'Outsourcing' Doesn’t Have to Be a Dirty Word

"Outsourcing" is considered a dirty word in most industries and inside most companies. Often it's immediately associated with downsizing, loss of jobs and sending work overseas at the expense of the American worker.

But outsourcing is much more than that. If done correctly, outsourcing certain business functions creates efficiencies, allowing small and medium businesses to be competitive with their larger competitors. It also can free resources within larger organizations, enabling it to focus more on their core competencies and revenue growth, which can translate into job opportunities going forward.

When most people hear about outsourcing they envision a massive transfer of customer service and call centers to an overseas contractor as an effort to cut costs—plain and simple. They look solely at hiring cheaper foreign workers to replace more expensive American job functions.

And while there is some merit and economies of scale to these large outsourcing contracts, most deals involve smaller departments, limited business functions and even a U.S. business partner. This is especially true for solution providers.

There are many business functions solution providers outsource to specialized service companies, not just to save overheard but also to be able to focus on what they do best—offer technology solutions and services to their customers. There is no shame in this, as the main goal of the business is to grow revenue.

Many solution providers get bogged down with the day-to-day running of the business—it's not their strength. So it behooves them to look for specialized outsourcing partners to protect their revenue stream, take care of their current employees and create a growth path for their organizations. Add to this the new healthcare regulations businesses of certain sizes are dealing with as a result of Obamacare, and outsourcing not only becomes a smart move, but for some it's now necessary.

Many job functions solution providers are outsourcing include human resources and benefits, payroll, accounting, legal counsel, marketing and public relations and, of course, basic IT functions such as managing software upgrades, storage and print/copy service. In most of these cases, this allows the solution provider to focus on its business and industry, not time-consuming administrative business functions.

In most of these cases, these outsourced functions are being supplied by a regional company or a national service provider with a regional presence. Therefore, the company is still being a good and responsible citizen, creating jobs for the community.

Outsourcing doesn’t have to be a dirty word. Organizations of all sizes can leverage local provider to help them streamline operations while focusing on growth strategies.