Is There A Right Time To Start Outsourcing?
At the conception stage of a business, an important question that arises is whether a business should collaborate with an outsourcing agency or not? It is quite difficult to get to the right decision on what should really be done; however, there are a few things that should be taken into consideration to ensure the best choice is made. Doing research beforehand will certainly help. Nevertheless, according to experts, no matter which part of the life cycle the organization is in, for most businesses it is never too late or too early to start outsourcing.
However, when businesses are in their early stages, most of the entrepreneurs are doubtful about collaborating with an outsourcing agency. For that reason, they should answer the following questions:
- Why should I outsource?
- What is the first thing that needs to be outsourced?
Since the answer to these questions depends on the individual, it also infers that the actual use of a helping hand or not would be in accordance to the growth and development of your own business. The ability to set a goal is quite crucial and an important step for your business. Having no direction in which your business will flow might create confusion that will definitely be contra productive.
Prior to every decision, whether it would be better to outsource or not, performing a time-cost calculation would be quite worthwhile. By following the 5 criteria that we have pointed out as the most important, you will have an easier time evaluating whether or not it is a good decision to outsource at this stage. Here are our 5 most important criteria to consider:
- If the activity is not central to generating success, it can be outsourced.Work that is core to your business, should be managed in-house. All the other non-core jobs, for example, HR, marketing and administrative support, should be sent to an outsourcing agency. This will make your work easier and ensure quality products. Shifting your focus on higher goals rather than going into small and unnecessary details will lead to success.
If the job is simply a daily routine that wastes your time and money, do not think twice about letting an outsourcing agency do it for you.Certain work that will waste resources and drain your productivity could be easily managed by affordable outsourcing agencies.
If you have recurring tasks that are necessary yet done in cycles, outsource them! STOP putting a lot of energy into short-term projects which may be an additional obstacle or set-back for your employees to completing their core work.
If the job is less expensive for someone else to do it, give it to the person who would be able to do it for you for an affordable amount of money.When it comes to business, it is important not to throw away your money for services which can be done professionally at a lower cost.
If you have a pile of work normally done in-house, butis drainingyour resources – Outsource it! Investing all your resources into a concrete pile of work may be a large drawback, so consider a delegating all or part of it to an outsourcing agency. For example, if you have various regional databases to sort through, think about assigning a team leader to assure quality over the outsourcing agency who has taken on the task for you.
Another thing that you should always pay attention to is the difference between paying your employees and paying an outsourcing agency to do the work for you. If paying a regular salary to a set of employees is a more affordable alternative, then do all the business in-house. On the other hand, businesses which find outsourcing a better and more financially-efficient alternative, can outsource part of their workforce right from the beginning.
How do you know which task should be outsourced? Here are some of the most commonly outsourced business tasks:
- Social Media Marketing/Content Marketing
- Websites and Blogs
- Market Research
- Office Administration/Data Entry
Nevertheless, for those of you who would like a more scientific and detailed approach, we have included a deeper statistical analysis into the field. Please take a look at the table below to get some insight into the tasks that are most likely outsourced:
Simple logic is what drives most business decisions. Keep in mind that any type of investment is a risk but whenever you consider outsourcing, you’re doing it tosave money. Often times it’s best to outsource from the very beginning and look towards the long-term benefits that outsourcing will provide; higher savings, faster growth, and so on. In cases where your salary cap is tight and you have a need for additional employees, whether to meet new business opportunities or maintain a higher quality than the competition, outsourcing can be the pill to alleviate your pain. In our opinion, it is never too early or too late to outsource your work, as long as there is work to be outsourced!