What is Outsourcing?

Outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees. Often the tasks that are outsourced could be performed by the company itself, but in many cases there are financial advantages that come from outsourcing.

Many large companies now outsource jobs such as call center services, e-mail services, in addition to recruitment services, benefits services and payroll. These jobs are handled by separate companies that are specialized in each service.

Small business companies also outsource jobs. Small business owners typically spend up to 25 percent of their time handling employee-related paperwork. They do not make the most productive use of their time.

Small business owners can focus on what they do best - and in the process they can improve productivity and save some money as well.

If you own a business, regardless of the size, you probably spend a large amount of your time dealing with employee paperwork.  This is especially true if you own a small business that has no HR department. In this case, you may be the one person responsible for all employee paperwork. In fact, you may spend as much as a fourth of your time dealing with this paperwork.