Companies That Outsource And Why
Howdy! A Portland, OR native, I currently reside in the northern San Diego County area as a freelance writer. When I'm not sipping coffee, soaking up some rays and writing or playing guitar you can find me at the hot yoga studio.
This article will discuss companies that outsource and why, including the 3 most compelling reasons why you should outsource, and things companies fail to consider when outsourcing, along with a few comments on the personal benefits of outsourcing your jobs to people who actually love what they do.
Which businesses are hiring in the US?
- Extensive in-house manufacturing
- Independently-owned brands
- The low number of employees
- Large variations in quality
- No corporate image
- High-end manufacturing
- The cost to make a product by hand
- The cost to make a product by machine
- Bigger margins on the expensive products
- Most likely the same end product in each department
- Relatively low pay
Know your industry?
Smart entrepreneurs who understand your industry are going to find a lot of mistakes that you don’t see in your industry, and then make them right.
These mistakes are overworked employees, ineffective business practices, poor quality, expensive tools, and unrealistic expectations.
Once the mistakes are fixed, and you begin producing the same quality at lower prices, you will rapidly get rid of your overworked employees and buy a lot more coffee.
Companies that make this mistake are left with free time to pursue their own dreams or business, and some find their business takes off, and they sell.
What do you see as mistakes in your industry?
Our goal at ScreenPrintStudio is to reduce the amount of waste in our lives by offering the best quality prints at the lowest prices to customers.
While we believe many organizations in the world lack compassion or integrity, we also believe that there are a lot of companies that are run out of compassion, integrity, and love.
A big part of our process is to always try to be a better company, even if it means we won’t be successful today. We think this may be part of the reason we have a great reputation.
But we also think it is a big reason we are so successful.
The reasons for outsourcing
1. You can compete with everyone on price, and you can’t compete on quality.
Every company is a startup, with limited capital. Since you have limited capital, you have to focus on quality and lower your costs as much as possible, if you want to compete on price.
Companies that are truly trying to compete on quality have many more competitors than those who are just trying to compete on price.
When you bring in low-cost labor you either have to compete on quality, which is hard, or you have to lower the quality of your product.
You either have to compete on price, which gives you a larger number of competitors, or you have to lower your quality.
The low-cost labor offers you lower quality and lower cost.
It is the reason many startups struggle, but they have to compete on price.
However, you don’t have to compete on quality to be successful. You can compete on price.
You can outsource a high-quality product that uses high-priced materials, and you can outsource an inferior quality product that uses low-cost materials.
If you can’t produce high-quality work on your own, or at a competitive price, you probably will never be successful, as long as you limit yourself to your own industry.
2. You can’t hire and train high-quality employees.
If you are running an all-in-one business where you do everything, it is impossible to find highly-trained, experienced employees in your industry.
If you are selling to large customers, the employees that are with you when they buy don’t help you to service your customers.
If you have customers who buy a high-cost, low-quality product, they will ultimately have to leave your company.
You will have to watch your customer base go away and leave you to deal with the sale and the customers.
If you have no customers or few customers, your employees can’t help you to sell your product to others.
3. It gives you flexibility.
Running your own business is like walking a tight rope. You need to be able to jump up to build an 8 x 10-foot product.
Your employees will need to jump up to fix a broken order. Your employees will need to jump up to service an unhappy customer.
Your employees will need to jump up to save you from a bug in your software. Your employees will need to jump up to keep you from going out of business.
Your employees will need to jump up to launch a new product.
Some businesses work better when they are run as a small, entrepreneurial unit that doesn’t have any non-owner employees.
They tend to be good when they have fewer people, as long as each person knows his or her specific task and is highly skilled.
But every business needs some type of employee, or they will fail. If you can’t find people who are great at something, even for very small amounts of money, you have to consider outsourcing the work.
If the work is so complex that it takes years of training to be good at it, it is probably worth outsourcing.
You can often find people who are “great at something,” for very little money.
If you are an Amazon, Apple, or Google, you are paying a lot of money to train people who are great at doing specific things that they are only going to do for a short time.
It is probably better to pay the training cost than it is to spend a lot of time and effort to train high-quality employees to do things that they don’t do well.