When Should You Outsource? Here’s Some Questions You Should Ask Yourself
By being smart about outsourcing it can do much more that just cut costs.
Today outsourcing helps companies from the single entrepreneur to the big multinational company to fill in skills gaps, become more more efficient and become more focused.
Technology has made outsourcing an option that even the smaller companies or entrepreneurs with limited capital can afford. Be aware that outsourcing won’t automatically be beneficial, so look at what you need and see if it will pay for you to outsource. In case you can’t do a task on your own or in your organization, outsourcing might be the solution
But how can you determine if it is beneficial for your business or organization to outsource a particular task? We will offer you three questions you can try to ask yourself in order to answer the first question.
1. Will it propel my business forward?
Deloitte made a Global Outsourcing Survey in 2018, and according to the study is keeping costs in check still an important reason for using outsourcing, but the motivation has changed. Today it has shifted to co-operation with partners to develop products and services that they can’t provide on their own.
Particular for entrepreneurs and small businesses outsourcing is worth to consider as a tool to propel their company forward faster and more efficient, than if they had tried to hire employees to do it or to do it by themselves. Even product development can be outsourced. E.g. did Groove outsource the building of the SaaS product as he knew he missed the knowledge to do it. By using outsourcing did he manage to get the idea out on the market.
2. Will it boost my team’s capabilities?
Outsourcing can also be a great way to supplement the skills of your team. If you withyou’re your present team can check of nine out of ten expertises you need, you can outsource the last the tasks that requires the missing skill. A great example can be a marketing company that lacks video production that some of it’s customers requests. Instead of seeing them going to a competitor they can outsource and give the clients a 360 degrees service without having to hire extra people. No matter if it is IT, accounting, marketing or something else, it helps everyone to success if you build it with the help of strategic outsourcing.
3. Will it make my team more efficient?
But sometimes it can profitable to take it even a step further than outsourcing in areas where you lack the competences. Actually it can make sense to outsource among your core competencies too. This will allow your in-house team flex their efficiency and productivity muscles. E.g. will your team be able to complete a time-consuming and complex project that requires close cooperation with the client, while the people you have outsourced to can take care of the more straight forward projects.
There’s no doubt that all sizes of companies and organizations can relate to the above questions. The other truth is that even smaller organizations thanks to strategic outsourcing can have the same chances of success as their much larger competitors. But you should always take a careful look what can before outsourced for optimal results before you begin the process.