Why outsourcing is good for local economies
The cons of outsourcing have been reiterated, exaggerated, and downplayed in almost every possible way as our world moves ever further into a global economy. Despite the natural tendency Americans have to vilify it, outsourcing is good for local economies – specifically for small businesses and startups.
Let’s look at local economies like a garden. You have larger, established plants that can get the resources they need due to their size – plenty of leaves to capture sunshine and deep roots that provide stability. On the other hand, you have new seeds that are ready to be planted, but they need special conditions to sprout and grow. There’s the seed coating that initially needs to be broken through, and then the tiny plant must begin setting roots before it can do anything else.
Small businesses are the seeds of the economy. They require special conditions to get started, but can grow into large and established companies that provide for those around them. There’s the initial break through phase where a lot of money is invested in getting the doors open, products and services set up to sell, licenses, and more. Once that is complete, the business begins focusing on stable and sustainable growth in order to put down roots.
Outsourcing can give startups and small businesses the initial boost they need – just like a seed starter kit. Instead of planting seeds and hoping they will grow, gardeners use seed starter kits when planting to give the seeds the extra nutrients and moisture they need at the beginning of their journey.
Small businesses often start off without the capital for full-time, local employees, let alone a developer to create a website, app, or other expensive but necessary technical facet of doing business. Additionally, office space, equipment, and benefits are a harsh reality for one-man shops. Hiring an employee that is remote or overseas allows work to be done, at a lower and more manageable price that doesn’t include the costs of a physical office. Many businesses would not have been started or be able to stay afloat if not for the opportunity that outsourced work brings.
Eventually as the business grows, capital is created to hire local, full-time employees. These employees either work with or replace outsourced workers, providing different experience and expertise. Additionally, the growth of a new business means more local investment opportunities once there is enough capital.
In the end, all economic models have their pros and cons. What that means is we should utilize flexible options such as outsourcing in order to achieve our goals in the business world and our local economies.
If you’re a small business that is interested in saving on expenses with outsourced employees, try out our cost comparison calculator for in-house and outsourced development work.