Wednesday, 19 October 2016

Outsourcing an aspect of your business

Hello readers, today I will be telling you about outsourcing. Outsourcing is a situation whereby a company gives another company a portion of their work to  execute on their behalf. The benefits of outsourcing include:

Cheaper Cost
Outsourcing helps your company to reduce cost, the capital being saved will help your company execute other business transaction which will in turn make your company more attractive to investors.

Attend to core area
When you outsource an aspect of your business it helps you focus on the core areas of your business as you have free energy and time to work on those business task.

Increased efficiency
When you outsource that aspect of your business. You are giving it to an expert to help you execute the task. Since they are expert then it is most likely they will do the job better than you do, thus it will increase productivity and efficiency.

Reduced Risk
The risk your company faces such as risk from the government or your business market. If you outsource a particular business area, the experts you outsourced that  area to will be able to forecast the risk associated with the area you have outsourced to them (since they are experts), thus they will put control in place to reduce the risk or eliminate the risk.

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