12 Reasons to Subcontract

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Advantages of Out-Sourcing Services

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.