Sunday, October 26, 2014

Small Business IT Outsourcing

Small Business IT Outsourcing


So what is Outsourcing? Outsourcing is the practice of using outside firms or resources to handle work that would ordinarily be performed from within the company.

A large number of small businesses outsource functions such as payroll processing, accounting and distribution. With the growing reliance on computer software, computer hardware and electronic communications via email and mobile technology there has never been a stronger case for small business IT outsourcing.

It is time for businesses to understand and start to realize the benefits of small business IT outsourcing. So what are some of the core benefits that can be realized from small business IT outsourcing.

Controlling Capital Costs: Cost cutting will never be the only reason to outsource, but it is definitely a major factor. It can allow fixed costs to become variable costs which will release capital back into the business for investment elsewhere. Allows you to avoid large expenditure in the early phases of your business. This can also make your company more attractive to investors and venture capitalists as the investments will be ploughed into revenue generation rather than salaries or high cost capital IT equipment purchases.

Increased Efficiency: A company that does everything for themselves has very high IT costs and must pass these costs onto their customers. Utilizing small business IT outsourcing can allow you to access resources and services that would be very expensive should you have to pay for full time employees to do the same roles.

Reduced Labor Costs: Recruiting of staff or hiring of contractors on fixed term contracts on a peripheral project by project basis can be extremely expensive. Small business IT outsourcing allows you to focus your human resources where they matter the most.

Start New Project Quickly: A good provider of small business IT outsourcing will be able to resource and start a project straight away. A similar project handled internally could take weeks or months to get started, if the internal resource has the skills required for the project. You might have to spend months hiring the right people or training the people within your organization.

Focus On Your Core Business: Small business IT outsourcing can help take away the focus on peripheral tasks and duties allowing you to align your resource to serve your customers and for your managers to set their priorities more clearly. All businesses have limited resources and those resources need to service the businesses customers.

Create A Level Playing Field: Most small companies cannot afford to match the IT services and Infrastructures that larger companies are able to maintain. Small business IT outsourcing allows you to match lease larger companies without the capital investment.

Reduce Risk: Every investment that a business makes, carries a degree of risk. Competition, markets and technologies all change very rapidly. A small business IT outsourcing provider manages these risks for you, leaving you to focus on the running of your business and managing the satisfaction of you customers.

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