Today, outsourcing is the latest buzzword in the global market. It makes good business sense to outsource and most businesses, no matter their size are outsourcing. But should your business outsource too? Would outsourcing be useful to your company? Here are seven reasons why most companies choose to outsource at least a few business activities.
1. Save more on the cost of labor: The cost of labor in developed nations is always on the rise, making it expensive for employees. Outsourcing on the other hand can help you get the same job done at a much lower cost by equally skilled professionals.
2. 24/7 services: With outsourcing as an option, you can provide your valuable customers with round-the-clock services, without stressing out your existing staff. Even if your in-house staff goes on vacations or holidays, your outsourcing vendor can continue to provide support.
3. Fast turnaround time: The time difference between countries like India and the US has helped several companies reduce their turnaround time by half. With outsourcing, your firm can reduce the time to market for new products. This way, you can successfully out beat your business rivals who do not outsource.
4. Increased business growth: Outsourcing is a great way to grow your business and transform the way it functions. Once you outsource a few non-core activities to an outsourcing vendor, you will be free to focus on your core business.
5. Get access to expert skills: Companies outsource to make up for the shortage of skilled workers in the US. Outsourcing is a smart way of getting access to a large pool of skilled workers at a low cost.
6. Move up to a higher level on the value added chain: Once you outsource, you will be free to build up your business and move up to a higher segment on the value added chain.
7. Get tax breaks: Since the Federal Law states that companies can defer payment of tax on the profits earned in an offshore destination for an indefinite period, your company can get tax breaks by outsourcing.
If your company wants to increase productivity, cut back on cost and use resources for core business tasks, then outsourcing may be the answer for you too.
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