More and more SME’s are recognising the many benefits of outsourcing a specific product or service to an external provider.
Whether you require an individual or team with a specific skillset or you need help with a growing workload, outsourcing can be a great way to save both time and money, whilst optimising productivity.
But what does outsourcing mean?
Outsourcing involves distributing certain job functions outside a company rather than choosing to handle them in-house.
For example, you might only need support at certain times of the year for certain tasks or you might require a service that your team cannot handle in-house.
If you’re considering outsourcing within your small business, you have certainly landed in the right place! We’ve created a helpful guide outlining the pros and cons of outsourcing so you can decide whether or not it is right for your business.
Benefits of outsourcing
One of the main benefits of outsourcing for small businesses is the low costs involved as you will be able to complete certain tasks without having to invest time and money in hiring someone full time, on a long term basis.
A huge talent pool
Outsourcing work will also allow you to reach out to a huge pool of talented individuals with the skills, experience and expertise required for your specific project.
This level of specialist help can not only help to drive your business forward, but it can also allow you to achieve your business objectives far more quickly and effectively.
Avoid a lengthy recruitment process
Recruiting new staff can be a lengthy task, costing your business both time and money. But that’s not all… if you decide to outsource projects, services or specific tasks, you also won’t need to worry about holiday pay, training costs or recruitment costs.
Improved efficiency and productivity
When you hire a full time member of staff, you are paying for them to be in the office full time however, when you outsource you only need to pay for the time that an individual or team spend working on a specific project. This can prove extremely beneficial when it comes to optimising efficiency and productivity.
Disadvantages of outsourcing
If you outsource work overseas, communication can become a major issue, especially if you have to overcome different time zones.
If you do decide to outsource work overseas, you should agree on certain times that you can communicate.
Far less control
Outsourcing work means that you will have less control over the outcome of the work compared to a project that is being completed in-house. So you will have to accept the fact that you won’t be able to micro-manage and will have to trust an individual to complete the task effectively without you looking over their shoulder.
Quality of the work
In the world of business, you get what you pay for. With this in mind, you need to think carefully about the price you are willing to pay to outsource work as this will have a huge impact on the quality of work you get for your money.
If you need HR advice for your business, get in touch with our Consultants today!