The true benefits of outsourcing

Despite its growing popularity, outsourcing has gotten a bad rap over the past few years. While there may be good reasons for it in certain circles, it doesn’t mean that such strategies aren’t a good idea for small to mid size enterprises.

In fact, I remain a firm believer that in order to run a successful business, some of the best talent must come from outsourcing. If a company doesn’t possess strength in one area, it’s imperative to find experts in that arena in order to capitalize on their expertise. While there’s certainly a cost saving metric to outsourcing in many circumstances, the more important benefit is in the value such professionals can bring to an organization.

At my company, TV Ears, we’ve attained great success because of the partners we’ve collaborated with to assist with various facets of the company. Here are four ways that companies can utilize outside services to help grow their business:

Manufacturing
Firms that build products for companies based on published specifications for a living do it more effectively and efficiently than others.  At TV Ears, we contract some of our products to be manufactured in China and others in California and Utah. Executives should take care here by ensuring that the partner is not only cost effective, but delivers products that meet specific quality standards..  

Finance
Depending on the size and scope of your business, it may not be necessary to hire a full-time Finance Director and accounting team. Instead, a solid bookkeeping service along with an outside CFO consultant may be more effective for less money. For example, TV Ears has been extremely fortunate to partner with Grant Brisacher, CFO of B2B CFO®, who plays an instrumental role in analyzing and controlling our operational costs. These individuals can also provide added benefits by bringing with them best practices from other industries and companies to bear on your organization.

Marketing
Some organizations opt to incorporate an internal marketing and PR department. However, there are plenty of qualified individuals that are well versed in various industries that can help a company just as much, if not more so, than an internal team. A better solution might be to hire an in-house director that manages outside Website, advertising and PR services in a coordinated fashion. The result is a more experience staff for the same – if not less – costs than bringing all those disciplines in house. For instance, our Pay-on-Performance PR and Marketing firm, Stalwart Communications, has attained great publicity for TV Ears by successfully securing articles in various key industry trades. Just make sure to hold regular teleconferences and meetings with them to keep everyone on the same page.

Fulfillment
Orders can be processed using a "drop shipping" service; one that requires the company to hold little inventory on site, thereby tying up a great deal of its overhead in products collecting dust in a warehouse. It’s a solution that has caught in for many product companies over the last 10-15 years, and one that can add direct value to an organization’s bottom line.

Whether a company is looking to cut costs or just secure optimal professionals in a particular industry, outsourcing is still a popular practice among small and large businesses as it should be. Delegating certain responsibilities to skilled experts allows organizations to focus more on core aspects of the business. That’s our experience at TV Ears; where our team concentrates on customer service, sales, and product development as we assign new projects to other capable firms without lowering our standards for success. 

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3 Comments

  • Daniel Nase MBA PHR

    The average person doesn't understand outsourcing and the big picture. They only see the potential for their job being transfered overseas and that creates a lot of fear. Outsourcing is a general term with multiple sub parts. The main ones are offshoring and domestic outsourcing. Offshoring is overseas, which most people think is the general term outsourcing. Domestic outsourcing is hiring a vendor, company on contract or third party to outsource a project, position, division, department, etc. For example, hiring an attorney versus having one in-house is an example of outsourcing, so is hiring a Publicist, CPA, Advertising Agency, etc. Most of the media has been about Outsourcing IT, but my company does almost everything (IT, HR, Software Engineering, Quality, etc.) You can get more information at or in my blog at Thank you!

  • chopper noble

    A Bad Rap... it's hard to compete with equal talent at 1/8th the price. Look at something like AskSunday.com. It's $13.95 per hour and then you look at something like http://www.outsourcedforce.com... and you get college educated professionals working 40 hours per week for $2 per hour AND they are happy to get it. MAKES CENTS TO ME!

  • Daniel Nase MBA PHR

    I'm curious; are you paying them on contract to avoid minimum wage? Just thought it would be helpful to mention that's a big liability. Eventurally one of those students is going to have a disagreement with you and create a bunch of negative PR and possibly legal problems.