Outsourcing is quite common in large businesses, mainly done with the aim of cost cutting. Small businesses also outsource, but mainly because they have no other choice. In case of a small firm, outsourcing is done through negotiating contract agreements with vendors who take complete responsibility for the production process, people management, quality, customer service, key asset management, etc. Outsourcing helps small and medium businesses (SMEs) not only in cutting down costs, but also helps in avoiding the legal obligations of maintaining a permanent employee base.
BusinessDay lists out in detail the various ways in which outsourcing can help an SME. Top management officials from various organisations have also outlined their views on outsourcing. Click here to read the entire article.