Some of the advantages of outsourcing and subcontracting your support services include:
- Saving the salary expense of additional personnel.
- Saving overhead expenses for such things as Unemployment Insurance, Workman's compensation, Social Security, etc.
- Saving expenses for vacation pay, maternity leave, sick leave and even coffee breaks.
- Saving retirement and profit-sharing expenses.
- You pay only for the time actually spent working on your projects, which services can be marked up and billed to your clients.
- With additional salaried personnel there may be a lot of time spend on overhead or "busy" projects which may not be billable to your clients or add to your bottom line profit.
- Subcontract services are direct expenses, which can be completely deduct from Federal taxes.
- No need to make costly investments for expensive software or equipment or specialized personnel to run it.
- No need to use floor space for desks and other furniture, which space my best be used for other operations more consistent with your business efforts.
- No need to pay rent on the floor space needed to house additional personnel, equipment and furniture.
- No need for additional management time to supervise additional salaried personnel.
- No need for additional accounting personnel to keep track of salaries, benefits and expenses associated with additional personnel.