Several factors determine whether or not outsourcing specific tasks is the best option for your company’s needs. Scalability is one of these.
At the core of the scalability factor rests the theory that you only pay for what you use. This means that a small business can save a significant amount of money that would otherwise have been consumed by retainer costs. Several advantages exist to working under a scalability model:
- Allows for businesses to outsource only that portion of projects which may prove expensive to manage internally
- Augment existing staff or services during identified high-traffic or peak activity periods to better service clients and customers
- Ability to draw on and access key expertise areas when needed for specific aspects of projects or services without having to absorb costs for that expertise full time and “in house”
Determining Scalability
Scalability, by itself, is a major factor in determining what to outsource and to whom. The extent to which a vendor allows you to scale back operations can also influence the decision to outsource. Other factors that influence outsourcing on the basis of scalability could include some of the following elements:
- Scalability inherently requires some degree of automation. A vendor with high investment in the latest technology and understanding of how to integrate business requirements with tools and applications is best suited to offer scalability
- Scalability may not be applicable to all processes; in services that are people-driven, it may not be possible to scale back operations at all
- Understanding how much to scale back, and when, can be determined only by a vendor with significant maturity or experience
- An organization or a vendor offering scalability can demonstrate breadth and depth of services and have process-driven solutions with proven methodologies and strategies
- Executing scalability requires the existence of a quality infrastructure; To ensure a steady stream of business continuity, it is essential that the documentation process be thorough and structure applied at all stages to ensure success of the project time and again.
Scalability as a Reflection on the Vendor
A vendor who has invested significantly in training and coaching its manpower can ensure high returns for its clients by ensuring quality work. The combined experience of efficient automation with experienced human resources and input positions a vendor to offer relevant client solutions, consistently and repeatedly.
Satish Patel, CPA
President, Analytix Solutions
Satish Patel, Founder-CEO of Analytix Solutions, has more than two decades of experience as a CPA. He has also advised small and mid-sized businesses on diverse matters such as valuation, accounting, and finance. His experience extends to raising capital and arranging for finance from angel investors.
