NMG I.T. Outsourcing Corp.
22F Penthouse BDO Building
8737 Paseo de Roxas
Salcedo Village, Makati City,
a Successful Business
is the concept of taking internal
company functions and paying an outside
firm to handle them. Outsourcing is done
to save money, improve quality, or free
company resources for other activities.
But not many businesses thoroughly
understand the benefits of outsourcing.
It's true that outsourcing can save
money, but that's not the only or even
the most important reason to do it. Wise
outsourcing, however, can provide a
number of long-term benefits. A company
can control capital costs. Outsourcing
converts fixed costs into variable
costs, releases capital for investment
elsewhere in your business, and allows
you to avoid large expenditures in the
early stages of your business.
Outsourcing can also make your firm more
attractive to investors, since you are
able to pump more capital directly into
Companies that do everything themselves
have much higher research, development,
marketing and distribution expenses, all
of which must be passed on to customers.
An outside provider's cost structure and
economy of scale can give your firm an
important competitive advantage. Also
hiring and training staff for short-term
or peripheral projects can be very
expensive, and temporary employees don't
always live up to your expectations.
Outsourcing lets you focus your human
resources where you need them most. A
good outsourcing firm has the resources
to start a project right away. Handling
the same project in house might involve
taking weeks or months to hire the right
people, train them and provide the
support they need. And if a project
requires major capital investments, the
startup process can be even more
Every business has limited resources,
and every manager has limited time and
attention. Outsourcing can help your
business to shift its focus from
peripheral activities toward work that
serves the customer, and it can help
managers set their priorities more
clearly. Most small firms simply can't
afford to match the in-house support
services that larger companies maintain.
Outsourcing can help small firms act
"big" by giving them access to the same
economies of scale, efficiency and
expertise that large companies enjoy.
Every business investment carries a
certain amount of risk. Markets,
competition, government regulations,
financial conditions and technologies
all change very quickly. Outsourcing
providers assume and manage this risk
for you, and they generally are much
better at deciding how to avoid risk in
their areas of expertise.
Outsourcing is the wave of the future.
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