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Outsourcing can make a business look more professional, according to one call handling service.

Go Response claims that having a virtual office and workers overseas can improve the way a small firm is perceived by potential clients.

Spokesperson for the firm Geoff Kirby says that although costs mean many small businesses cannot afford an office space, having a virtual base can be vital for the reputation of a firm.

These online offices can include a business address, mail services, phone services, fax services, answering services, web-hosting services, and meeting and conference facilities.

He claimed that outsourcing gives "flexibility to the start-up business" adding that "they can cope with whatever hits them, especially when someone is starting out, it makes good sense."

"They can then look at the business again when it's up and running."

Speaking about having a virtual office, Mr Kirby added: "A lot of small businesses are run from home, they don't need an office, they don't want an office, but they do need a central point to act as an office."

In a recent survey of SMEs for Connect, the two most important benefits of outsourcing were 'guaranteed response times' and 'allowing in-house IT staff to concentrate on more strategic issues'