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Exploring the Benefits of Outsourcing for the Canadian Economy
By admin, January 8, 2016
Outsourcing is a business strategy that has been around for decades. However, it has developed somewhat of a negative reputation in recent years. Many fear that companies that outsource some or all of their business practices to other countries such as India, China, and many other European countries are negatively impacting the Canadian economy.
Outsourcing is Vital for Small Business Growth
What many people fail to realize is that outsourcing can be beneficial to the Canadian economy and is a sound business strategy, which is not going to disappear anytime soon. “Outsourcing will not go away because the economics behind it are so well-established, says Ron Babin, professor of business at Ryerson University to CBC News.
This is especially the case for small businesses that are just getting off the ground. Many small business owners point to outsourcing as a key survival strategy during the lean start up years.
“According to some Canadian entrepreneurs, in order for a domestic business to grow, it has to capitalize on efficiency, and that could very well involve looking outside the company and sometimes going abroad for workers”, says Alexandra Kazia on CBC News.
New businesses need flexible, adaptive and affordable strategies to help grow their business and compete with other more established competitors in their market. Outsourcing affords them the opportunity to be more competitive.
Outsourcing Helps The Canadian Economy Thrive
There are a number of key ways in which outsourcing as a business strategy can help the Canadian economy thrive now, and into the future:
Maximizing efficiency: Efficient companies are more likely to survive. Efficiently run businesses, with the help of outsourcing, over time, will be able to grow and create new jobs locally. Whether companies need to cut costs, or find a new way to perform a specific business operation, outsourcing can help companies remain competitive, through efficiency, locally, nationally, and perhaps even globally.
Innovation: Successful companies are innovative. Many countries internationally have developed expertise in different areas of business. For example, India is a major hub for new technologies, web design, and internet based business functions. Local companies can tap into these markets and knowledge bases and bring these innovative approaches to Canada, helping their business, and their customers in more innovative ways.
Profitability: Creating jobs and new business starts with small business. However, many small businesses cannot compete or afford to pay local industry experts when launching a new business. This limits their ability to compete and become a profitable and sustainable business. Outsourcing helps to fill this gap by offering access to affordable contractors, allowing new businesses to be profitable, generate more revenue and receive a better return on their investment. It also allows companies to use outsourcing as a means to get their company to a place where they can evolve enough to then hire local experts once the company has found its footing.
Attract global business: Outsourcing is also an exercise in networking on a global scale. As companies develop relationships with other professionals and companies abroad, they are also helping to create new markets for their business, which benefits all parties, including the Canadian economy.
Outsourcing is an effective business strategy that will not only help companies thrive and achieve their business objectives, it will also help the Canadian economy grow and evolve in the years to come.
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