The truth is that the cost of outsourcing is in most cases a lot lower than hiring locally. Statistics have shown that in average you can cut around 15% of costs through outsourcing. There are also fake statistics out there that state you can save around 60%. This is not true. 15% is the amount you can realistically expect to save while also keeping at least the same level of quality. If you save more money it usually means that you are sacrificing something, usually quality. Now the tricky aspect stands in the fact that you can outsource a lot of your company’s activities. For instance, you can outsource tax returns, project management and asset management. In this case we have 3 aspects of your company that will save you money. This is the only way in which we can reach higher saving amounts than the 15% mentioned above.

Contrary to what you might believe, the cost of outsourcing does not only relate with paying money for a particular job. In fact, sometimes you might end up paying more when you outsource. Everything has to be build around profits, time and taxes. Out of these 3 factors, taxes are usually overlooked. You need to check outsourcing taxes because they might add up to your cost of outsourcing and make it less profitable.

The time factor is the one that most successful business owners take into account the most. Sometimes it can be a great idea to have higher costs of outsourcing if the job is done faster and better. On the long run this actually builds higher profits because you can handle more projects at the same time and when you do the math you can end up with bigger gains at higher amounts of money paid for outsourcing.

A lot of individuals take matters seriously but fail because of a lack of knowledge or proper research. It is your responsibility to research outsourcing vendors and choose the ones that will better suit your company’s needs. In order to do this you have to properly analyze the 3 factors mentioned above. Taxes are easy to handle in most cases but analyzing profits in a comparison with time can be quite difficult. Sometimes you will have to learn how to build a professional outsourcing strategy in order to take advantage of the cost of outsourcing and increasing revenue. We recommend that you take a closer look at every single factor involved so that you can maximize profits.