Outsourcing is subcontracting a service or process to a third-party specialist who has economies-of-scale advantages. Almost every company outsources some part of their business today. But is this really saving company’s money? It makes sense to subcontract another company to come in and take over the services that are not core parts of your business. The most common outsourcing relates to IT, payroll, customer service, and data entry. Basically anything that does not require face to face contact. There are four stages to incorporating outsourcing into a company, strategic thinking, evaluation and selection, contract development, and outsourcing management. Outsourcing doesn’t necessarily have to take place overseas, although that is where it has been proven to be the cheapest. Costs of outsourcing includes, finding a reliable outsourcing partner, training the staff for outsourced services, managing the outsourcing process, retaining the staff and maintaining the quality of service, and transferring dependency on the outsourcing partner. Most companies look to outsource for the cost effectiveness. Continue reading ‘Outsourcing: Good or Bad?’ »