SMEs & SME you name it



in my course timeline so far i have found out that not only what you have in business matters  bah also other prerequisites in the environment...




The growth of Smes are majorly influenced by lots of changes in the business world....


Marketing...Pricing strategy ...... Outsourcing...Cloud services ....Cyber attacks ... SEO......   mmm name them ...

trouble begins when you find out that what you thought was going to be perfect for you turns out that you need a second option...

Outsourcing i Call It ..allocation of specific business processes to a specialist external service provider like my specialty is Numbers ..

This is usually done, sometimes, because a business or an organization cannot take care of all aspects of that business process and it has to necessarily look for someone else to do that work. Once this task is outsourced to a service provider, the provider assumes total responsibility for completing the job. Outsourcing is being done for a number of fields including IT outsourcing, data center operations, desktop and help desk support, software development, e-commerce outsourcing, software applications services, network operations and disaster recovery.....

Nevertheless outsourcing comes in to cub competition and cloud computing  as wellas forge ahead and a good competitive strategy ......

However,,,

Advantages

• Financial: One of the greatest advantages of outsourcing is the financial advantage. By outsourcing, you do not have to recruit employees and keep on paying salaries or wages continuously to them. Outsourcing can result in substantial reduction in overheads in the form of salaries, insurance, and taxes.
• Time: Another advantage is that you also save a lot of time. As the outsourcing firm would be concentrating only on one specific task, they end up doing the task faster and better. Moreover, the people in your organisation may not be used to doing these things while the people employed in the outsourcing firm may be used to and may be proficient at it. The extra time can be used by your organisation to do other important things.
• Growth and development: You can save time and energy and concentrate on business development and building a better relationship with your customers. Outsource those areas that your organisation is weak at and feels it is a headache.
• Reduction in expenditure: Outsourcing would definitely bring down your expenditure substantially. You do not need full-time employees whom you have to pay full-time salaries or wages. You would be saving on salaries, bonuses, vacation, and insurance. Reduced expenses, from not having full-time employees, may give you the competitive edge that could mean the difference between success and failure, profit or loss.

Disadvantages

• Management: Even though you may be saving on salaries of employees, you would still have to manage the people whom you outsource, and follow up for completion of the projects, to your specifications and your quality, on time. You will discover that the people to whom you have outsourced the job may be getting it done in another country. Managing people in another country altogether may, sometimes, be too much of a handicap – with various factors coming into play. You may sometimes, feel that you are at your wit’s end trying to give instructions, take feedback, and advocate changes. You may find yourself bogged down by language, cultural, and time-zone barriers.
• Loss of intellectual property: It may so happen that when you outsource the job to other countries, some other people may steal the idea and use it themselves. So be careful of the intellectual property that you are parting with.
• Success: The people to whom you outsource may not be bothered or interested about the success of the task. They would only be bothered about completing the work and receiving payment, but not concerned about the quality of work. If the finished products do not meet quality standards, the entire manufacturing process must be done once again by a different vendor.
• Loss of sales: If the outsourced product does not meet the quality, your company will lose sales for the month due to non-availability of the product and also incur a loss.
Many of the disadvantages and headaches of outsourcing can be avoided by choosing the right company for outsourcing by studying their background and track record.