Outsourcing is the process of contracting part of your company’s work out to an external service provider. Software development is an area a lot of businesses elect to outsource, as well as IT support, accounting, and marketing. There are both advantages and disadvantages associated with doing so, and so there is no definitive answer when it comes to determining whether outsourcing is better than handling a certain task in-house. What it all comes down to is what is right for your company specifically. Keeping that in mind, in this post we will assess when it is wise to outsource and when it is not, so keep on reading to find out everything you need to know…
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DO outsource if the task is not critical to your business model…
Let’s say you have a search engine optimization project that needs to be completed. If search engine optimization projects do not make up the core of your business activity, it is a good idea to consider outsourcing. After all, it is highly unlikely that you will have enough projects to justify hiring a full-time marketing pro, and so outsourcing becomes the most efficient solution. You will benefit from a skilled workforce that will be able to plug in and out of projects as and when required.
DON’T outsource if you have the skill in-house…
If you have the right skills in-house, why outsource? You are simply going to be wasting your team’s talents. Instead, you should be looking to outsourced those activities that get in the way of your core objectives and waste your team’s skill set and time.
DO outsource when you do not have the staff or the resources to deliver the projects required…
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If you currently have the people, technology and infrastructure available internally to deliver the projects required, then, by all means, do so in-house. However, if you don’t, it’s wise to outsource. This is where outsourcing managed IT services really shows its worth. Tech is so important for businesses today but most companies do not have the capacity to handle IT support in-house. Otherwise, you will need to invest a considerable amount of time and money into getting your business to the stage whereby it can competently support all of the tech elements of your business. Do you really have the time and money to do this? And even if you do, is it worth using it when you could outsource to a skilled labor pool at a lower cost instead?
DON’T outsource when there are tools available online to help you carry out the task or even automate it…
A lot of companies pay for accountants to handle their books. This can end up costing a small fortune. In some cases, it is necessary. But if your finances are straightforward, why not use online accounting software? The same can actually be said when it comes to designing your website. Designing a site using a site builder is an attractive alternative for a lot of businesses, rather than outsourcing this. Nowadays, there are so many tools available, you can have a site designed in a matter of minutes.
DO outsource software development when there are not any solutions available that fit your company’s need…
As they say, why reinvent the wheel? If there are already solutions available that fit your business need, then don’t waste your energy on custom building software solutions. However, if you need software that is so custom-tailored no provider has come up with a way to do it right for your business, then you’ll have no option but to build it in-house.
DON’T outsource if there is not someone who can do it cheaper, faster and better than you…
Last but not least, this is essentially what it all boils down to. Can another company deliver better services and projects than you can internally? What’s more, can they do so at a faster speed and a cheaper rate? If so, it’s a no-brainer!
To conclude, hopefully, you now have a better understanding of when it is wise to outsource certain elements of your business. If you have the people and the technology to make solutions that work for your business and the task is an integral part of your company’s activity, you should definitely consider retaining this side of your company operations in-house. If not, begin the process of looking for the best service providers and make sure you choose wisely.
