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Article
3: What You Can Outsource
Identify your core business. Outsource everything else.
That’s the advice of Frank Casale, chairman and CEO of The Outsourcing Institute. In an interview with Fortune Small Business magazine, he gave this example: “People think Nike’s core business is sneakers, but Nike says it’s product development and marketing. It outsources manufacturing so it can concentrate on creating and selling new products.”
Small-business owners don’t usually hold the financial resources necessary to outsource all non-core operations. But, even a solo entrepreneur can name one activity that creates a bottleneck for the business. Make that bottleneck your target for outsourcing.
In reporting on the 2001 Outsourcing World Summit, Michael F. Corbett & Associates, Ltd. cited information technology as the top outsourcing project, followed by accounting and finance. The report also stated that “outsourcing is increasingly being applied to one of the most sensitive parts of a company’s operations—marketing and sales.”
Here are some suggestions to help you identify areas in you operation that might lend themselves to outsourcing:
Business support services
Agencies and independent contractors can pay your bills, act as an answering service, maintain your company’s mailing lists, provide transcriptions and offer a host of other backup services. You can purchase the services on an on-call basis, for which you usually pay an hourly rate. By paying a monthly retainer for services, your work will be top priority when you need help.
E-commerce functions
Warehousing, fulfillment, credit card verification, shipment tracking and other online sales functions can be outsourced to an independent systems integrator. Look for an e-fulfillment specialist with technology expertise and an experienced track record, as well as a firm that has the ability to grow along with your needs.
Information technology
Suppliers can troubleshoot and solve problems, oversee networking, address computer security issues and provide entire systems. Insist on a contract that guarantees confidentiality, security and fast response.
Payroll processing
Printing and delivering checks is just the beginning of the services you can outsource to a payroll processing firm. Payroll companies, with their up-to-date software, can also help you adhere to complex tax obligations. Some firms, such as ADP, take their services a step further by providing benefits administration and human resources management.
Other outsourcing opportunities to consider include:
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