Question

Explain the nature and importance of outsourcing

Answer 1

Answer:

Outsourcing can help businesses in many ways, including the following:

Time: This is the one thing that all business owners need more of but is impossible to create. By outsourcing, you are taking something off of your plate and freeing up more of your time. This allows you to spend more time growing your business.

Money: Outsourcing almost always is the cheaper option which in turn saves you money. For example, outsourcing your bookkeeping allows you to save 50–75% in comparison to other options. This money saved can be put towards other parts of the business.

Productivity: As a small business, you likely have a small staff of dedicated employees. It is important to make sure you are getting the best production from your team by allowing them to do what they do best. A lot of routine daily tasks such as bookkeeping are usually handed off to someone on the team who could better spend their time doing something they are skilled at. By outsourcing, you are allowing your employees to do what they do best.

Customization: Nothing about starting a business is static. It is constantly fluctuating so you want to have services that can scale with you. For example, if you hire a full-time bookkeeper, you are going to be paying them the same amount whether they are busy or not. If you outsource, you can get a solution that is custom to your needs.

Explanation: