Sunday, March 09, 2008

Outsourcing for Small and Medium Businesses

Outsourcing is nothing new for big companies and multinationals. We all use everything from software to cars that were designed in the USA and built in China, Singapore or wherever the labor is inexpensive, talented and eager to win their share of the billions in trade the US outsources every year.

Outsourcing does more than cut costs: It enables the firm to focus all of their efforts on their core business. This way, companies like Microsoft can focus on product research and design while using more cost effective offshore firms to program their ideas into ready-for-market products.

The lesson learned from offshoring is that firms like Microsoft and their offshore partners mutually gain economies of scale by focusing efforts on specialized skills—an idea that is at least as old as Adam Smith’s The Wealth of Nations. And then there’s the cost savings...which makes for headlines that are easier to understand (and rebuke).

So if outsourcing is such a good idea, why don’t all firms outsource everything?

Well, soon they might. But for now, the challenges of outsourcing are numerous and significant. The most common problems include:
• Losing control over mission critical support services.
• Difficulties coordinating work due to different time zones, cultures and languages.
• Managing quality and deadlines.

For large companies, overcoming these obstacles is easy. Microsoft went to India, hired the best talent available and invested whatever it took to create a world-class facility in Bangalore. Small and medium companies don’t have these kinds of resources—and they don’t need them.There is growing group of outsourcing companies that are helping small and medium sized businesses.

We are one of them.

We make it cost effective for mid-market companies to run like the big boys. To learn more, please visit us at http://www.integrantinc.com/