All About an Outsourcing Job

What comes to mind when you hear or read the word ‘outsourcing’? What about ‘outsourcing job’? Depending on who you are, you may or may not have a good reaction to these terms. But the outsourcing we are going to talk about in this article is the kind that spells relief to a hard-pressed business owner or entrepreneur such as yourself. This kind of outsourcing is built around the model of efficiency – the best possible outcome for the least amount of resources. Below I will explain to you the concept behind an outsourcing job and how you can use the outsourcing process to streamline your business.

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What is an Outsourcing Job?

An outsourcing job is exactly what it sounds like – a job that results from a company outsourcing some part of its operations to a third-party contractor. When people usually hear this term, they think of call center jobs in India, or factory jobs in Thailand. This is certainly part of it, but an outsourcing job does not have to be limited to those concepts. Some other types are:

A software engineer in New Delhi designing software for a company in Ohio;

A payroll firm in Buenos Aires overseeing the payroll accounts of a law firm in Texas

An IT specialist in Hong Kong maintaining and repairing the website of a non-profit organization in Boston

As you can see, an outsourcing job can take many different forms.

What are Advantages of an Outsource Job?

As mentioned above, outsourcing is all about efficiency. Efficiency means getting the most value from your resources, or, the most output from your input. To make your business the most efficient it can be, you need to take advantage of something called leverage. In layman’s terms, leverage is the ability to maximize your benefits from a small amount of effort. For example, if you can perform 10 hours of labor a day, and each project takes 2 hours of labor to finish, then you can finish 5 projects a day. If you hire 2 workers, however, and each one can perform 10 hours a day, then you can fulfill 10 more projects – resulting in more money. This is leverage.

As you can see, the main advantage of an outsource job is leverage. But, efficiency also depends on time. While it may help to do certain tasks yourself, you do not have enough time to devote to every aspect of your business. Sooner or later, someone else will have to control one or more aspects of the process so you can focus on others. For example, if you are very good at, say, marketing, and you have to take extra time to make sure your payroll accounts are in order, you can spend more time with marketing (thus maximizing your strength), and let other people (such as accountants) handle the payroll aspect.

All of this also ties into money, yet another facet of efficiency. If the minimum wage where your business is located is $10, then your basic accountant costs $10 an hour ($400 a week for a 40-hour week). If an accountant in, say, Cairo can do your work for $2 an hour, that saves you $320 a week – which is $16,640 a year!

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Filed under: Outsourcing

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