Many companies have opted to hire someone (a third party) to deal with a specific task or project for many years through outsourcing. Thankfully, technology has made outsourcing more practical, especially for organizations that need to outsource particular projects overseas.
Whether you’re just starting, trying to keep up with the demand of your business operations, or planning on growing your business, outsourcing some of your functions to other companies, independent contractors, or freelancers could help you set you on the right path.
What Exactly is Outsourcing?
Outsourcing involves getting a company or individual — that’s outside your organization — to either perform ongoing work such as virtual IT solutions or complete a project like developing a website for your company.
Small business owners typically outsource tasks like tax accounting or bookkeeping, or to promote their business through efforts like brainstorming a major marketing campaign. It could be more cost-efficient than getting more employees and can even provide you with particular skills that no one in your current employ has. It’s certainly easier to find an experienced service provider than looking for an employee and training them. You don’t also have to deal with benefits and payroll taxes.
What You Should Outsource
As your business grows, consider if the extra work could be done by an employee or if it might be better to outsource the task. Generally speaking, there are common situations where outsourcing is the most viable option. Companies usually outsource functions that are temporary as opposed to functions that you know your company would perform continually and should do internally.
For example, you could hire an accountant that would do your accounting and prepare your taxes every year, or outsource the finding and hiring of employees to a freelance human resources professional. Other circumstances that involve temporary functions include creating a certain program, building a social media marketing campaign, or keeping up with seasonal demand increases in customer service reps or in-store employees.
What You Shouldn’t Outsource
Although outsourcing could be an important resource for your business, there are times when hiring full-time employees might be the most ideal option.
A majority of business owners choose to have employees they trust to manage ongoing core business functions that are vital to their business’ success because they could rely on these employees for the long haul. For functions like these, it’s vital to have employees who are knowledgeable about your business practices and operations, and whose success — both personally and financially — is tied to the continuing success of your business.
Put simply, outsourcing could help you focus more on your core business functions, while controlling your overhead costs. It could also save you valuable time because a company or individual focused on doing your outsourced work could finish it much quicker than an employee who also needs to complete other tasks for which you’re originally paying them for. You just need to determine which functions you should outsource to ensure the best possible results for your company’s bottom line.