By Cheri Stout
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18 Mar, 2024
Outsourcing is the practice of hiring a professional outside a company to perform services that were previously performed in house. Why outsource? Businesses quickly recognize the cost savings as it save as much as 78% in operational costs. Businesses can expect oursourcing to cut labor costs, salaries, overhead, equipment, and technology as the professional contracted utilizes their own equipment and typically work from a home office. A big plus to oursourcing is businesses use it as a strategy to focus on the core aspects of the business and delegating none-core tasks to the outside professional. Who wouldn't want to increase productivity and efficiency? Another key advantage is faster turn around times on the delegated project. Some businesses use this process as a way to move things around on the balance sheet. Hiring a 1099 contractor can benefit the business when it comes to paying taxes. Example of outsourcing: A bank may outsource its customer service operations to focus on other tasks. Another example of outsourcing is an insurance company outsourcing its social media to a virtual assistant or virtual business manager. The bottom line with outsourcing is the time and money savings a 1099 contractor can contribute to the organization. Give it try.