Saving Money Through Outsourcing

With the recent recession, the economy is not what it used to be and business owners are constantly looking for ways to cut down on their costs. In such a scenario, outsourcing seems to be a great way to lower business costs. If you run an online business there are outsourcing options for every element of that business from SEO to copywriting to web design. However, if you do not end up choosing how you go about outsourcing effectively, it could end up costing you money instead.

Tips to effective outsourcing

Not all business functions can be outsourced. In order to outsource effectively, business owners must be aware of which functions they can outsource and hence save money. Here are some ideas to help you in this regard:

  • If your business requires a certain task to be carried out occasionally but you do not have the required infrastructure, it may be much cheaper to outsource those tasks. Setting up the infrastructure would have made more financial sense if the tasks were regular and had to be performed on a daily basis. But creating expensive infrastructure for occasional jobs does call for outsourcing. So, if you were looking for a one off site redesign or a bit of help with a boost in your search engine rankings then outsourcing the job might be worth doing.
  • If a certain business task requires the expertise of a specialist, you should look into outsourcing rather than spending a great deal of money on hiring such a specialist permanently. As mentioned above, if you are creating a website and need it to be designed, it would be much cheaper to outsource the designing work rather than get a website designer on your payroll.
  • Big businesses that have large business processing offices can save huge amounts of money by outsourcing these jobs. While there is a lot of debate going on about overseas outsourcing, there is no denying the fact that it does help to cut down business costs significantly.
  • If your business requires you to set up branch offices in multiple locations for certain tasks rather than administrative work, you could save money by outsourcing these jobs in the specified areas instead of incurring huge capital expenditure.

Once you have identified the business tasks that can be outsourced effectively so as to save money without compromising on the quality of the work, you then need to keep the following general principles in mind:

  • Make sure you outsource to a specialist and not to the person who is offering you the cheapest quotes. Outsourcing is about saving money, but never at the cost of quality. When you look online for contractors, be wary of cheap bids that promise the world for very little money. If it looks to good to be true, it probably is.
  • Ensure that you have a clear outsourcing contract that lists deadline dates, terms of payment, nature of job, as well as any guarantees in case the work is not completed on time. There are online contracting sites that will handle all this for you, such as Odesk or Elance.
  • Research multiple vendors so as to find the best one for your needs.
  • Always pay for your outsourced tasks as promptly as you can, especially if you have found a reliable vendor who is doing a great job for you. If they are particularly good, keep their details for the next time you want similar work done.

By following these tips and suggestions, business owners can indeed save money through outsourcing.


Esther is a business blogger and journalist from Illinois. She regularly blogs about all sorts of business and legal issues, covering everything from business brands to mortgages and from umbrella companies to finance. She also writes for an Illinois premises liability law firm.

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