Smallsourcing
posted in Outsourcing News and Top Outsourcing deals |Source:www.portfolio.com
Even small businesses can benefit from tapping low-cost resources abroad. But how to start?
In a global economy, it’s not surprising that most large companies outsource. But within the last five years, more small businesses, from travel agencies to boutique motorcycle manufacturers, are taking advantage of inexpensive labor outside the United States.
Improved communication technology and online job-posting services are making it easier for even single-employee companies to find and manage contractors all over the world. A new class of consultants has even sprung up to provide guidance.
“The virtual company where numerous, if not all, tasks are outsourced has been evolving over the last four years,” said Anita Campbell, founder and editor of Small Business Trends, a newsletter and website. www.smallbiztrends.com “These days you almost can’t afford not to outsource.”
Labor is so much less expensive in other parts of the world, she said, that businesses have a hard time competing if they don’t hire, for example, computer programmers in India, accountants in Ukraine, or manufacturers in Taiwan.
Costs for outsourcing all kinds of tasks abroad can be as little as a tenth of what they are in the U.S. For example, a computer application that might cost $10,000 to get done in the U.S. would cost $1,000 in some Asian countries.
But it’s daunting for small businesses that can’t spare employees to scope out and supervise foreign talent. Nor do they have the financial reserves to cope if vendors don’t follow through on their commitments. If delivery of physical product is involved, there is the added danger of delays in transit due to weather or customs hassles.
“There’s definitely more risk involved when you are a small company,” said John Challenger, C.E.O. of outplacement consulting firm, Challenger, Gray & Christmas in Chicago. “It could potentially destroy your business if you rely on someone who doesn’t deliver.”
Websites like Elance.com, Guru.com, Rentacoder.com, and MyBusinessAssistant.com have made it easier for small businesses to find eager service providers worldwide. Prospective employers post jobs on these sites and vendors respond with bids.
