Outsourcing in Recession Times

From the looks of things, we are going to have a struggling economy in 2008 at best, and a full-blown recession at worst. Financial prognosticators are still mixed on whether or not to call the slowdown a recession, but if this isn't a recession, then I don't know what is. People are strung out on credit card debt and having trouble paying their bills on time. The equity in their houses has diminished and they can no longer draw upon that to shore them up. Their investment portfolios are not generating any supplemental income, either, as the stock market keeps plummeting.

Meanwhile, prices are rising everywhere we shop, including the supermarket. Eating out has become a major extravagance. On the up side, we can get a good deal on a new car and cheap upgrades on our cell phones. There are great sales on clothing, but we buy more than we need. Well, I could go on and on.

Companies in every sector at every level are making plans to lay off employees. How can outsourcing help hold the bottom line? Many business processes that have been done internally can be outsourced, which can save business owners a substantial amount of money. Most outsourcing providers can perform business processes at about 50% of what it would normally cost to do the function internally.

Take accounting and data processing, for example, a typical administrative function in any business. Our company, GO Global, provides high-quality BPO services at a cost that can amount to a savings of 50% to 60%. Besides cost savings, outsourcing is part of a strategic business plan to create a more streamlined organization positioned for growth.

Other benefits are reductions in capital expenditures and fixed assets, an increase in control of operating costs, and improved speed of information and response time. Maybe we need to stop worrying so much about 2008 and look at the bigger picture. Isn't it time to institute change that will put your business in a growth mode for the next decade?

A Strategic Guide to Outsourcing

Good morning,

Small and medium-sized businesses can benefit from the new book we are publishing, The Phoenix Paradigm, Redesigning Your Business for the 21st Century. The book is all about how to outsource your non-core business functions, such as accounting and data entry.

Outsourcing has become one of the most predominant business models of our times. If it is properly implemented, outsourcing can become an incredibly cost-effective business management tool that can streamline your organization and make it more efficient and productive.

The motivation to outsource is quite simple -- reducing costs, access to a strong labor pool, and adding value and efficiency. We believe that the small and mid-market enterprise sector is ready for outsourcing and we want to show them how to do it.

Look for more posts on our new book on outsourcing, The Phoenix Paradigm. The phoenix bird rose from the ashes and so can you.

Arlene Hauben
Director of Marketing
Global Outsourcing, Inc.

Data processing and data entry

Many companies outsource data entry and data processing, certainly to lower costs and to free up time for more core business activities that generate revenue. We are finding, however, that many of our customers will show inaccurate data entries on their books. Over time, errors and inaccuracies can erode financial statements and reduce the value of the company.

If at some time in the future you want to sell your company or need investors, you most certainly want to be able to present sound and solid income statements and balance sheets that reflect the true worth of your business.

In searching for an outsourcing provider, bear in mind that you want references and experience in this area. Find out where the data entry takes place and ask: Do you have professionals overseeing the data entry workers? Can I call these professionals if I want to check up on the entries? Does the data entry provider have a U.S. presence?

Outsourcing data entry is less difficult than most other business processes, but it is a crucial part of the accounting/bookkeeping puzzle, which directly affects the value of your company.