How Can Outsourcing Help Small Businesses?

Outsourcing is a thing of the 21st century. Before the Internet era, people used to traditionally hire people for the job by filtering and interviewing qualified candidates, and registering these new hires as business employees.

However, the trend changed when the Internet began to boom. Subsequently, more people were laid-off from their jobs as a result of the Housing Bubble of 2008. From then on, it was a perfect opportunity.

What is Outsourcing?

Outsourcing is the practice of hiring somebody to do specific jobs normally assigned to typical employees, for a period of time. Instead of hiring an employee, you hire somebody considered a third-party source such as a freelancer, or a freelance recruitment agency.


Large companies outsource their tasks to cut costs and control expenses. Since hiring freelancers are cheaper, they are greater alternatives for small business owners starting out in the field.

In the long-term perspective, freelancers are useful and efficient. For example, you don’t have to pay for food and transportation allowances since most freelancers have their own home offices. Aside from reducing business expenses, the following benefits of hiring freelancers include:

  1. Increased Efficiency

You only have to hire someone to do a specific list of tasks. Therefore, you pay only for the amount of work you need to get done. In a typical office setting, most employees have a lot of downtime when it comes to working. By hiring a freelancer, you can set up a check list of things to do and pay accordingly once the services have been rendered.

  1. Starting Work Early

One of the important benefits of hiring a freelancer is that you can start working on projects earlier. Compared to hiring directly from the job market, you can start immediately after you hire somebody who is fit for the job description.

  1. Shifting Focus to Important Matters of Business

To outsource business tasks results into greater time and focus for a small business owner. Since the tasks are being done by somebody else, you can focus your attention in developing your skills and talents or to participate in selling bazaars to get income flowing into the business.

  1. Decrease Labor Costs

Hiring directly entails many costs. These include posting job ads, waiting for applications, sifting through the qualified persons, and interviewing them for the job. This works well if you need somebody long-term to work in the business. Otherwise, temporary hiring is very expensive.

  1. Enjoy a Wide Array of Services

Most freelancers are equipped with diverse skills and experiences. You can use this to your advantage by hiring somebody who is capable of doing more than one kind of task. For example, you can outsource administrative jobs to a freelancer who also designs images or edits videos.

This can be helpful to know since you can pay less compared to hiring two different individuals for the job. However, you need to pay up in this case since your freelancer also has added value for knowing additional skills that you need to utilize in your business.



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