Outsourcing of Billable Hour - Essay Example

The business format of Billable Hour demands a website that enables Lisa and Mark to gather goods from manufacturers, for instance, Stu Rees, 37, who dwells in Santiago. Similar to Mark and Lisa, Stu Rees is an attorney with an inclination and love for cartooning. He undertakes the outsourced designing for Billable Hour's cards. The company also outsources some of its work to professionals in Greece and Canada at very cheap rates.

            The company considered the option of outsourcing its job to online experts due to the challenges of having permanently employed staff. Allocation of jobs online is much quick and effortlessly manageable as compared to having permanent staff members. While most small business experience fluctuating income and are much more exposed to risks such as losses. The company notes that outsourced jobs are effectively conducted and delivered within the timeframe desirable to business conditions. Currently, Billable Hour is a small business that Lisa can manage singly, but even as it expands Lisa notes that would resist the test of hiring new workers due to: workers' health benefits, state payroll taxes, compensation insurance, and compliance with workplace requirements.

items

Manufacturing cost ($)

revenue ($)

Profit margin ($)

Wristwatches

1500

2000

500

greeting cards

540

1200

660

cartoons

1200

3200

2000

party games

1019

1500

481

totals

3641

Table 1: Weekly income generated by outsourcing works at Billable Hour

            The qualitative factors that have prompted the company to outsource its jobs originate from the employment challenges directed by the current policies on the labor process in America. The hurdles are ritualistically high and cannot be adopted by emerging firms. Similarly, people growingly desire to be independent and managed their own firms. This was triggered by the unexpected turn of events under which many people were rendered jobless after the economic downfall. Uniquely, Billable Hour deals with soft copy goods that are easily deliverable by internet technology. The internet infrastructure exposes it to a wide variety of market players that contribute hugely to the design and successful growth of the company. This model of outsourcing also ensures the allocation of only sufficient room for the operation of the company duties; most of the work is undertaken online and a complex staff managerial structure is essentially not required. Elevations in technological trends emanate as another sole reason for the outsourcing of jobs. This revelation creates a flattening of the market landscape thus spurring an entrepreneur to initiate a personal venture without the aid of the employees. Other outlined companies in this segment are the accounting, public relations, and retailing service companies.