Outsourcing: What Is It, What Do You Need To Think About & How Can It Benefit Your Business?
The process of engaging another person or firm to execute specific business duties for you is known as outsourcing. It can save you time and money in the long run, but before you hire someone to do the task, make sure it is something that is beneficial to your company.
Five key questions to ask yourself before you delve into outsourcing a task are:
- Is the task something you enjoy?
- Do you have the time to do the task yourself?
- Do you have the skills to do the task yourself?
- Do you absolutely need to be involved in that particular task?
- Can the task be automated at all?
If you responded “no” to any or all of these questions, outsourcing is something you should seriously consider. You want your company to expand and grow as soon as possible, and outsourcing certain duties allow you to concentrate on what you can and must do. However, do not just outsource because everyone else is doing it. Consider what will work best for your company.
Do some research before you make a decision to outsource. Find out what time-consuming chores are taking up your time. For a few weeks, use a work tracker. You can examine how much time you or your staff spend on tasks at the end of a month or a predetermined amount of time.
Is it really worth outsourcing a task that you despise if you just spend an hour on it once a week? You will spend more time organizing and managing it than it is worth, not to mention the potential cost.
Any activity that meets the following criteria should be considered for outsourcing:
- Something you are not recognized for – if you’re a website developer, do not pay someone else to develop your website. That is your thing, and it is the bedrock of your company.
- Something you are not really good at – no one can be great at everything. While you may be a brilliant designer, you may be deficient in digital marketing abilities or ads management. This is something that can have a significant impact on your company, so it’s worth enlisting the help of experts.
- Something you do not enjoy – Sure, we all have to do something we do not like now and then, but if it is something you truly despise, it is worth delegating to someone else so you can focus on something you do enjoy.
There are a few more things to think about once you have decided on a task to outsource.
- Is it necessary to outsource the complete project? Can they perform the social media promotion for you if you have a blog as part of your business and you enjoy writing it? Can they gather ideas and conduct research so you can concentrate on the content?
- How are you going to tell them what they need to do? Make sure your directions are specific and easy to understand. It’s pointless to give a vague directive like “build a website for me.” You will waste more time going back and forth, clarifying, requesting modifications, and resolving issues than it is worth. Ensure that your outsourcing partner or agency understands exactly what you want them to do from the start. It may take a little longer at first, but it will save you time, money, and lots of hassle in the long run.
- Will you engage an agency or a single freelancer? Agencies employ more people with a wider range of talents. If one person is absent, another person may be able to fill in for them. You will, however, pay an additional fee for this. Although freelancers are less expensive, they may have to balance you with other clients. You must decide which option is best for you and your company.
- What method will you use to communicate? It is imperative that you communicate. You must choose a means of communication (email, phone, face-to-face meetings) and how frequently you want to discuss the job or be kept informed from the start. It is also critical that you and they both maintain track of what’s going on. Workflow management tools like Trello and Asana can help with this.
What are the benefits of outsourcing?
- Can minimize your costs: Hiring workers to do non-core business functions might be costly. You will have to give workspace, equipment, and support, as well as any perks they’re entitled to, in addition to the income and earnings. These prices are just unsustainable for start-ups and small businesses in particular.
- Enables you to focus on your core business operations: You handpick your staff based on their knowledge, experience, and abilities to assist you in carrying out the critical responsibilities that keep your company running and growing. Do not squander their time – or your money – by putting them to other tasks. You are allowing your staff to focus on their areas of expertise by outsourcing vital but non-core tasks. This not only saves money but also prevents employee dissatisfaction.
- Enables you to work on a larger, more international scale: With the advancement of technology, all organizations could now function on a worldwide basis. You could utilize the internet to connect with clients, consumers, and suppliers all over the world, whether you are a brand new start-up or a newly launched business. This kind of thought, however, can also be applied to locating the best-outsourced services. You might need a 24-hour customer response staff, for example, depending on the nature of your firm. Rather than recruiting enough people to keep up with it, you can simply outsource your needs to a dedicated service provider in that time zone who specializes in 24-hour customer support.
Reduced expenses and increased productivity are critical for every organization or activity. You can improve in-house efficiency while lowering your outgoings by partnering with skilled and expert outsourced partners. Your business can operate with increased productivity and, as a result, increased turnover and profitability if your in-house workforce focuses on core business areas while your outsourced partners provide non-core or support services.