A Poor Piece Of The Puzzle… Can Outsourcing Damage Your Business?

piece of puzzle outsourcing damage business bootstrapping budget

Ask anybody running a business, and they will give you their two pennyworth on outsourcing; either it's the best thing that ever done or it's the root of all evil. But, as time has gone on, there are more of us that are using outsourcing, because we need to trim the corners or find ways to finance our business with more care. But is outsourcing damaging our businesses? 

The Impact Of Outsourcing In An Aesthetic Sense 

The reasons we outsource to other companies all come from a place of common sense- we need to save money, or we don't have the skills in-house, but have you ever given consideration as to how it looks from the outside? The general consensus of outsourcing is that you are compromising many parts of your business for the greater good. This could mean that there is a lack of identity. It's beneficial in many ways, and we only have to see the oft-used example of a small, struggling startup, to see that outsourcing in a general sense can be very effective. Technology is one of those areas that is changing so much with the times, that we can struggle to keep up, especially if we don't have the know-how within our realm. But this is where numerous managed IT companies like Throttlenet, Inc earn their crust. Clearly it's in high demand because there are so many managed IT service companies out there providing essential technical support to businesses that would otherwise sink without a trace. And now, with every government tightening their reins when it comes to the rules and regulations surrounding data breaches, we can't afford to make any mistakes. As soon as we put one foot wrong, data can be lost, as well as trust internally and externally. Customers can lose faith in our abilities because we can't even keep their name and address secure on file. Our reputation is essential, and outsourcing can be used to bolster our reputation or hinder it, depending on who we use. 

How It Could Change Your Managerial Style 

There are veritable pros and cons with this. Changing your managerial style could very well be the extra motivation you need, especially when outsourcing your business to other companies and workers. That very simple notion of hiring a freelancer who isn't emotionally invested in your company forces you to alter your managerial style to ensure they feel part of a team. When you are running a small company, and everything is in-house, you can very easily operate from a place of complacency. As a result, your style can get somewhat lax, and you may very well plod along. But if you bring into the business other dynamic working styles and sensibilities through freelancers and contractors, this forces you to up your game. 

But on the other hand, it can have a negative effect on your business dealings. And specifically, when it comes to managerial control, you can feel that you are relinquishing some of it. If you feel like this, the chances are that your employees will feel this also. They see you in a precarious position, and they will naturally begin to assume that the company is in danger, going through a tough time, or there are massive changes afoot. But outsourcing is one of those concepts that is used a lot now, and it's your responsibility to put your workers’ minds at ease. We can use outsourcing to get over a bump in the road, and so, you need to ensure that your employees feel valued during these tumultuous times of change. 

It's Necessary, But Not Necessarily Evil 

But if there are so many people around you that are self-made, and are most definitely of the opinion that outsourcing is a way to fast track your business down the tubes, are these people actually not embracing the modern approach to business dealings? Because communication is so comprehensive now, we can outsource something so quickly, that it can become a knee-jerk reaction to some internal business change. But these people around you that consider outsourcing to be an evil practice, how big are their businesses? Are they actually doing it all themselves? Or have they been in the industry so long, that they have conveniently erased from their memory when they had family and friends on board to help them negotiate a tough time? We can view outsourcing as a necessary evil because beggars can't be choosers, and if we are desperate to get our business up to the next rung of the ladder, we need extra help

The positives of outsourcing are numerous, especially in relation to cost, because if you've got a skill that’s extremely lacking in your business, you can use one of the many freelancer websites to find someone that has that specific skill. And when you are at the point where your business is doing well, and you have that financial security, then you can bring in full-time workers and finally focus on those all-important internal aspects. Communication, business acumen, culture, and ethos being a few things that can be difficult to achieve when exclusively hiring outsiders and contractors. But when you are hiring people externally, you're getting an external opinion. And surely this is better for, not just the business, but for your permanent workers if you have them, as well as your own skill set? Change is a constant in business, and outsourcing isn't just something you can do to ensure your business stays afloat, but it's a great way to reinvigorate the workers, by bringing in new blood, but it does a lot for you because you're getting that shot in the arm. 

Is outsourcing bad for your business? It can be. But what do you really want from your business at this moment in time? Do you have everything you need in-house and you're merely outsourcing one small aspect to make life a bit easier, or is it essential that you get people in with the appropriate skills to guarantee the survival of your company? Only you know the answer. 




I hope you enjoyed this blog post about whether or not outsourcing can damager your business or make it even more successful.

Interested in more articles about busines outsourcing strategies?

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