Originally written by Partner Content on Small Business
IT and software experts command high salaries in today’s competitive market, so only the largest companies can justify the cost of having permanent employees in this field.
Most people are not qualified to develop software at scale for their business, so outsourcing is the last remaining option to get your project completed on-time and without glitches. Outsourcing gives small and medium-sized organisations access to top talent when they need it, and at a lower cost than having a team of software developers on the payroll.
>See also: Five outsourcing trends for small businesses in 2019
Nearshoring vs. offshoring
According to the e-book, Your Essential Guide to Working With IT Companies, published by Euro IT powerhouse SoftwareHut; salaries outside the USA, UK, Australia, and Western Europe are much lower because of cheaper living costs. This salary difference is where most of the cost savings on outsourcing your software development project will come from.
Offshoring
You will find willing partners in every country you can name, so you need to make an early decision as to how far offshore will work best. Pay expectations will be lower the further from the USA and Western Europe you go.
However, lower costs are not
Tag Archive for Outsourcing
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Whitehall fails its own test, rewarding outsourcers who pay SMEs late
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Whitehall has repeatedly flunked its own test for dropping large government outsourcers who fail to pay small business subcontractors on time.
Under plans coming into force in September, outsourcers which fail to pay 95pc of subcontractors within 60 days risk being frozen out of public-sector procurement, which is worth £60bn a year. The rules will apply to all Government contracts worth more than £5m. As of now, four-fifths of Government outsources would be excluded from bidding on contracts.
However, according to research by Tussell, a data provider on UK government expenditure, Whitehall has rewarded large outsourcers over 200 contracts, despite them have already failed the 95pc threshold. The combined contracts were worth £90bn.
The Ministry of Defence has been the worst culprit; out of 154 contracts worth more than £5m awarded since 2015, 60 have gone to suppliers which did not meet the 95pc threshold.
The Department for Transport also had a poor record: it gave big contracts to 36 suppliers which did not meet the threshold, from a total of 75.
The Department for Work and Pensions has awarded 25 contracts to late-paying large outsourcers since 2015.
Late payments force 50,000 small businesses to shut every year.
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by Aimee Tariq • • 0 Comments
Overseas workers are often more productive than American workers — and they expect lower pay.
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Late payers to small business could be barred from public sector contracts
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Some of the biggest Government contractors face being barred from public sector contracts if they fail to start paying small businesses on time.
From September, outsourcers which do not pay 95pc of small business subcontractors within 90 days could be frozen out of public sector procurement, according to Cabinet Office plans. The rule would apply to all contracts worth more than £5m in the £50bn Government procurement sector.
Outsourcers including Kier, Balfour Beatty, Mitie and Capita have fallen below the 95pc threshold, according six-monthly data collected by the business department, and would be excluded from bidding for new contracts.
Percentage of suppliers paid within 60 days%
Kier82%
Balfour Beatty82%
Mitie88%
Interserve90%
Capita90%
Serco96%
G4S100%
Source: company reporting
Last week, the Government announced that large companies which pay small businesses late could be fined under new powers given to the Small Business Commissioner. But professional associations and payment platforms say the Government late-payments crackdown does not go far enough. All large companies should be forced to pay small business suppliers within 30 days, they say.
“We expect [all companies] to meet the 60-day target and, if they don’t, they may not be considered for public sector contracts,” small business crown representative Martin Traynor told the Sunday Times.
Traynor
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Don't Bother Tackling These 5 Business Functions Yourself
by Serenity Gibbons • • 0 Comments
Every business involves tedious but indispensable tasks. Those are the ones it’s best to outsource.
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Five outsourcing trends for small businesses in 2019
by Partner Content • • 0 Comments
There was a time when money-saving ventures such as outsourcing and offshore company formation were viewed as risk-laced investments. Fast forward to the present day, however, and these two options haven’t just become tried and tested business models; they’ve become the norm. The outsourcing industry by itself was worth $85 billion in 2018. To continue
The post Five outsourcing trends for small businesses in 2019 appeared first on Small Business.
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Here's How to Know When You Should Outsource
by Rashan Dixon • • 0 Comments
Sure, outsourcing can help you cut costs, but smart companies are asking it to do more.
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Thinking of Taking Your Marketing In-House? Think Again.
by Adam Arkfeld • • 0 Comments
How you outsource your services can have a major impact on your marketing department and your entire company, so educate yourself about the pros and cons.
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Outsourcing Is a Shortcut; Insourcing Is an Investment
by Mike Kalis • • 0 Comments
On the surface, outsourcing seems like an ideal way to run a business. But ‘insourcing’ actually saves time and money and builds a lasting culture.
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How to Hire a Virtual Assistant for Your Business
by Holly - The Work at Home Woman • • 0 Comments
By Holly Reisem Hanna If you’re anything like me, you launched your business with the idea that you would be able to spend more time with your family, but as time goes on and your business grows the more administrative tasks that end up on your plate. Now you have less time to focus on […]
The post How to Hire a Virtual Assistant for Your Business appeared first on The Work at Home Woman.