The Relationship Between E-commerce And Outsourcing

The survey also finds that the trend of outsourcing critical business-to-business functions is undergoing a rise in popularity

. In addition, many of the companies turning to outsourcing to help launch their e-business initiatives happen to be small to medium-sized firms. Many of them are now finding out that the outsourcing market can be a confusing place for first-timers. These companies are being confronted by a dizzying array of options, with both advantages and risks alike.

There are several companies that seem to understand the importance and the implications of outsourcing their business. By this, we mean that certain functions such as operations, web development, and web design are performed by people who are located in other locations, such as in other countries. There are two main reasons for this. First, they discover that there are actually plenty of people who can offer specialized services. They have the skill, expertise, and the knowledge to perform high-quality jobs. Second, they provide these services at a much lower rate, compared to hiring individuals to work at their physical office.

Service providers have the group of people and even the technology to be able to cope with the demands of their clients, thereby removing the burden from them. On the other hand, service providers will be able to provide a good payment scheme to mid-size and start-up companies. This way, companies who outsource will be able to experience a good ROI and profit even at the early start of the business. Most of all, outsourcing companies these days tend to grow together with their clients. They can also come up with a team that is only fitting to the size of the company.

Challenges of Outsourcing

Despite the many good things about outsourcing, there are risks associated with it. These include the following:

You can depend too much on the supplier. Searching for the most perfect supplier for you can be quite a challenge. That's why whenever you find one; you tend to stick with them. This will only work if the company you've chosen has a proven track record. If not, you're in danger. There's a huge possibility that it

will be very difficult for you to come up with a backup plan, just in case the service provider suddenly decides to let go of a very critical project. You cannot also immediately change your service provider if you don't like their services.

by: Lawrence Perry

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