Outsourcing is a business process usually taken up by small businesses or startups. As small business owners, you’ll never know when you’ll need an extra hand, given that resources are limited and not easily available.
The reason why outsourcing poses to be of good use is because business owners are able to acquire several business services without necessarily having to commit to hiring an in-house employee right away. Having an in-house employee to work for your business can be costly, timely, and takes up a lot of resources that startups don’t usually possess in the beginning of their business.
It is in this sense that outsourcing has been a viable option for many businesses at present. Outsource particular business services, have them deliver and perform projects for you, pay them at a reasonable price, and you’re good to go!
However, some of the most frequently asked questions in the world of outsourcing are:
- “what are the signs that signify the need for me to outsource?” and;
- “what particular business processes should I not outsource?”
If you’ve found your way reading through this blog asking the same questions, then you’ve come to the right place! Here are some pointers that will help you decide when and when not to outsource!
When should you outsource?
1. Do you need/want to save up on costs?
One important resource that startups must keep in mind at all times is cost. As an early-stage startup, you have limited resources. Hiring an employee immediately for the job may not be the wisest thing to do. The safest option would always be to outsource! With outsourcing, you are hiring immediate experts to perform a specific business process for you, and that means no more training needed!
Apart from training employees being too costly, it’s also time-consuming. Startups should be more fast-paced in order to streamline their business much faster and the way to do this would be to cut down on processes that may slow you down. Outsourcing is easier in this case because if such an instance occurs where there are no more resources available, you can easily reduce your outsourced business services without having to invest so much in employees early on.
2. Do you have a particular business service that is only temporary?
There are so many temporary business processes in small businesses that do not require a regular employee to do. In this case, outsourcing contractors may be the best option for you.
This particular method isn’t constricted only for startups and small businesses but is also open for medium-sized and large companies, thus making outsourcing really handy.
3. Are you growing fast?
If you are, then it’s good to outsource!
Outsourcing gives you a feel of how your startup looks like when you start to scale and grow. Outsourcing is the best choice to do in this instance because startup growth may be unstable.
At times, you may see your business to be growing fast but then realize at some point your resources are too limited. Outsourcing is a good option when traversing this shift from a small business company to a medium-sized company.
When you should NOT outsource:
1. Are you looking for employees in the core areas of your work?
A majority of entrepreneurs agree that core areas of work are something that should be kept in-house.
These are positions too vital to be dependent on third-party business service providers.
Hire regular employees and nurture them as they will become a crucial aspect of your startup. Don’t be afraid to invest in these areas.
2. In areas of customer service
Customer service is generally built-in for every startup. Meaning, it’s not something that businesses can easily replicate.
The culture of your startup is easily reflected by the manner in which you deal with your customers and your employees, and this particular type of customer service is not something that should be outsourced to begin with.
3. Data management and protection, confidentiality
Outsourcing business services where you handle your startup’s data protection, management, and safety may not be a wise thing to do.
In areas as sensitive as your personal and professional data, be sure to hire in-house employees and not third-party professionals. This may pose as a threat and cause security breaches and other problems in the future.
Outsourcing is handy when used in the right business processes and for the right reasons!
No matter the size of your business, it may be wise to outsource every now and then, especially if you are looking into saving time and money.
However, many people fall prey to outsourcing in the wrong time and outsourcing the crucial aspects of their business, which may deem to be a bad use of the strategy of outsourcing.
If you’ve ticked off all the pointers in this blog, then it may be a good time for you to outsource, and what better place is there to outsource your business process than to have them with the creators of this blog themselves!
Mangtas serves as a bridge for vendors and clients looking into outsourcing their business services in many types of processes. Software development, lead generation, marketing management, you name it!
With Mangtas, we carefully vet vendors giving you the extra assurance that you have the perfect partner to work with you!
If you’re looking into outsourcing right now, we may just have the right partner for you, so don’t miss out on this opportunity.
Tap into Mangtas now and see how far your outsourced service will take you!