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Outsourcing – The benefits to small and large companies

Large and small companies all over the world outsource a particular part of their business for different reasons. There is no argument though; outsourcing provides outstanding benefits to companies of all sizes. Here is a list of a few benefits:

1. Control Capital Costs and Cut Labor Costs: Outsourcing takes your variable cost and makes them a fixed cost. That way businesses can invest elsewhere and limit the large expensive in their start up stages. In terms of labor costs, business owners have proven it time and time again that just because you can doesn’t mean you should. The time it takes an employee or business owner to figure out how to start a specific project, he or she could have had it done by Outsourcing it to the experts.
a. Example: A Fitness Equipment Dealer wants a website for his business, and along with one of his/her employees, they decide they can build it. A year later, the site is almost done and the manufacture informs the dealer of all the new products coming out and the old ones are discontinued. A waste of all that time and money!

2. Focus on core business: As employees workloads increase with non-core business tasks due to increasing business, the business focus can shift away from the core activities. When business outsource they keep their employees focus.
a. Example: The gym is growing and you need a better way to communicate with the members. Outsource a company to develop e mail and social media campaign instead of trying to do it yourself!

3. Level Playing Field or Even Give Your Business a Competitive Edge: As start- up business and/ or small businesses strives to grow and compete in competitive markets, they need to look as professional as the competition.
a. Example: Don’t through your new business website together on go daddy just so you can have a website. It is the first impression to clients and prospects.

4. Start New Projects Quickly: Coming up with an idea, hiring the staff for the idea, putting the procedures in place all takes time and money
a. Example: A Fitness Manufactures wants to develop Custom QR Codes that link to Instructional Videos. Do they know everything that goes into that project? It’s not just create a video and slap on a QR Code.

5. Reduce Risk: Business are constantly pushing the envelope with new ideas; before investing in staff, outsource the project and see it the project will generate revenue.
a. Example: Let’s build a shopping cart for the gyms website. Who will manage it; ship it; handle returns; credit card compliance issues, and so on.

6. Get Access to Skilled Expertise: Jack of all trade masters of none. Outsourcing enables the business to get experts in the field.
a. Example: A health club owner has some knowledge in website design; he decides he needs a new website and is going to build one in his spare time. The problem is he has not spare time because he is managing his health club, creating sales and marketing materials, doing the accounting and so on.

All these facts and example can be found in the Health & Fitness Industry. The question is why are they so prominent? If outsourcing is a common practice for Fortune 500 companies why don’t more health and fitness companies take advantage of outsourcing?

For more information on outsourcing services contact Tim Sebold @ or visit for all soOlis’ business products and services.