In-house versus Outsourcing

Outsourcing manufacturing and services, especially to foreign countries, has become taboo. However, Entrepreneurs might want to seriously consider outsourcing certain services as a business strategy.

In the current economic climate as entrepreneurs grow their businesses curtailing or minimizing overhead is important. The philosophy of doing everything in house might need to be reconsidered.

As a means of cutting fixed costs and making them more variable, Entrepreneurs need to look at the benefits of outsourcing in-house services such as payroll, marketing, training, human resources, IT, design, engineering and project management. Outsource expertise in these areas may be more cost effective than developing competencies in house.

So the next time you think about creating a function or expertise in house, ask yourself if you would be better off outsourcing such services.

Ravi Patel

www.patelCFOservices.com

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