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Staff outsourcing is a double-edged sword for SMEs

29/08/2007  10:49:30

 


 

Small firms who outsource skills are dealing with "a double-edged sword", one industry expert has said.

Martyn Hart, chairman of the National Outsourcing Association, recently explained that outsourcing can avoid the problem of internally-trained staff, in high demand, leaving for better salaries elsewhere.

He emphasised: "What small businesses tell me is that they train someone up and then they leave.

"They cant afford to pay for that person once theyve got the skills because they are in high demand.

"For example people who know about Lotus Notes are in very high demand because you can build a complete business process on [Lotus] Notes."

However, Mr Hart also explained that when firms train people internally, they tend to better understand the business concerned because they are "one of you".

He continued: "you go to outside supply, do they really know your business?

"Thats really where the skill comes in, trying to engage with an external supplier [in such a way] that they are doing what you want them to do rather than what they want to do."

Outsourcing provides small firms and other businesses with a number of different options.

They can choose to utilise web services such as business applications, through to managed services covering specific technology areas, such as security and electronic asset protection.



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