Tuesday, August 16, 2011

Outsourcing: the meaning within

Entrepreneurship is the back bone of any economy and with the current shrinking of the entire system there has been a lack of it prominently. Even though there are many businesses that are the foundation of what makes our country work, but it's the small business owner that keeps the economy growing. Back office Outsourcing is one of the answers to many economic growth problems but no one wants to hear about it.

Small businesses are the backbone of the economy and make up a majority of the country's income. Mostly due to lack of skilled work or not enough work to support a larger staff, small companies can't handle all of the work that needs doing. Many businesses that need work can't sustain long contracts with other companies so they use them on a case-by-case basis. Back office outsourcing companies come into the picture when the small companies can't handle large salaries for many employees and also they become unsure of a consistent clientele. For attaining success, the best choices should be made in the company model and business analytics. And offshore outsourcing services are just a means to that end. 

People are usually sceptical about the BPO jobs that they believe that outsourcing jobs to other countries means job loss in their country. But that is completely false. Usually the small businesses can’t afford what it takes to support many workers in the first world countries with a higher standard of living. If you can't get the job done with local workers, then look towards outsourcing to get five times of the original work done for almost half the price. Sometimes BPO services simply mean that a business is expanding their services through outsourcing, which will mean greater opportunity for the host country and its economy.

Outsourcing is not synonym to loss of job opportunities. It often means that the work is being contracted out to an agency or service provider. It's a way for a business to get the job done without having to create entire departments, which ends up saving a company millions and keeps them in operation.