As competition for federal contracts increases, it is becoming increasingly common for federal contractors to pursue contracts with various agencies and in different locations, which may result in performance of work at several different installations, including in different states. As a result, federal contractors often find themselves with a fragmented workforce - meaning they have employees that work in a variety of different physical locations. For example, a single company may have an office in Honolulu and one in Florida, both of which employ the company's back office staff. This same company may also have staff that work remotely or on various government installations in both locations as well as in other states.
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These days, businesses are always in search of ways to operate more effectively and efficiently, which in turn generally results in increased productivity and profitability. One strategy some companies use to increase their effectiveness and efficiency is to utilize outside contractors to outsource certain functions. For some organizations, it does not make sense to have a full-time employee to do certain tasks in-house and it is more cost effective to utilize a company that specializes in that particular area. Other businesses prefer the convenience of having someone else handle certain aspects of their daily operations. There are also businesses that integrate and utilize outsourcing as a strategic part of their operation.