Fall of the Iron Curtain in November of 1989 has signaled the beginning of the new world and major paradigm shift in business. Various trade agreements that came into being along with advancements in transportation, communication and technology in the years that followed, have paved the way for a new phenomenon know as globalization. Globalization has in turn created a fierce global marketplace where only the most innovative, creative, agile and flexible business organization can survive and ultimately prosper.
Taking into consideration fierce global competition and economic volatility in recent decade, starting a business or running the existing one can be rather daunting task to say the least. Controlling operational expenses while growing the revenue on monthly basis is among the key priorities of those at the helm. Luckily for them, various skill sets required for day-to-day business operation can easily be outsourced from freelancing platforms i.e., Upwork, Parttimerz, Guru at the click of a button.
While outsourcing benefits are many, these are three key reasons startups, small-mid size businesses and even enterprises flock to outsourcing business model:
1. Cost reduction/control
Regardless of the industry or a vertical, companies costs associated with sourcing, training and employee benefits are usually prohibitively high. In the case of bootstrapping startups, small to mid size businesses and in some cases even the cash rich enterprises, such costs are unbearable and can literally harm the business, bringing its existence into question.
Luckily, myriad freelancing platforms i.e., 99 Designs, Parttimerz, Freelancer etc. specifically designed for online outsourcing exist to choose from. Instead of shedding enormous amounts of money on staffing full-time employees for supporting roles e.g. accounting, blogging, legal, web development/design etc. businesses can simply turn to online outsourcing platforms and hire professionals on the fly for duration needed, without long-term financial commitment.
2. Improved efficiency and effectiveness
Whatever the business core competencies might be i.e., healthcare services, IT hardware manufacturing, logistics and transportation, considerable amount of its budget its allocated to non core, supporting activities i.e., Human Resources, Procurement, Marketing etc.
By outsourcing supporting activities, businesses can free up valuable resources and reallocate them to their core competencies and revenue generation activities. By doing so, businesses can considerably improve efficiency and effectiveness, all of which can lead to leaner and more nimble operation.
3. Flexibility and quickness
When a business is at infancy, more often than not, founders dream of turning it into something much bigger, stronger and seemingly more stable. Founders buy into a myth of get big fast or go home and do whatever necessary to grow big. In the process they go on a hiring spree and recruit staff they need to fill current vacancies and in some cases they even fill the future business needs.
Needless to say, such behavior renders business inefficient, slow and inflexible. When the time for change or downsizing comes – be it due to economic slowdown or forced corporate restructuring – such businesses are faced with major predicament, for shrinking a business is far more difficult than expanding it.
To avoid such predicament and weather economic slowdown or unplanned corporate restructuring, businesses simply need to turn to outsourcing providers i.e., Freelancer, Parttimerz, People Per Hour and hire high calibre employees on a part-time basis. By doing so, business owners achieve complete flexibility and unparalleled quickness as they can scale up/down on the fly without negative financial impact.
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