A dilemma that many businesses face today is whether to outsource or handle everything in-house. Needless to say, outsourcing is something that benefits most companies. However, it is all about choosing the right parts of your business to outsource. From IT tasks to accounting, there are many tasks that take up a large portion of a company’s daily operations, yet they aren’t directly related to the core of their firm. These are typically the type of jobs that are best to outsource. To determine whether you should outsource the job you are considering, ask yourself the following questions:
Is it cheaper to outsource than it is to hire a new employee? The financial side of things is often the most important. Nonetheless, it is vital to consider the cost overall, for instance, over the course of the years, as opposed to merely the start-up cost. You will often find that outsourcing requires a bigger initial outlay, but over the course of the year, it can save businesses a lot of money. This is because you don’t need to pay a salary and everything else that comes with this, for example, benefits, payroll taxes, and employee’s insurance.
Is the activity one that your employees enjoy doing? If so, it would be rather harsh to take it away from them. On the other hand, if it is a part of their job that they really hate, outsourcing may not be such a bad idea. A good example of this is a tech firm with programmers. Programmers are going to be happy coding in front of a computer, but they may feel uncomfortable when it comes to lead generation and marketing.
Is the job wasting valuable energy and time? There are a number of tasks that are necessary in order for a business to function, yet they take up a lot of time and energy. This is time and energy that could be used on the core of your firm, i.e. what makes you money. This is why outsourced IT support is so popular. Almost all businesses recognise the importance of IT to their firm in the current day and age, but they don’t want half of their team to spend all day focused on it.
Is the task permanent or temporary? If the task is permanent, in-house solutions can be best. If the task is temporary or one that recurs in cycles, outsourcing is typically more suitable. If you only need a professional to carry out a task several times per month, it does not make sense to take on someone full-time. You will spend more money on their downtime than the work they provide.
Do you require a skill that is specialized? If so, it is probably impractical to get one of your regular employees to carry out the task in question. No matter what type of business you run, it is highly likely that you will need a specialist in a diverse area at some point or another. No one can be a master of everything.