Why Outsourcing is a Good Option for Home Business Owners

By Randall Orser | Small Business

Outsourcing Definition TNThere are those who frown upon the current trend of offshore outsourcing. In fact, in 2004, during a Strategic Research Institute conference, there were at least 7 workers’ organizations that rallied against offshore outsourcing in New York where the conference was being held (source: SearchCIO.com). Those who are against offshore outsourcing contend the practice deprives many American workers of job opportunities. They may like it or not, but it looks like outsourcing is here to stay because many businesses, especially home-based businesses, highly favor it. Outsourcing has proven itself to be a cost-effective strategy to get things done. There are three reasons why you would want to outsource your home business. For one, it is cheaper than hiring full time employees. Second, you do not have to go through the process of direct hiring and firing. And finally, you can take advantage of the expertise that is available overseas.

Cheaper Labour

Many home businesses are small-scale in operations. They cannot afford to pay staff working for them full-time. Yet, the home business owners usually find themselves swamped with work and realize that they do need help. Some manage to get part-time workers but salaries eat a big chunk off their profits. Now, it is a fact that wages are much lower in other countries compared to the pay range in North America. You too can get those foreign workers to work for you and still pay them based on their local rates. The BPO (business process outsourcing) industry is growing in many countries like India, Bangladesh, Pakistan, and the Philippines. They have several companies servicing American businesses.

Advantages of Outsourcing

Other than the lower labour expense, you can save money when you outsource your home business. You do not need to make additional investments on new furniture, computers and bigger office space just so you can accommodate workers. Instead, you get to use the facilities of the BPO vendor. Also, you pay them on a fee-for-service basis, which means that what you incur are variable costs instead of fixed expenses. You get to enjoy staffing flexibility with outsourcing. If your business has seasonal or cyclical ups and downs, you can easily get workers for the duration of the high demand and release them when you expect the demand to be low.

If you’ve been spending more time on your work than what you originally intended to, outsourcing some aspects of your home business will enable you to cut down your working hours. You can then have more free time to pursue other business opportunities. You can also reclaim the time that you should devote to your family and personal life. BPO vendors have developed the skills and competencies of their workers in various business processes. They are also continuously updating their knowledge and technology to keep abreast with competition. When you engage their services, you avail of their talents and expertise that in turn puts you ahead of your own competitors.

What You Can Outsource

You can outsource the business functions that you would delegate to employees if you were to hire. Review your list of regular tasks and note those that you can’t seem to find the time to work on even if they’re fairly easy. You may also want to outsource those repetitive tasks that you don’t enjoy doing. The most often outsourced jobs include customer care and sales support, which include responding to phone-in queries and complaints, telemarketing, order taking, and invoicing. Many home businesses also outsource their accounting functions, production, fulfillment of orders, website administration, and data entry, among others.

You really do not need to work harder than you have to and you should not miss out on orders because you’ve already reached the limit of what you can do on your own. Outsourcing some areas of your home business can be advantageous for you; it can increase your capacity without the hassles of actually hiring more people.

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