Thursday, September 30, 2010

The Benefits Of Outsourcing

To be competitive, many companies are already utilizing their workforce to the maximum levels. This stream of constant manufacturing leaves little area for expansion and injects fatigue over the workforce. In an effort to increase manufacturing, a company can outsource portions of the needed work or tasks to a smaller more focused group of individuals who can provide an accurate and easier outcome.

By Steve Duval

The concept of outsourcing has erupted in popularity in the 21st century. Many corporations and small businesses reap the advantages of outsourcing their manufacturing or production needs to maintain their competitive edge. As employment in many countries contracts, there are people who look at the benefits of outsourcing as damaging to an economy.

The main argument is reducing the labor costs involved in producing goods or services. On the surface, American employees view outsourcing as a threat to their own jobs. However, this argument is easily overshadowed by the many benefits of outsourcing in today’s economy.

1. Increased Manufacturing

To be competitive, many companies are already utilizing their workforce to the maximum levels. This stream of constant manufacturing leaves little area for expansion and injects fatigue over the workforce. In an effort to increase manufacturing, a company can outsource portions of the needed work or tasks to a smaller more focused group of individuals who can provide an accurate and easier outcome.

2. Continued Innovation

Many businesses focus too much on the task at hand rather than updating their information or procedures. Technology constantly expands and is perfected in other areas of the world. Companies can become more innovative and learn new techniques for improving their tasks and output from new specialists acquired by outsourcing.

3. Focused Control

Fewer employees is not a bad thing. In fact, it is easier to focus on each section of the process, because there are less chances of failure or defects. Many companies must wade through a tangled area of management to solve even simple problems. Having a higher degree of focus can increase production, marketing and profits.

4. Low Expansion Costs

No construction or building contracts are required. There is no need to hire a new department or setup expensive equipment. A company can save thousands of dollars by expanding into outsourcing.

5. Lower Costs; Higher Profits

Companies can benefit from workers who live in under developed economies. If manufacturing costs are reduced, companies will receive higher profits. A benefit to this method is the range of highly skilled workers in other areas of the world who are available for immediate work.

6. Fast Turnaround and Reduced Risk

Due to time zone differences throughout the world, work can still be completed when your company is closed for the day. This method consistently increases output and achieves a faster turnaround. The specialization of a diverse workforce can improve manufacturing, company culture and business relationships. The risks are extremely reduced when work is outsourced. Projects can be started immediately without the need for training new employees or negotiating expert salaries.

7. Lower Consumer Cost

Consumers will benefit from this method of manufacturing and production. Typically, when a company can lower it’s cost to produce goods or services the cost savings are passed directly to the consumer. This provides an increase in sales for the company and a lower cost for consumers in and out of an economic downturn.

In conclusion, outsourcing is a fantastic way for any business to compete in the global future.

Steve Duval is an internet entrepreneur who is showing others the many ways of making money online today. He teaches simple techniques that anyone can use to earn money online http://www.expressincomes.com

2 comments:

  1. I know Southern California Edison outsources programming duties to about 1,000 IT pros in India. As the SCE's president told me, in LA they work on code during the day, send it to india to clean up, and get it back the next morning. He also said he doesn't believe outsourcing hurts the U.S. economy.

    ReplyDelete
  2. Good chapter on the benefits of outsourcing online: http://www.outsource2documaker.com/wp/tux

    ReplyDelete