3 Advantages Of Outsourcing You Might Be Overlooking

Estimated reading time: 2 minutes


Outsourcing is an extremely versatile and powerful tool. Everybody knows the more common advantages of outsourcing (for example, lower overhead costs) but there are some benefits you might be overlooking.

Advantage #1: Not Training The Competition

When you’re training local staff there is always the possibility of losing those employees to a competing business. Even worse, they can open up their own business to compete with yours; those same people you trained become your biggest competitors because they know the ins and outs of your business. That’s not the case when you’re hiring overseas and outsourcing your work. Most outsourcing employees are more than grateful to have a job and this keeps them loyal to your business.

Even if they leave, there’s little they can do to directly compete against you from overseas.

Advantage #2: Grow, Don’t Run

Growing your business and running it are two, very different things. It’s common advise that you should be growing your business from the outside, and not running it from the inside. If you don’t achieve that separation you will never be free, and you’ll remain entrenched in the minutiae of the day-to-day operation of your company.

Outsourcing allows you to shift that responsibility so that you can focus on the bigger picture. This is especially important in younger companies. Unless you’re able to walk away from the desk and work on growing your business instead of running it, you will always be stuck to that desk, and your business will plateau.

Advantage #3: Focus

Focused employees are a byproduct of the lower cost of outsourcing from countries with a lower cost of living (such as India or the Philippines). But how does it translate to efficiency? This example will make it clear.

Imagine I hire a web application developer locally (in Malta). He’s a skilled developer so I give him €30,000 a year. His job, with that kind of money, would entail interface design, quality assurance, and the actual development of web applications. Meanwhile, a similarly-skilled developer in India, would get paid the equivalent of €10,000 a year, which means I can hire 3 people for the cost of 1. So now I can get an interface designer, a web application developer, and a quality assurance guy. Sure, I may not be saving money, but now I’ve provided my employees three times as much time to do the same amount of work.

Additionally, where one developer would have to split his focus between the 3 aspects of his job, 3 different people can spend their time each focusing on their own specific tasks.

Check out this book by Steve Scott if you’d like to learn more about using outsourced freelancers to build your internet business:

Amante Reale

I'm a freelance writer specializing in tech, gadgets, security, cryptography and cryptocurrency. Warning: I am armed with very strong opinions and I'm not afraid to use them. Hire me!