More small businesses are outsourcing

More small businesses are outsourcing tasks these days because technology has advanced to the point of professionals being able to work from anywhere in the world, coupled with the availability and accessibility of extremely qualified professionals and Outsourcing Companies.

Outsourcing Companies come on board as subcontractors and save the small business owner the burden of paying overhead associated with payroll taxes and expenses such as health insurance and worker's compensation, as well as the space constrictions that growing a company in-house can present.

Taking the first steps toward outsourcing can be time-consuming, but figuring out how to build your business with help from outside professionals can offer increased efficiencies and economies of scale. Progressive entrepreneurs realize the unstoppable power of outsourcing to handle aspects of their business that are essential but simply don't make sense for them to deal with personally

Small business, augmented by a global pool of human capital, can compete directly with the biggest players in their space, and win.

When to Outsource

For every company, the right time to outsource is different. Some businesses have in-house staff to handle daily activities, but may need outside help to undertake new projects that don't warrant another full-time employee. When you and your current employees are unable to manage the day-to-day business of your company and build the business satisfactorily, it may be time to consider outsourcing.

What to Outsource

Before choosing which tasks you can farm out, take a hard look at your business and determine your strengths and values. "Small businesses must identify their core competencies and capabilities and focus their own R&D, talent management and resources on being the best in their industry at these," says Marc Resnick, Ph.D., a small business consultant and director of the Institute for Technology Innovation at Florida International University.

A small business that focuses on product design should not outsource anything related to developing its internal design talent or their design activities. But they should investigate all opportunities for outsourcing

Before handing over the reins, be sure you're working with the right partner. While technology makes it much easier than it once was to find capable, reliable outsource providers, the selection process is still vitally important. Online networks like LinkedIn and Twitter make it easy to expand your personal networks and to ask for recommendations.

Identify exactly what performance metrics are important for each task you want to outsource. Some outsourcing providers focus on speed at the expense of quality or vice versa. This is fine as long as there is a good match between what the small business wants and what the provider specializes in. But many small businesses don't realize that there are large differences among outsourcing providers and select the wrong ones. An open and clear conversation with potential contractors regarding these key performance metrics is essential.

Communicate your expectations and the steps included in the job clearly; never assume that contractors are thinking what you're thinking.

It is very important that the requirements and expectations are laid out in the beginning, and that nothing is left to assumption."

Your final responsibility as a successful outsourcer is to step back, relinquish control, and allow your new team members to do the job you've hired them to do. You need some measure of trust If you are going to micromanage all of your outsourcing.

Realize that removing yourself from low-level operations is the smartest investment you can make in the long-term success of your business."

Facing the Challenges

While outsourcing can yield great advantages for a small company, it's not without challenges. If you choose to work with offshore providers, language barriers and time zones can be difficult to deal with.

However, focusing on making your own communications clear can help overcome confusion for those who are not native English speakers. And time zones create more opportunity than inconvenience, as you can extend your productive hours by handing tasks over to someone during their workday. Assign a task at night, and awake to find it complete and waiting for you.