Is outsourcing overseas worth it for small businesses?

Many small businesses are considering outsourcing their work overseas to save money on their marketing, development, and other labor costs. Outsourcing is a viable option in many cases, but not all. If clients know exactly what they want then outsourcing might be the best option due to the savings in labor. However, in some cases a project could be so complex that the constant back & forth discussions between the client and the overseas developer might outweigh the potential savings from outsourcing a project overseas. Language barriers, culture differences, and a lack of familiarity with American consumers are common problems when solutions are outsourced. If a business does not have a clear understanding of what is needed, and frequent modifications are required then working with a developer overseas could not only be frustrating, but more costly.

If you are a small business that wants a website that is both functional and creative for a largely American demographic, and the development does not need 100+ hours of labor then it might be cost effective and less frustrating to work with a company in the states. For most companies your website is the first interaction a potential customer has with your product or service. Trying to save a few thousand dollars on the creative and development processes of your website (or other project) can be extremely short sighted, and costly adjustments may be required to appropriately fit your target demographic. On the other hand if you are a business and you need frequent manual updates, or your project is very labor intensive then outsourcing will most likely be your best option. It's up to to the business to decide what is right for them based on their needs. Get multiple quotes, review portfolios, and talk to the developer's previous customers before a decision is made.

Saving a few thousand up front can cost you millions in the long run, and spending too much money on development can leave you with very little money for marketing and attracting your customers to your website, or other place of business.

Vinod Tonangi | www.tonangi.com | phone: 201.252.7265 | fax: 619.566.4043

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