When do you think is the proper time to start expanding your business and outsourcing tasks? How should you make the decision on outsourcing tasks from within your business.
Here are 3 things to consider before you jump ship in outsourcing any business task:
1. Consider the costs involved
If you’re able to land a person who can carry out a certain task compared to your in-house staff, then by all means, outsource it. Outsourcing is very flexible. You can only pay for the work that needs to be done. But of course, there are also expenses to consider especially when hiring and training an employee.
You may assume you’ll be paying higher to outsource tasks compared to how much you’ll be paying your staff. Ensure to cover the costs involved when you’re making a comparison, especially if a new employee is in play.
2. Seek an expert who can do a specific task
If special skills are required to carry out a certain task, and it so happens none of your staff possesses such skillset, you’ll need to consider the cost of training an employee for such task. If the task entails more workload, you can opt to doing it in-house. But in the meantime, you can outsource it.
3. Know the mission critical nature of the task
Never make it a habit to outsource a task that’s considered to be business critical. One downside with outsourcing is that you don’t have full control over a task you outsource.
When you outsource, will you be confident that the task you’ve given out will fit the quality requirements your consumers expect? Can it be completed on schedule to cater to your delivery promise? How will your clients feel when they find out you’ve been outsourcing tasks from the beginning?
If consumers purchase from you since they feel you offer the best in terms of value, and you’re paying a third party to make such value, they could ask why they bought from you instead of your competitor.
Outsourcing is a valuable option if customers desire a lower pricing or they don’t pay too much attention on where the work is being done. But thing is, it could lead to doubt if customers (who buy from you due to your reputation and quality work) find out some or most of your work is being outsourced. This doubt alone could crumble your business and benefit your competitors. It pays to think twice before you set your foot in the outsourcing world.