With the cost of conducting business these days increasing every single year, it makes good sense to consider outsourcing for all those functions which are not strategic to your business. There’s a great deal of appeal to the model which allows you to pay-as-you-go, without making any enormous upfront investment.
For that reason, many companies in the US have found it extremely advantageous to outsource as many business functions as possible. Those areas described below are the most popular tasks which are moved out of the company, and given to reputable firms to handle.
It simply makes good economic sense for many US companies to consider outsourcing their manufacturing processes to other countries, where labor, equipment, and facilities are far less expensive. Even with labor rates rising in other countries, it is usually still far cheaper to manufacture products abroad than it is domestically.
Accounting and finance
A large number of small businesses are able to manage their own accounting and finance functions simply by using a simple accounting software package such as QuickBooks. For larger businesses, the single biggest cost associated with accounting and finance functions is the expense of hiring and keeping qualified personnel in your company. If your company is one that requires a full-time accountant, you should consider outsourcing as one very viable solution.
Cloud computing has the potential to save your company a ton of money, because there is no huge investment in hardware or software which is needed, in order to build your own internal infrastructure. You can also save a great deal of money by not having to hire computer professionals to manage that infrastructure for you.
Another great way of saving a ton of money is by sharing a location where your office functions can be carried out. This will allow you to save money on office rent, utilities, phones, security, office equipment, and even support costs. You generally won’t have to commit to a long-term lease, and you can pretty much find shared location opportunities in several different areas of any city in the country.
Most of the human resource functions which any business engages in can be competently performed by Professional Employee Organizations (PEO’s). These companies will handle all your employee hiring, management, compliance, and benefits functions, so that you can focus on the core tasks related to your business. You can save even more money by joining forces with similar companies, thereby gaining the possibility of an outsourcing discount from your chosen PEO.
If your company needs capital to prepare for outsourcing, we may be able to assist you at Black Wolf Capital Group. Contact us at your convenience, so we can discuss funding for your upcoming outsourcing initiative.