When Does Outsourcing Make Sense?


Many companies have started to realize there’s no longer a need to staff everyone in house. Instead, you can save money by placing some of your company’s responsibilities in the hands of a third-party company.

There are plenty of different tasks and responsibilities your company can outsource, such as HR, marketing or even customer service. You can outsource these responsibilities to local companies, or you can opt to use international companies.

Outsourcing allows businesses to focus on their major responsibilities and limit the amount of full-time employees they have on staff. If you’re unsure about knowing when to outsource, the following are five examples of when outsourcing would make sense for your business.

1. You need to lower your expenses.

Every quarter, businesses go through their finances with a fine-tooth comb in order to learn how profitable (or unprofitable) they are and determine what they can do to be more successful. If your company is currently in need of lowering your expenses, outsourcing can be a great way to cut costs. Instead of keeping multiple individuals on staff at a full-time salary, you can instead outsource these responsibilities to other companies for a fraction of the cost. This will free up money to place elsewhere and allow your company to be more profitable.

2. You need to downsize.

When you have a company full of full-time employees, the office can get pretty crowded. Sometimes a company finds it necessary to downsize, whether strictly with number of employees or even the size of the actual office space. If this is the case for your business, you should consider outsourcing. Instead of keeping a full-time marketing department in house, for example, you could outsource those needs to another company. This frees up salary and office space, allowing you to downsize effectively.

3. You need to regain focus.

As a business owner or manager, you know that it’s your responsibility to dish out tasks to your employees and chip in when necessary. If you are giving your employees mundane tasks, such as cleaning the kitchen, answering phones, or placing them in charge of your social media accounts, you are taking the focus away from their actual responsibilities. This can greatly decrease productivity and have a negative impact on your business. If you need to regain focus in your company, consider outsourcing these jobs to a professional third-party. This way, those tasks will be in the hands of professionals, and your employees can get back to their own responsibilities.

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4. You need expertise.

Trying to hire the right people for a certain job function can be time consuming and difficult. You will spend a great deal of time interviewing potential employees, and you may not find exactly who you’re looking for. If you are in need of certain expertise and don’t want to waste time on the hiring process, you should outsource. For example, if you’re in need of customer service representatives, consider outsourcing this to a professional call center instead of hiring (and paying) multiple individuals. Outsourcing companies that are skilled in these specific areas will be much better for your business than trying to do it yourself or waste time hiring someone who can.

5. You have small needs.

Every business will come across a small need now and then, and there’s no reason to hire a full-time (or even a part-time) employee for these random tasks. For example, if you’re in need of a quick brochure, it’s better to outsource a graphic designer for that specific project than to hire one full time. If you’re in need of someone to record meeting minutes, outsource a third-party company to provide professional transcriptions of meetings and interviews you record. Outsourcing professionals for these small needs is much more cost effective than employing someone full- or part-time to do so.