Wednesday, March 28, 2012

Scalability

Is your company scalable?  If it isn't, you will have a difficult time adjusting to the crazy economic swings we have been experiencing. The most costly part of your company is probably human capital (people). Do you need an IT person, or can you source this work?

If you have seasonal fluctuations do you hire and fire or do you use a temporary agency?  These are the questions you need to ask yourself.  On the surface - the up-charges are more costly than having these people full time.  The real cost is having a full time IT person sitting in a cube with no real projects to work on, Or carrying seasonal people till the "busy" time returns.

Partnering with temporary firms or IT service firms will save money in the long run, and best of all, when it comes time for the seasonal layoffs, your partner does the dirty deed.