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28 Mar 10 Is Outsourcing Business Process a Good Strategy?

The answer (to the above question) depends upon whom you are asking this question. But, for the sake our discussion, I will tackle this question from a business owner’s point of view—also because I do not want any political controversy on this blog.

For a business owner, outsourcing any business process that is not its core is a not good but great strategy. I am not saying this to put bread on a family’s table in a third-world country, I am saying this because doing things that you are not good at will cost you doubly— (a). You will not be able to produce quality work, (b). And you will end up wasting time that could be invested on doing things that you are best at.

I do not play baseball nor do I play golf. I even do not know their terminologies. How do you think I will fare, if I take a baseball bat or club in my hand? I may hit a home run by fluke, but I cannot repeat it. So, if I were wise, I would have played chess or cricket, instead of going for baseball or golf. By not doing so, I have not only made fool of me, but I also end up wasting precious time I should have invested on games that I know.

It holds true for business processes as well. If you are a programmer who has started a small company, or if you are an existing small business owner that is good at manufacturing and marketing then you should outsource designing, SEO, marketing works to outside vendors whose core competencies lies in these fields. They will do better job at significantly lower cost. And the cost incurred will be even less, if you outsource your work to the third-world countries.

Did you say quality? Don’t worry, not everyone is bad there.

Benefits of outsourcing

  • It frees up your time that you can devote on doing things you are good at.
  • It can get you better result at a fraction of the cost incurred if you had worked on that.
  • The work quality is often good.
  • It will help you speed-up the process of product creation, testing, and delivery.
  • You will get a bigger team to think on the problems that your customer’s face. Who knows, you may get a brilliant insight from there.

Above, I have just a few of the benefits. I do not claim here to know all the benefits, and I am sure, you can suggest countless more benefits of outsourcing. Why do not you post your comment here?

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