Comparative advantage is an evergreen economic principle, developed by David Ricardo, a British economist. This economic principle promotes outsourcing and explains why companies and countries should embrace this business solution. Outsourcing company provides valuable business services that ultimately lead to cost saving (as the key benefit) and tons of other benefits.
Once you have more than you or your in-house staff can handle, you will be better off outsourcing some of the tasks. Perhaps you’re wondering why it is the best thing to do in this case.
Well, you may not know, for every hour that such additional (and usually tedious tasks) consume, there is an opportunity cost. Instead, you and your in-house employees should focus and spend time on the higher-value activities and tasks.
Save Time with Outsourcing
It is important to say that outsourcing is not only for companies. As individuals, especially workaholics, you can create time out of your busy schedules to rest, entertain yourself, catch fun and spend more time with your loved ones when you learn to outsource some tasks such as cooking and general house-keeping. Ultimately, the improved health condition, bonding with loved ones, and other benefits that come with outsourcing tasks cannot be compared with the money you pay to the outsourced service provider.
It works the same way with companies, whether small, medium or big companies. Often, companies are absorbed into day-to-day tasks that add little value to the company. As a result, they pay little attention to key tasks that make the company thick and position it for better competition.
But, by getting the service of an outsourcing company, such distractive tasks are handled by others who are even better positioned (in terms of skills and/or equipment) to handle the tasks more successfully.
And, once you outsource those daily tasks, your eyes will be opened to the more valuable tasks that have been neglected over the years, and what the neglect has caused the company – e.g. losing valuable customers to your competitors and earning less income than you should have done.
Why Your Competitors are Excelling More and Why You Should Follow Their Footprint
You probably didn’t notice that a good number of your customers have left your company for your neighbor who offers them better customer service. This is because you and your employees were absorbed in administrative and other tasks that do not offer competitive advantage.
So, while you’re so busy with such distractive tasks, your competitor was busy mapping out strategies to increase their customer base, hence their total earning. And, the major secret or strategy adopted by your competitor is to outsource the tasks you’ve been absorbed into, so that they can focus on what works best in attracting and retaining customers.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.