Ronald Coase, a Nobel laureate in economics in 1991 noted that companies will grow to the extent that the costs of organizing additional operations within the company became equal to the cost of purchase of the same operation on the market. Syntax ERP Solutions is always here to respond to all the needs you have related to hosting. Simply contact us and let us know what you need. We will provide you with the help you need.
This formulation, known as the Coase’s law, explains the essence of outsourcing. As organizations grow, they are becoming more complex and it is becoming more expensive to coordinate these activities. Coase noted that there are always companies that can produce specific products and services in a more economic way compared to other companies. If you form a more efficient company, your company will squeeze out those who are unable to adequately manage their resources. The only way that inefficient companies can survive is to determine the inefficient functions and to let professionals take care of them.
Reduce costs with outsourcing
How can outsourcing reduce labor costs? Outsourcing can really help you save a lot because you are not going to spend money on buying or renting office space, invest in buying new equipment such as computers, file storages or hiring experts such as programmers or graphic designers who could cost you even a hundred thousand dollars a year just to create you a website, maintain it and update it regularly. But when you move to outsourcing, you will have a much lower and stable price to pay to your employees depending on your requirements and needs.