June 09, 2005
Guidelines For Start-ups to Use Outsourcing for Efficiency
A recent editorial in the Arizona Business Gazette touts the cash flow benefits of outsourcing. According to the article, the high cost of start up, particularly with regard to manufacturing, can be entrance prohibitive for many companies. To cut the initial start-up, many companies initially opt to outsource while they build up the volume and cash flow necessary to move work in-house. The article also outlines a number of key guidelines for the start-up outsourcer including creating a schedule of subcontractor inspections, revisiting the contract periodically, using blanket orders rather than specific monthly orders to minimize transactional costs as well as many others. azcentral.com Reports:
When a business uses outsourcing most efficiently, it pays only for services used rather than having full-time employees performing at part-time levels. This also reduces the size of the building or office space required. Furthermore, outsourcing lets the company concentrate its resources on the only activites that will generate revenues: marketing and sales.
Read More: Outsourcing can boost new firm's cash flow
--
Did you enjoy this post?
Comments
The comments to this entry are closed.
« Human Resources Outsourcing Leads BPO | Main | Indian BPO Identifies KPO and Others for Future Growth »
Recent Comments