Indeed, more and more companies are closing and shutting down everyday and that is very disturbing, right? We are now ending the first quarter of 2009, the time of the financial crisis when many economists and experts predicted to be the toughest times of all.

And now as it reaches its culmination and as we enter yet another quarter, we have already seen millions of people losing their job, companies resorting to mass layoffs in order to recuperate for the losses. But if they are losing their manpower how could they operate normally? Well, this is where outsourcing enters the picture.

It is really convenient to have an internal stuff that could better focus on the demands of the business like strategies, people, cultures and politics. Also, when you have an internal staff you would be assured of continuity in terms of the quality of work and your employees would be devoid of vested interests since you hold power over them.

However, in times like this, we need to do some trade-offs. More companies are resorting to outsourcing services in order to lessen their expenses, share risk, help accommodate peak loads and eventually it could help develop your remaining internal staff.

Well, in a nutshell, here’s how. Outsourcing could help you save money since as illustrated in the economies of sale, external service providers could provide more output since they can combine the volume of multiple companies.

Outsourcing could help you share risk, or better known as the “portfolio effect”. By diversifying your portfolio through outsourcing and not investing everything on a single stock, you get to spread the risk thus reducing your total risk.

Outsourcing can also help accommodate peak loads. Remember the saying; two or more heads are definitely better than one? This is applicable in this scenario. Accordingly, by outsourcing your services it could minimize fluctuations in headcount that could result from peaks and valleys in demand!

Lastly, outsourcing can help developed your internal staff. Outsourced contractors can actually be used relieve itself of the less interesting loads or may request others to handle the strenuous peak loads. Such chances give the internal staff opportunity to improve itself.