What is outsourcing

What If you find something that you cannot do efficiently, better and cheaper than your competitors, it does not make any sense to do it even after that. It is better if you hire someone to do that job for you.

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What is Outsourcing?

Outsourcing is the task of assigning your particular work activities to some third party for a particular time period at specific costs. This is the process of handing over your business tasks to the experts who have the knack of doing it more efficiently.

Since there are so many outsourcing companies present in the market, it is important that you chose your business partner very carefully. It should be done with thorough observation.

What is Outsourcing in Business?

Most of the business owners have a lot of talent but many times they think that they can do it all. But that may prove to be a hindrance to the growth of the business. When you outsource the day to day office tasks, the business owner has enough time to pay attention to generating income from the main business processes.

Entrepreneurs and owners of small businesses have seen outsourcing as a method which is reserved for corporations only. But that’s not the truth, fortunately. Technology has made it an accessible tool for small businesses and for small firms as well. Outsourcing has actually made a very powerful impact on their growth and the productivity.

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More and more small businesses are now outsourcing different tasks to the agencies now. And it is the technology which has made it easier. With such an advanced technology, we are now able to work from anywhere in the entire world. In fact, this gives a wonderful access to the extremely qualified professionals who might have decided or been forced to quit the corporate world like marketing directors, virtual assistant, HR consultants and more.

All these freelancers join as subcontractors and save the small business entrepreneurs from a load of paying overhead related to the payroll taxes and expenditures like health insurance and compensation of the workers. Together with this, space constrictions are also bid farewell when you as a business outsource different services.

Outsourcing Examples

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Before we get in this, let us get into its finest examples that show how outsourcing can make a big difference:


For most of the crowd, Alibaba.com is China’s eBay but rare do know that it took its place as a small “internet company” familiar as China Yellow Pages. Today it is one of the biggest global marketplaces.

But the question is what has outsourcing to do with it? Well, according to the Alibaba: it is revealed that the creation of this biggest marketplace of the world is related to outsourcing only. In the initial years, the founder of Alibaba, Jack Ma outsourced the website development to a US firm. At that time, development China was in short supply and developers in the US had those skills that Alibaba was seeking for.

Well, that is just one reason. The other is MA was looking for some apparent ways and workarounds in order to grow his company and see it overcoming all Chinese internet limitations. Presently, the company still depends on outsourcing partners for production, but now they are based in China.

So, that was one story. Here is another successful example of outsourcing:


In the world of coding, GitHub is the most known community and tools that people use. It fetches a lot of attention today. GitHub was established in the year 2008 by PJ Hyett, Chris Wanstrath and Tom Preston-Werner as a method to host, edit, document and share the private code. It has got its roots in an outsourced development consultancy.

Outsourcing Benefits

An Access to Expertise

When it comes to your business there is always a need for the professional or some expert to take charge of your work responsibilities. And because there is a wide niche to deal with, every field has got its own experts. Employing an experienced and reputable vendor to take care of all such duties on behalf of your company can actually result in detailed and accurate services. These may not be provided in-house as you have got a very limited access to related professionals. Representatives of outsourcing companies get professional training and education about different products. And such a typical hiring of the resources is what takes your business to heights.

Saves time

There are a lot of works which eat up plenty of time like data recording, bookkeeping, payrolls and more. And when your resources get occupied in all these activities, the business profits decrease ultimately. However, when you choose to outsource these specific business tasks to the professionals, you save a lot of time. And this in return lets you be productive and have more profits in your pocket.

Save Cost

Adding on to the potential cost saving realized by not employing in-house benefits the coordinator. The outsourcing advantages may result in decreasing the premium co-payment costs for an organization. If outsourcing advantages allow your people to participate in large group retirement and health plans, costs will decrease there too.

Enhanced Employee Privacy

Financial and health matters both are very sensitive issues. And many times employees may not be comfortable in talking about with a co-worker. Outsourcing merits permit the employees to maintain a very good sense of privacy which may also lead to less hostility in the premises. For instance: if an employee is disturbed for some health issue or for disclosure of financial resources he or she may not want to discuss, there are chances he or she may burst out on some co-worker or employee in anger. This leads to a very toxic ambiance in the place. If advantages are outsourced and there is a neutral representative to take out the matters, frustrations do not enter the workplace.

Less Potential Liability

Business owners who employ the advantages in-house may be at some legal risk if the employees decide to prosecute on some issue they feel is a breach to any confidential information from in-house benefits administers. For instance; if an employee is going through some serious health issue she has not disclosed but the management fire her for not showing up to the mark performance, she could charge that she was fired because a company had an idea of her health issues.

Now that you know the exact merits of outsourcing, it is important for you to be aware of the sources that can be outsourced.

Outsourcing services

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Hiring full-time employees for payroll is a mere waste of time as well as money. For most of the businesses, payroll services are a part-time thing only. Outsourcing payroll services mean that you pay just for the services you use and just for the amount of time you make use of their knowledge and input.


Bookkeeping and accounting are monotonous jobs. These may take up a lot of time. So to save your business’s valuable resources and time that may otherwise be put to some more productive work, it is better that you move to give away all the bookkeeping work to an outsourcing service provider.


Recruitment again is a time-consuming process. It takes a lot of time and money on conducting interviews, advertising and eventually finding the right candidate for the required profile. Another loss of keeping recruitment as an in-house is this that you may not have an approach to a technically skilled recruiter who could bring out the desired results in less cost.

Tax Return Filing

Tax paperwork is also a burdensome thing to take account of. Additionally, keeping up with always changing tax laws is a difficult process. So it is better to outsource this loaded task to some third party and invest this time in doing something useful and for fetching more money.

Website Updates

Websites need to be updated regularly if you want to keep pace with the ever-changing trends and competition in the market. And there is no better way of staying ahead in the market then outsourcing. When you go with offshoring you enjoy even more benefits because the time zone difference makes it even more convenient for you.

Administrative Tasks

Daily boring tasks like task scheduling, data handling, travel arrangement and more may make it difficult to do the job with that efficiency for any employee. So there is no point in wasting your time on jobs that can be sent overseas, at cheaper rates while paying less for it.


Irrespective of the type, marketing tasks can be outsourced for better output. Like ad campaigns or telemarketing, these show better results when an outsider does it. Because it gets a new perspective. You may get a new business strategy, and a perfect grip over the competitors. Taking the fact that marketing a product in just the perfect way is half the battle. This helps you win over the competition.


With this, it is not hard to declare that outsourcing is taking the businesses to another level. When businesses outsource they enjoy a lot of benefits that eventually bring out the profits from the business and also the keep the organizations ahead of their competitors. Since most of the businesses have already switched to this trend, they are successful and many are on the path of it. And if you have got the power of outsourcing, stop giving it a second thought and go ahead with this exclusive choice. This is going to create a big difference indeed!
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Related articles:

What is Outsourcing in Business. Example. Benefits. Services.
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What is Outsourcing in Business. Example. Benefits. Services.
Outsourcing is the task of assigning your particular work activities to some third party for a particular time period at specific costs. This is the process of handing over your business tasks to the experts who have the knack of doing it more efficiently. What If you find something that you cannot do efficiently, better and cheaper than your competitors, it does not make any sense to do it even after that. It is better if you hire someone to do that job for you. Read more
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SITO: Software & IT Outsourcing
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