With the Internet connecting people all across the world, outsourcing has grown quite considerably. It gives entrepreneurs to hire talented people and acquire low cost labor. But outsourcing may not be the best option always or for all categories. For example, it is not advisable to outsource employees from the customer service department because it can make a bad impression on the customers. But, in other categories entrepreneurs often wish they outsourced sooner as they would have wasted lesser time. So, to make this decision, we may have to weigh the pros and cons.
- Major benefits of outsourcing are that you can have access to a larger pool of talent from all around the world, you would have more time on your hand by keeping the lesser important jobs away from your shoulders and there will be more cost savings.
- Major job profiles that can be outsourced include marketing and content development, website design and development, customer support, etc.
- Outsourcing offers a low-cost way for entrepreneurs to go into business for themselves, and tap into the knowledge and expertise of skilled and qualified people, without the added risk and cost of hiring full-time employees.
- Not everything you outsource will have a direct effect on your business. If the problem is on the other side of the world, there may not be much you can do but trust your vendor to deal with it their way.
- While keeping certain functions in house may not save you any money, it gives you more control over the quality of work that’s produced and the ability to better define and preserve your company culture.
- Functions like human resource, security and customer service should be kept in-house.
- For a startup or small business, any reduction in overhead lets you shift more revenue to operational growth, while simultaneously freeing up your time. Outsourcing can provide continuity, operational expense control and risk management.
Remember, outsource your weakness. Analyze your team, their work and your processes on a daily basis. Once you have identified your areas of weakness, or those areas where your team is struggling to keep, you could possibly consider outsourcing. Also, you may also want to look at the difference between a full-time hire and outsourcing. Which is lesser is your pick.