Reasons for small business outsourcing

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reasons to consider small business outsourcing as a small business owner. outsourcing options for the small business owner. why should small business owners consider outsourcing for their bsuiness

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  • Don’t forget to mention the commonly accepted business practices…
  • Don’t forget to mention the commonly accepted business practices…
  • Reasons for small business outsourcing

    1. 1. Prepared By:
    2. 2. What is Outsourcing  OutsourcingOutsourcing – Contracting with outside professional servicesContracting with outside professional services to meet specific business needsto meet specific business needs.. 2013 IO Marketing – Proprietary and Confidential
    3. 3. 2013 IO Marketing – Proprietary and Confidential Reasons for small business outsourcing  Traditional role - reaction to problemTraditional role - reaction to problem – Reduction and control of costsReduction and control of costs – Avoid large capital investment costsAvoid large capital investment costs – Insufficient resources availableInsufficient resources available  Modern role – business strategyModern role – business strategy – Allows company to focus on their coreAllows company to focus on their core competenciescompetencies – Keeping up with cutting-edge technologyKeeping up with cutting-edge technology – Creating value for the organization and itsCreating value for the organization and its customerscustomers – Building partnershipsBuilding partnerships
    4. 4. 2013 IO Marketing – Proprietary and Confidential Where are they outsourcing to?  Outsourcing can be farmed out to a varietyOutsourcing can be farmed out to a variety of places, but you will find more often thanof places, but you will find more often than not, to developing countries on the rise.not, to developing countries on the rise. – Bangalore, India (Call centers)Bangalore, India (Call centers) – The PhilippinesThe Philippines – Saudi ArabiaSaudi Arabia – ChinaChina – Eastern EuropeEastern Europe – CanadaCanada
    5. 5. 2013 IO Marketing – Proprietary and Confidential Outsourcing Processes  Once a company has decided to outsourceOnce a company has decided to outsource certain business functions, it shouldcertain business functions, it should consider the following:consider the following: – What services to outsource.What services to outsource. – Which outsourcing firm provides theseWhich outsourcing firm provides these services.services. – Evaluate top candidates.Evaluate top candidates. – Checklist.Checklist.
    6. 6. 2013 IO Marketing – Proprietary and Confidential Benefits  Improved Service to the CustomerImproved Service to the Customer – Outsourced companies can receive techOutsourced companies can receive tech support 24/7, with a smaller budget.support 24/7, with a smaller budget. – Outsourcing companies generally useOutsourcing companies generally use standardized equipment and methods.standardized equipment and methods.  Saves time and money for the customer.Saves time and money for the customer. – When tasks are outsourced, it allows a companyWhen tasks are outsourced, it allows a company to concentrate on its core competency.to concentrate on its core competency.
    7. 7. 2013 IO Marketing – Proprietary and Confidential Difficulties  Threats to security and confidentialityThreats to security and confidentiality – Sensitive information such as payroll, medicalSensitive information such as payroll, medical records and banking/mortgage records.records and banking/mortgage records. – Hidden costs to outsourcingHidden costs to outsourcing  This includes the contract between companies, as wellThis includes the contract between companies, as well as legal costs incurred.as legal costs incurred. – Loss of possible strategic asset or skillLoss of possible strategic asset or skill  Could it have been used to create a competitiveCould it have been used to create a competitive advantage over your competitors?advantage over your competitors? – Loss of control, and dependence on anLoss of control, and dependence on an outsourcing vendoroutsourcing vendor
    8. 8. 2013 IO Marketing – Proprietary and Confidential Outsourcing occurs at a rate of betweenOutsourcing occurs at a rate of between 2 and 3%2 and 3% Outsourcing Fact
    9. 9. 2013 IO Marketing – Proprietary and Confidential Is Outsourcing a Good Thing?  Some Americans don't believe that offshore outsourcing isSome Americans don't believe that offshore outsourcing is bad for this country. They seem to be convinced that we canbad for this country. They seem to be convinced that we can be strengthened as a nation if we are forced to compete in thebe strengthened as a nation if we are forced to compete in the global economy.global economy.  Stimulates trade and creates a stronger economy in the U.S.Stimulates trade and creates a stronger economy in the U.S. and more jobs in the long runand more jobs in the long run  A way to get the job done for less money by:A way to get the job done for less money by: – reducing and controlling company operating costsreducing and controlling company operating costs – freeing up internal company resources for more important purposesfreeing up internal company resources for more important purposes -improving the company focus and resultant productivity-improving the company focus and resultant productivity  U.S. businesses need to stay competitiveU.S. businesses need to stay competitive
    10. 10. 2013 IO Marketing – Proprietary and Confidential Is Outsourcing a Good Thing?  Some Americans don't believe that offshore outsourcing isSome Americans don't believe that offshore outsourcing is bad for this country. They seem to be convinced that we canbad for this country. They seem to be convinced that we can be strengthened as a nation if we are forced to compete in thebe strengthened as a nation if we are forced to compete in the global economy.global economy.  Stimulates trade and creates a stronger economy in the U.S.Stimulates trade and creates a stronger economy in the U.S. and more jobs in the long runand more jobs in the long run  A way to get the job done for less money by:A way to get the job done for less money by: – reducing and controlling company operating costsreducing and controlling company operating costs – freeing up internal company resources for more important purposesfreeing up internal company resources for more important purposes -improving the company focus and resultant productivity-improving the company focus and resultant productivity  U.S. businesses need to stay competitiveU.S. businesses need to stay competitive

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