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Outsourcing can be a very smart move for some real estate brokerages and should be considered to some degree in all our business strategies.

We are already accustomed to having sales functions performed by independent contractors. Perhaps thinking creatively how other independent contractors can handle some of the customer service, front and back office operations is a good exercise.

Does corporate relocation, leads management, payroll administration, accounting, data input, etc. etc. need to be done by employees in your offices? Perhaps it’s worthwhile to spend some time researching outsourcing alternatives and their impact on your bottom line.

Some obvious advantages are (1) independent contractor vs employee cost, (2) can more easily handle peaks and valleys in revenue, (3) avoid paying workers who will have to be paid whether or not there is enough work to do year-round, (4) the use of office space for more productive pursuits, and more.

The disadvantages may be the possibility of loss of quality and schedule control. These potential weaknesses can usually be overcome with strong management involvement.

In today’s economic environment, all options should be examined. There are small one-person home-based businesses springing up all over the place. People with excellent skills are offering them on a contractural basis, which may be a better, more efficient and more cost effective alternative for your business than maintaining your current employees.

Are you outsourcing some of your operations? What impact is it having on your company, your employees, and your bottom line?

This entry was posted on Tuesday, February 16th, 2010 at 7:08 pm and is filed under Real Estate Operations. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.