There are many different types of outsourcing available to small businesses. Learn the ins and outs of outsourcing, and make knowledgeable choices for your business.
History of Outsourcing
Outsourcing began in the ‘80s, when the United States was suffering from high unemployment and high inflation. Many big industries which had previously flourished; for example, the automobile industry, were in financial trouble, and outsourcing some of their workload to other countries became their only hope of survival. Outsourcing allowed businesses to have certain jobs done more cheaply, by another country's workforce, without having to deal with the restrictions enforced on them in the US.
Effects of Outsourcing
The effect outsourcing has on the United States has been the subject of many heated debates.
Some believe outsourcing work to other countries is good news for the working man. Outsourcing activists believe that if people in other countries are doing the perceived menial labor, then Americans in the workforce can concentrate on holding jobs at a higher level, and hopefully a higher pay scale.
Anti-outsourcers argue that outsourcing jobs that could be held by skilled Americans creates high unemployment rates, and affects the US economy in a negative way. It is believed that due in part to outsourcing, Americans who are minimally skilled live in virtual poverty, because it is so much more difficult for them to find decent paying jobs.
Types of Outsourcing
Telemarketing outsourcing is very popular because a business doesn’t have to provide office space, telephone lines, or medical insurance for outsourced employees. Listed below are a few other types of outsourcing available to businesses that are looking for ways to get the job done, without having to spend extra money on office space and employee benefits.
- Data Entry Outsourcing — is when someone transcribes data from one form into another. An example of this would be if a company needed handwritten medical information transcribed into a computer. Businesses that need data transcribed can outsource the work, hence lowering their overhead.
- Help Desk Outsourcing — many companies provide help desks to their customers. Software development companies are a great example of businesses that might need to provide help desk assistance resources to troubleshoot clients' problems. Outsourcing this particular job is an economical way for a business to provide the necessary service, while still maintaining a cost-effective product.
- Sales Outsourcing — companies who rely on sales for their livelihood often outsource an independent sales team.
- Payroll Outsourcing — many small businesses outsource payroll management for accuracy, reliability, and cost effectiveness. Many outsourced payroll-services providers also handle tasks like printing and distributing checks, as well as dealing with the necessary end-of-the-year tax documents.
- Customer Service Outsourcing — for many businesses, repeat business depends largely on their ability to provide excellent customer service. Many Americans know that it can be frustrating to have to deal with a customer service representative who can barely speak English. So companies should use extreme caution when planning to outsource their customer service department.
Understand Outsourcing
Customer service outsourcing, along with the advantages of many other different and diverse outsourcing opportunities a business can take advantage of, are sources of debate. The decision to use outsourcing as a means to cut costs, necessary office space, and employees' benefit packages, is important; so make sure to understand the potential benefits as well as the pitfalls.
Kelly Dupree - My love of animals, especially cats, and my interest in science has led to a serious passion to write well researched articles.
