Most business owners recognise that there are many benefits associated with outsourcing. Not only is it a great way to tap into the expertise you don’t currently have at your company, but it is an effective way to save money and time too. However, this will only be the case if you outsource effectively. You need to determine which tasks are better to keep in-house and which tasks are better outsourced to an external provider. So, with that being said, read on to discover whether you should be outsourcing the task in question or not.
Would it be cheaper to outsource the task in question? There is only one place to begin, and this is with the financial side of things. You need to determine whether it would be cheaper to outsource the task in question or not. It is important to consider the costs as a whole. Outsourcing can often be more expensive to begin with, but keeping tasks in-house may cost more overtime. For a realistic picture, calculate the costs over a period of a year, and this will help you determine the most cost-efficient solution.
Is the task getting in the way of your core services? There are a number of tasks that take a lot of our time yet they are not relevant to our core services, for example, keeping your books up-to-date and putting together successful marketing campaigns. In this case, it may be better to look for a professional bookkeeping service or marketing service. This will enable you to focus on what you do best, which will earn your business more profit. At the same time, you will be tapping into a high level of expertise, ensuring your accounting and marketing efforts improve in the process.
How often do you need the task to be completed? The final question you need to ask yourself is whether the task in question is on-going or whether you will only need it now and again, or even on a one-off basis. If this is not going to be an on-going role, outsourcing will probably be the better approach. This is because you only pay for what you need when you outsource. If you were to hire someone, you would be spending more money on the periods they are not at work compared with the value they bring you when they are there. Alternatively, if it’s a daily, ongoing service you need, then hiring a new employee is something to think about.
Hopefully, the questions that have been stated above will help you to determine whether you should be outsourcing the task in question or not. If it would be more cost efficient to outsource, the task in question is getting in the way of your core activities, or it is something you don’t need regularly, outsourcing will typically be the best solution.