Within the context of business, outsourcing entails obtaining goods or services from an outside supplier (i.e. an individual or a corporate entity).
Outsourcing may be a preferred option where your business lacks direct access to certain raw materials (for instance), essential to your business. Or lacks the needed in- house technical skill such IT expert, Legal, Accounting, etc.
In addition, outsourcing could be a cost effective option as it limits payroll and overhead cost.
As a business owner, you must bear in mind the fact that unlike employees, these suppliers or service providers have an already existing mode of operation when it comes to providing their services and as such, they may in some cases make independent decisions and act based on their pre-existing terms.
Such decisions or actions may however be made to your detriment.
Where your business needs the services of Independent Contractors on a LONG TERM basis (emphasis mine), please do the following;
1. Conduct proper investigations on the mode of operation of these contractors to determine if their operating standards would be convenient and suitable for your business. 2. Communicate your concerns and expectations with your prospective contractor and have your mutual decisions reduced in writing. This would ensure your contractor remains commited to the terms of your agreement and your can enforce performance when such contractor acts in default.
Hope you found this useful Please feel free to leave your questions at the comment section if you have any.
Do have a fantastic day.?

Cynthia Tishion
Cynthia is a lawyer and currently serves as Head of Corporate / Commercial Services at LEX – PRAXIS. With her passion for business and entrepreneurship, she is actively engaged in creating awareness on the legal aspect of businesses through various platforms such as writing, public speaking engagements.

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