ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Benefits of Outsourcing for a Business

Updated on June 20, 2013

Benefits of outsourcing

In today’s economy, a company that wants to be profitable and ongoing must be leaner, faster and smarter than the competition in order to survive. One way to do this is by business outsourcing.

How does business outsourcing allow a company to be leaner? First of all, it can reduce the amount of capital expenditure and overhead for every position that is filled through outsourcing or use of a consultant. The employer does not have to make an investment in capital – desks, computers and office space. There is also less general overhead and administration required to support a consultant than that required to support a full time employee.

Using business outsourcing allows a company to work faster. Using business outsourcing means that individuals retained for a specific position or function are ready to work from “Day One”. Usually, there is no training required. If the job requires someone with a specific set of skills, such as a specific computer programming language, those are the skills that are sought through the outsourcing process. A quick start up can often mean the difference between a profit and a loss.

How does business outsourcing make a company smarter than the competition? Business outsourcing allows a company to hire the best available talent for an optimum amount of time. A company might not be able to afford hiring a high level professional, but outsourcing an assignment until a specific task is completed, may be much more affordable.

Another advantage to outsourcing is that a company can avoid the losses in time and money that can result from being on the “bleeding edge” of technology. Rather than gambling assets on developing technology, a company can choose to hire individuals who have already “been there, done that”. This means a company can begin to eliminate much more quickly what doesn’t work and concentrate on what does.

There are other obvious advantages in business outsourcing. Payroll expenses are reduced, since most outsourcing agreements are paid by an invoice process, rather than put through payroll. This in turn, reduces benefits costs. Vacation pay, sick pay, 401K matches and bonuses are non-existent for staff that is working on an outsourced or consultant basis.

Outsourcing work means that the company only pays for what it uses. While an employee on salary is paid a set amount a month, no matter how many (or few) hours they dedicate to a specific project, a consultant or outsourced staff is only paid for the actual hours work. The expenses related to a consultant or outsourced staff stops when the project stops. In addition, when a company outsources, existing staff can remain focused on their responsibilities because they are not training or monitoring new employees.

Overall, then, business outsourcing is something a company or organization should seriously consider. Not only will it confine costs, it will also limit losses. It allows existing staff to be more focused and efficient in their current responsibilities. Above all, it can allow a company to be leaner, faster and smarter than their competition. And, after all, isn’t that where the focus of business should be?


Submit a Comment
  • profile image

    Virginia OS 

    10 years ago

    Outsourcing really allows a business-owner to run the business and not have to worry about training new employees to do tasks such as payroll and HR. Nice points you've tackled on here.

  • profile image

    Patty Hobbes - Outsourcing Process 

    11 years ago

    Awesome hub on outsourcing management I have been looking for more information about it because I am planning to hire web designers and article writers for my new project. At the moment my partner and i got 2 article authors employed but we're still looking for additional employees.


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)