Scalability: Why Small Businesses Outsource
Mature industries like banking, pharmaceuticals and insurance have been outsourcing for decades – even before the term became popular. These verticals have standardized processes in their industries which enable them to easily scale – based on the economy and market conditions.
Because outsourcing has become available to small business owners and online professionals, you can now expect the same level of scalability, efficiency and cost savings that exists in other well-managed businesses that leverage outsourcing.
According to a report titled “Global Sourcing Trends in 2009” by U.S.-based law firm Morrison and Foerster: Most outsourcing transactions intend to produce immediate improvements to the bottom line for businesses. While this is a common reason to outsource, with fluctuating economic times like we have been experiencing lately, the flexibility to scale up or scale down (based on the business’s needs) has been the determining factor to outsource.
Smart executives are using outsourcing to build flexibility and scalability into their businesses—and to gain access to a global pool of skills at competitive cost.
The recent economic downturn led many companies, especially those who don’t have existing outsourcing contracts, to consider outsourcing. But companies who already have outsourcing agreements are re-evaluating their outsourcing decisions to find providers that offer more business continuity and integration.
In an environment where Fortune 500 companies have disappeared overnight, a successfully executed outsourcing partnership could make the difference in a company’s ability to ride out these challenging times. The flexibility to bring on needed help and expertise in times of growth – without committing to a project contract or adding people to the payroll, has been an invaluable solution to the small business owner and online professional. In addition to providing scalability, this also allows the owner to focus on core competencies of the business.
Outsourcing provides businesses with instant scalability and service flexibility, as well as reducing overhead costs. One of the major advantages of outsourcing is that companies can now get the best from new developments without the expense.
In terms of new technologies, new processes and new ways of doing things, you don’t have to invest to do that in-house. Outsourcing is also particularly beneficial for new businesses, or those looking to expand their operation. This includes those who do not necessarily know what hardware or software they will need.
Outsourcing providers with more experience should be able to advise companies about where to spend their money, so that they do not waste time and resources.
Any hesitation to outsource may be affecting your company’s chances to effectively scale for growth in this highly competitive business environment. As a small business owner or online professional, carefully consider your outsourcing partner when looking to expand your business and make it globally competitive. When considering a company for outsourcing, make certain that they are equipped to handle the ebb and flow needs of your business when scaling up, and when scaling down!
Help answer the question
How important are business ethics to a company and their success?
Discuss the ethical climate at a business that you are familiar with or one that you have researched. How have ethics affected this business? What does this business do to enforce ethical principles? What things could they do better?
How can we as individual employees influence the application of ethics are our businesses? Give your thoughts and ideas on this subject.
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This entry was posted on Sunday, December 13th, 2009 at 2:44 pm and is filed under business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
December 13th, 2009 at 3:29 pm
Hi,
i have found a site to be usefull, just check this out
December 13th, 2009 at 3:49 pm
You are so talented!
Keep it up!
December 13th, 2009 at 4:10 pm
You need to keep accurate records when running a business. This will be your best defense if you ever get audited.
For IRS purposes, you need to make a profit every 3 out of 5 years to have the IRS prove that you are not running a business. Otherwise, it is up to you to prove that you are running a business and not doing a hobby. You can prove that you are running a business by keeping your business accounts and personal accounts separate.
You can write off any legitimate business expense including dinners with clients, car expenses, equipment, etc.
Having a separate checking account and credit card is a good idea. However, it isn't necessary. You can comingle your business and personal expenses using your personal accounts. But, if you do this, then it will be harder for you to prove that you are running a business.
For your revenues, you don't need a corporate account to make you deposits. You just need to make the deposits in your separate account that you use for business.
You can read Publication 334 for more information.
December 13th, 2009 at 4:17 pm
Wow! He looks almost… alive O.O Awesome painting! Keep it up
December 14th, 2009 at 10:10 am
How about a book store, if you are looking retail?
I cant say if it would work in your town, you need to do marketing research to see what would succeed in your town.
Also in business .. Location, Location, Location is VERY important to success .. not only do you need the right business, you need the right location ..
Passion, YES .. you do have to work long hours but passion because you believe in what you are doing.
I work from home and have the utmost compassion and belief for what I do, I believe that is what brings me success ..
If you don't like books, don't like to read .. then a book store probably wont make sense. Did deep .. Only you know what you really want to do.
GL!
December 14th, 2009 at 3:14 pm
Are you asking the same question or was my answer deleted? YOU CANT COLLECT ONCE BANKRUPTCY IS FILED.
December 14th, 2009 at 8:43 pm
business school is the right field to study, if you choose your college carefully, some have an entrepreneurship track/program
December 14th, 2009 at 11:38 pm
You’re an amazing artist both painting and music wise. keep it up ^ ^
December 15th, 2009 at 12:01 am
Hiiiiiii..
I think you have to choose the Marketing section in Human Resource Management(HRM) because in marketing you get the nice job in the good reputed company on a high post..
December 15th, 2009 at 12:45 am
You can't post a Proposal for Sale of Business here. It is a comprehensive document similar to a business plan with dozens to hundreds of pages. Contact a broker like VR Business Brokers and see if you can get help. Yours is a unique business driven by personal contacts and is not easily sold.
December 15th, 2009 at 5:48 am
The requirements vary according to your state. Call the business license office for your county and just ask them if you need a business license to operate an internet store. I live in Georgia, and in my county, you do.
December 15th, 2009 at 7:13 pm
together we exist together we suffer and forever we will recreate each other…. i witnessed a very magical moment just now…. thank you.
Paris Lo in las vegas
December 16th, 2009 at 2:42 am
Yes, the courses you speak of will help you to become a Business Analyst.
A BA can be on the client side or the IT side. If on the client side, they are interfacing with work group domains that process the work and review what they need. They generate requirements and then work with the IT side to update or generate processes and applications to fullfil the business needs.
If you're a BA on the IT side of the house, then you're taking all the requirements and developing processes and application solutions. Your job is to work with the client to generate a business solutions document (there are many names for it) and get signoff. Then, you need to make sure that solution becomes reality by working with systems analysts, programmers, and testers. You're generally responsible for the delivery of the solution. Although, if the solution revolves around process changes with other work group domains, you normally work with a PM (Project Manager). Never the less, you have end to end responsibilities for the IT delivery to insure the client gets what they need (and paying for).
With the offshoring of work to cheap labor, to remain associated with software development, the BA role is a good profession.
December 16th, 2009 at 7:19 am
I wasn’t sure, if this Johnny really is just a photo – he just looks too real. Keep up the beautiful work
The song was also fitting
December 16th, 2009 at 7:25 am
it’s almost like a photo
great painting 
December 16th, 2009 at 1:43 pm
dude, you own! this looks identical to a photograph
December 16th, 2009 at 3:56 pm
this was so awesome!!!! just perfect, the piano goes well along the video, tx 5**
December 16th, 2009 at 10:55 pm
That’s amazing! It always seem easier to draw on the computer then on paper. Really now, to color like that makes me curious, though everyone’s style of art is different.
May 13th, 2010 at 12:10 am
Wow, lots of spam here! Shame, as I did actually enjoy reading your post. Thanks