With the successful integration of internet marketing into the business development of companies, another business model has taken shape - and that is outsourcing

1. The Important Elements of Outsourcing
The dot-com boom has opened the gateway for businesses to explore the growth potential of using the internet in
generating leads. With the successful integration of internet marketing into the business development of companies,
another business model has taken shape - and that is outsourcing.
The early days of outsourcing made some firms feel intimidated and quite unsure about the efficiency of this newfound
system. Today, this business model has matured and became a major part of many businesses. Traditional businesses
perform their operations in-house, while modern and internet-driven enterprises hire third party service providers to do
the job. Outsourcing may have evolved over time, but the basic elements to consider have stayed the same. Below are
the key variables of outsourcing:
 Compensation
 Resources and infrastructure
 Division of labor
 Project timeline
 Number of employees
Companies outsource their business processes to streamline operational costs. That is why this is one of the most
important elements that need to be discussed by the client company and third party service provider. It must be
balanced, wherein the client can save on costs through labor arbitrage while the provider earns a fair and decent
amount.
In order to meet the requirements of the client company, the service provider must have the necessary tools and
equipment. This should be clarified between the two parties - whether the client company does not need to hire full-
time employees for the project or the service provider will handle or manage everything including recruitment and PC
upgrades.
Knowing the responsibilities of each party is also crucial so the process will run smoothly and to establish a long-lasting
outsourcing relationship. Will the client company control the entire operation? Will they give the third party service
provider freedom to decide on how to get things done? Both parties have differences in management styles, and things
like this should be dealt with in the outsourcing proposal phase.
Every outsourcing project has a goal, and meeting that goal within the set timeframe is essential. Both the client and
service provider have to agree on a project timeline, and the latter must ensure that they will be able to deliver on time.
MicroSourcing is an offshore outsourcing solutions provider based in Manila, Philippines. The company offers a wide
range of delivery models: project outsourcing, offshore staff leasing, and virtual captives.