Let Someone Else Do It: Outsourcing

When a small business has decided to try and lower cost or make better use of their time and energy costs, what should be their next step? If the first thought that comes to mind is Outsource then you are correct! Outsourcing made its entry into the business world during the 1980’s and has been the success of many small and large companies every since.

Outsourcing is defined as subcontracting a service to a third-party company. It involves the transfer of the management or everyday execution of an entire business function to an outside service supplier. Ethically, both parties enter into a contractual agreement that clearly defines the transferred services. Outsourcing could be in the form of people, assets and other resources from a specific client.

Typical outsourced business segments include:

Real estate management
Human resources
Customer support
Facilities
Accounting
Information technology
Designing

A prime example of outsourcing involves a company called Affiliated Computer Services (ACS). ACS provides information technology services as well as business process outsourcing solution to government agencies, businesses, and non-profit organizations. In September 2009, Xerox Corporation announced preparations to acquire ACS. The transaction was set at $6.4 billion. The deal is expected to close in early 2010.

Reasons why outsourcing is carried out:

Purchase of industry best practice
Improve risk management
Control of budget
Ability to concentrate on core functions
Lower costs due to economies of scale
Gain market access and business opportunities through the supplier’s network

About CODANK Charlotte Web Design

CODANK is a top rated Charlotte Web Design, Internet Marketing and Search Engine Optimization firm located in Charlotte, NC. We are dedicated to providing the highest quality, cost effective custom software development services, delivering a broad range of business consulting and outsourcing services. We specialize in web design and development, branding and identity, internet marketing, and content management systems.

For more information, visit us at www.codank.com