To Outsource or Not to Outsource - That Is The Question


When you run a business, it’s important to find the balance between ease and efficiency and cost. Get this right, and you will turn the maximum amount of profits and your business will reach its full potential. So when it comes to outsourcing it can be a tricky one, hiring another company to take care of an area of your business can certainly make things easier for you, but there are costs involved. So is it worth it, should you outsource different parts of your business?

Time & Cost of Hiring New Workers 

If you decide to keep your business all in-house, finding the right staff to work for you can be tricky. You have to trawl through applications, you have to interview candidates, then you have to train them once you’ve made your selection. All of this can be time consuming and expensive. On top of this, when staff leave you have to go through this process all over again. If you outsource instead, you avoid this problem. The company you hire is responsible for sorting out their employees, and you can just sit back and know that you’re getting a job well done. You also don’t need to buy equipment for staff to use. 3PL logistics companies for example will have all of their own fleet of vans so you don’t have to worry about purchasing vehicles, insurance or anything else. IT, HR and other outsourced office companies will have all of their own computers, software and other equipment ready to go. So from this perspective, outsourcing can be the cheaper and easier option. 

Productivity Levels 

When you’re managing your own team in-house, you’re responsible for making sure productivity levels remain constant. Anything from workplace bullying to an unpleasant office can affect this, there’s a lot to take into consideration, so if you want to make life easier outsourcing can be one way to do this. When you hire a company they will provide you with consistent results, if you use your own team there could be fluctuations unless you’re keeping on top of everything. 

Health & Safety 

There are health and safety concerns in any workplace, with guidelines and rules that have to be followed. Even in offices, let’s face it these seem like very safe places to be but employees still have the potential to slip or trip, fall down stairs or cut themselves on things. If your workplace is higher risk, for example if you have machines, vehicles, use chemicals or anything else it can be even trickier. When you keep areas of your business in house, you have to make sure that every element is being done by the book. This can be time consuming and costly, so outsourcing is a way around this. Any company you outsource with will be up to date with all health and safety laws so this is added peace of mind for you.

When you outsource different areas of your business, it allows you to keep your in-house team small and efficient. You might be handing over control of elements of your business to other companies, however this actually gives you better control over all. As you can be sure that all of the legal, health, safety and practical issues are being dealt with correctly.





I hope you enjoyed this article about whether or not to outsource functions of your business to save money and improve focus on core competencies.

Interested in more articles about outsourcing?

Read My Posts:

- 5 Departments Of Your Business To Start Outsourcing

- Top Tips For Starting A Business

Published by Michael J Schiemer
Owner of Bootstrap Business
Money - Marketing - Motivation
Digital Marketing | SEO | Social Media
Mike Schiemer Builds Better Business

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