About the author: Dan Cannon is the Lead Web Applications Developer for Nicasio Design and Development. Nicasio provides web based solutions for both individuals and businesses. Nicasio is highly proficient in WordPress design and development. Nicasio also owns and operates the E-Commerce solution NicE-Comm.
There is a lot of talk about the economy here in the United States and its current state (or lack thereof). During trying economic times there may be a temptation to begin outsourcing some of your internal operations. This can be a great way to cut overhead at almost any business. However, if you are thinking of outsourcing work to overseas contractors, now may not be the time to do it.
But Why Not?
With overseas prices lower than they are in the United States you may be asking yourself why not outsource to overseas.
The main reason is fairly simple Economics 101. You are removing funds and jobs from an economy that is already desperately low on both. When people in your country don’t make enough money they spend less. When people spend less businesses start to hurt. This means your business.
It’s a Band-Aid on a Broken Leg
Outsourcing some of your operations overseas may seem like a great way to cut overhead and increase your current revenue stream. This is all well and good. Now what happens when more and more people begin to do this? There will be fewer and fewer consumers in the United States. And the state of business in this country will be worse than when the decision to outsource was made.
OK, I Get It. What Do I Do?
Glad you ask. I am not saying that you should not outsource some of your operations. When businesses focus on their core competencies they tend to succeed more than businesses that tend to be jack of all trades. Think about it. If you run a consulting operation it is probably safe to say your time would be better spent doing something besides vacuuming your office and scrubbing your toilets. So, what do you do? If you are anything like many businesses, you hire a cleaning agency. This is an example of GOOD outsourcing. You are cutting out a task that your time is not well spent doing. It also doesn’t make sense for you hire a full time cleaning crew when your office only needs to be cleaned a few times a week. By outsourcing your cleaning duties you are providing jobs to local people in your area and they are providing you with a service that you couldn’t do any cheaper on your own. These people will then go and spend the money you paid them in the United States at other businesses in your area. When these businesses have capital to spend and need some advice who are they going to come to? There is a good chance they are going to call your local consulting firm. Your money has come full circle and you have a clean office, your local retailer has gained some additional business insight and your cleaning crew was able to buy the things they needed.
So, don’t be afraid to outsource operations to save your organization money. Just try to do it in such a way that it will benefit your business now AND in the future.
Well now it’s time for a shameless plug. If you want to outsource any of your web design, web development or e-commerce needs to a firm that operates in the US, feel free to Contact Nicasio Design and Development today.