Outsourcing Explained | The what, why & when

It can be difficult to tell when and what you should outsource in your business. But if you are experiencing any of these four things then you’ll know for sure!
Published on
March 9, 2023

Outsourcing is the process in which you hire a third party to do work on your behalf instead of doing it internally.  Essentially, any work or activity that is carried about your company could be outsourced but the most commonly outsourced tasks are:

  1. Customer Service
  2. Social Media Management
  3. Sales
  4. Search Engine Optimization
  5. Web design and development
  6. Accounting
  7. Human Resources

When should you outsource? 

Outsourcing is an incredibly common business practice. It is estimated that the BPO industry will be worth 330 Billion Dollars by the end of 2022 in the United States alone, and in the UK only 25% of businesses choose not to outsource. Despite this, a lot of businesses still consider outsourcing a bad idea. 

Outsourcing isn’t black or white. Whether or not outsourcing is a good idea really depends on your own business’s situation, but there are some tell-tale signs that you should outsource.

1.) Your business needs some more creativity

There is nothing better than a smooth-running business, one with processes so well outlined that it feels as if it’s going on autopilot. But sometimes you might feel as though your business is lacking in the innovation department. Hiring an external source will bring a new set of eyes to your business, new ideas, and a totally different perspective. 

2.) You have a complex task

If you have a particularly difficult business task ahead, one that your business has no experience handling, then outsourcing is the way to go. By outsourcing, you’ll be able to hire a specialist who will complete your task to a professional standard, faster than your internal team could do it, and for a lesser cost.

The same rule applies to tasks that aren’t critical to your business. For example, if you are a small accountancy company, trying to create your own website wouldn’t be worth the headache. Instead, you should hire an experienced team of experts, like us.

3.) Your Workload is maxed out

If your employees are overloaded with work, outsourcing would be a fantastic solution. Rather than slowing down or putting a stop to certain projects, outsourcing will enable you to keep up the pace and keep hitting those deadlines! This can be especially useful if your company is seeing explosive growth because it will enable you to scale with ease.

If you do decide to outsource to relieve your staff’s workload, make sure to ask your employees what exactly they need. This will help alleviate unnecessary expenditure, maximize efficiency and boost worker morale.

4.) You are making costly mistakes

Small businesses and startups alike can easily make mistakes. These mistakes can be incredibly costly. Hiring a professional external team will help reduce some of this risk and although the upfront cost of outsourcing might seem counterintuitive, it will likely save you money in the long run.

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