Doing Business by Outsourcing
There are many great reasons why companies choose to go for outsourcing
. For many small online companies it is the simple fact that it is now possible to have a company at home just by using outsource resources. In fact, it can be a fully operational company with staff members located all over the world and working on different time zones. Having an outsourced working team has advantages and disadvantages. Here are some: Advantage #1: Companies do not need to spend as much on services since the expenses cover not only the labor but also the other materials used in the task. Commonly for example, these might include the electricity and Internet expenses to perform the tasks. An independent contractor agreement is all inclusive and generally does not include additional payments for these. Disadvantage #1: Since the payment is technically limited, there are instances where the company almost has little or even no control when the staff reasons out technical problems. The company is left no choice but to cooperate and just understand the situation. For example, if you are dealing with a part of the world where major Internet availability problems pop up, you may need to wait until service is once again available. If left unaddressed, some of these situations can even prejudice the operation of your business. Advantage #2: Its faster when it comes to delivery of outputs. Having contractors work in different time zones makes it all possible. The employer can just send a task list at the end of his work day so the outsource resources from the other side of the globe can work on it in their time zone. Disadvantage #2: Since the company only has the Internet or the phone to use when it comes to giving out instructions, it is really important that everything be all clear and simple for the outsource resources to understand. Miscommunication is the common problem hindering outsource success when working on an arrangement. Advantage #3: Payment method is easy. Outsource resources can be paid on a fixed-rate or by an hourly basis. It depends on the preference and budget of the company. The money transfers are also not much of a problem since there are so many payment processors available today. Disadvantage #3: Since the options are on a fixed-rate or on an hourly basis, there is a chance that deadlines will be missed. In an hourly basis, unless there is a reliable time management system, there is no knowing if the agreed time is actually met. These are just few of the pros and cons that can be seen when shifting into outsourcing. It is best for you to carefully study all aspects of your need and then see if outsourcing could benefit your business. To your outsource success!Doing Business by Outsourcing
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