward however, is their ability to expand their business in a less […]

For some, there comes a time when they decide to venture in to business and be an entrepreneur. Most of these business starters’ goals are to grow and expand. However, other businesses regardless of their size are neither different.

What makes them move forward however, is their ability to expand their business in a less given time; backed with cost effective strategy, sustainable business profit and effective management. Though as an initial investor, it’s understandable that such growth doesn’t happen overnight and many challenges may appear forefront. They are usually constrained by the level of their material, financial, and intellectual capital. In addition to their time availability, that often stalls the growth of their investments.

Why?

When it happens that you are one of these starting entrepreneurs which face the same common dilemma, it is necessary that as you run almost all parts of the role in your business.  However, you have to remember that simply you can’t do it all your own.  As Adam Smith’s centurial theory towards utilitarianism and division of labor reminds you, your efficiency necessarily lies upon your ability to effectively delegate task to those whom already have enough skills of specialization. The reality now shows that the more tasks you do on your own, the lesser work you’ve accomplished. Even given your personal peripherals, this results in making you less efficient.

As outsourcing enables investors to focus on running their businesses, it is no wonder why many big firms have been employing it for years. It has already become an integral part of their business strategy. Small and medium enterprises have proven to be one of the top beneficiaries of the rising trend in outsourcing and staff leasing services.

What?

After answering why outsource services, you may ask what type of support you want to farm out. Initially just before doing anything else, you need to carefully assess the nature, potency and principles of your business. Remember that almost all services can now be outsourced but it doesn’t mean that it always should. Certain functions that ought to be insignificant might actually be essential.  By identifying your key competency you’ll be able to figure out which are necessary versus those that are redundant.

A good example would be instead of hiring an entire panel of professionals to do tasks like payroll administration or human resources; as an entrepreneur you can outsource a company that provides staff leasing services to do certain work you require. And if it’s necessary, you can further outsource highly skilled and expert individuals in specific fields to provide consultancy and improve the quality your business.

When?

In deciding the perfect timing of when to outsource, you have to be well aware of the services that can be done during productive hours. If it happens that clearly such tasks aren’t essential in terms of your profit generation, requires specialized skill set, is recurring and costly for long term then it might be recommendable to seek for companies that provide services fit for your requirement.

Where?

Knowing where to outsource is substantial, especially when you already have a predetermined market. As developing countries nowadays provides competency at a friendly budget, taking your partnership offshore is more cost effective. India has been a viable destination for IT services due to:

  • pool of highly skilled professionals
  • system support that is available 24/7
  • low wages

Meanwhile, cultural relativity and a highly educated staff that is willing to render services at an affordable price help businesses that require English speaking customer representative partners with companies that offer staff leasing services. This is why these companies often choose to outsource to the Philippines.

Leave a Reply

Your email address will not be published. Required fields are marked *