Outsourcing is a term which has been receiving a great deal of attention lately. Actually I was first introduced to the world of outsourcing by Tim Ferriss through his book 4-Hour Workweek. But despite the increasing trend in companies and individuals relying on outsourcing to get some of their task done, there are still some who do not clearly understand what exactly the term outsourcing meant. Don’t worry, that is why you are here. In this post i will share some of the key elements of outsourcing, to help you develop a better understanding of the concept of outsourcing. So let us get down to business.

What is Outsourcing?

This is the all important most basic question many people ask about the subject of outsourcing. They are not yet ready to go into the complex aspects of outsourcing because they are yet grasped the most basic understanding of the subject and its process. In the simplest language, outsourcing is when you delegates the completion of certain tasks to another person. This individual may be an independent contractor or an employee of another company who is subcontracted to complete these tasks. In exchange for the individual’s services, he or she receives monetary compensation.

Outsourcing is when you give a task that you are less skilled or do not enjoy performing to another individual who is skillful in it and can do it perfectly, in exchange for monetary compensation. Outsourcing gives you time to concentrate on those task in which you are more skilled and can perform without stress. Outsourcing have a lot of benefits but that will be discussed when we get to the benefit of outsourcing.

Types of Outsourcing

Domestic outsourcing refers to outsourcing where both the primary parties involved are located are located in the same country or location. They can get to meet face to face and discuss the terms and conditions on which the outsourced job will be based on. Although one of the main reasons for outsourcing is to reduce costs but it is not always necessary to outsource work overseas to reduce costs. You can also get someone who will give you quality result on task at a fair price within your locality. Cost savings is also one of the benefits of outsourcing and i will be discuss in detail under benefits.

Offshore Outsourcing: Most people are already familiar with this type of outsourcing. For those who do not know what this is yet, with this type of outsourcing a large corporations such as Apple, and even some smaller companies, employ manufacturing plants overseas in third world countries such as India, China and some others to reduce their cost of production and upsize their profits. This is significant because their costs including wages, materials and building lease would be considerably higher in their home country let say in the United State for instance, than it would be in these other countries.

The good thing is that not only big corporations and companies alone can enjoy the benefit of outsourcing, you can run a successful business as an individual by outsourcing. There are a great deal of people outsourcing tasks to people on site such as fiverr, elance, freelancer, odesk and many more. Believe me most of the big names making it on the internet business scene have most of their task outsourced. The truth is that you can’t all alone do what it takes to be successful in business both online and offline.

Benefits of Outsourcing

By now you should have a clear understanding of what outsourcing is. Ok now that you have a clearer understanding of the concept of outsourcing, you might wonder why companies or individual would go through the trouble of outsourcing certain tasks? Outsourcing is becoming popular everyday and more people are coming to the awareness of it, because there are a great deal of benefits to the companies and individual who engages in outsourcing task. Some of the benefits include:

Reduced labor costs

One of the main reasons people or companies resort to outsourcing is the fact that it helps to reduce costs significantly. In the case of overseas outsourcing of manufacturing tasks, costs can be reduced dramatically because there are lower wages and costs associated with managing and maintaining the manufacturing plants. However, companies also enjoy cost savings when they outsource tasks domestically. Reduction of labor costs is the primary reason for outsourcing in this case. Independent contractors hired on a contract basis for the purpose of completing specific tasks are often not given benefits such as social security, Medicare and workers’ compensation and some other juicy benefits you would have to give to a regular employee or staff..

Increased workforce

Another benefit to outsourcing is that you get to enjoy a larger workforce without actually hiring additional employees. By maintain networking relationships with qualified individuals you will have more opportunities open to you because you will be able to rely on these individuals to assist you if you acquire large or complicated projects. And these army of qualified workforce are paid per project not on monthly like regular employees.

Greater flexibility

Finally, outsourcing gives you a great deal of flexibility. If you have a significant workload and backlog of work where the majority of your employees are highly utilized, you might be hesitant to compete for new works because you do not have a great deal of employee availability. However, with a network of individuals to rely on if the need to outsource arises, then you have more flexibility in pursuing new work. And outsource it to your army of outside workers.

Conclusion

Outsourcing is a great thing to practice especially if you want to accomplish more with your limited knowledge or skill. How can outsourcing be of benefit to blogging? fine the tasks involved with blogging sometimes can be overwhelming, from blog design and development, to writing article, to blog marketing, traffic, SEO and so many more. There is always a need to outsource some of these tasks and that is the reason why you must know about outsourcing and how it can help accomplish your desired result.

I have heard of someone who outsourced the reading of a book. He asked the person who he outsourced to, to read and summarize the important points in the book to him after reading it. What a wonderful world of outsourcing.

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There are many benefits in outsourcing. You can save more time and money so that you can focus more on your business core. You can take advantage of the highly trained and experienced specialist that can do the job for you 24/7. You business will increase its productivity and efficiency. It can also make your business become more successful. Your workforce is increased and you will not have any problem handling them.

Hello, the main advantage of modern outsourcing is the reduction of staff costs. The manager pays for the work done, not the time spent at the workplace. He does not assume the obligation to pay for vacation, maternity leave and other mandatory social benefits. If you are interested, you can check here for detailed information on all the benefits of outsourcing.

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