It is no secret, that managing a small business well, is not a walk in the park. In fact, any business owner knows that entrepreneurial success means hard work, patience and perseverance. Thus, business outsourcing has become an integral part of our economy. A wide range of outsourcing services is now readily available to businesses worldwide. These include assistance with employee recruitment, product or service management, consulting, manufacturing and client representation. Countless books on outsourcing such Outsourcing Agreement: A Practical Guide by George Kimball and Information Technology Outsourcing Transactions: Process, Strategies and Contracts by John K. Halvey just to name a couple. Really, there is no right or wrong answer when it comes to outsourcing your business simply research well and follow your instinct.
Even so, I’d like to discuss with you, the pros and cons of outsourcing. My goal in writing this post is to help you make an informed decision about whether or not outsourcing is for you. Once you have carefully gone over the pros and cons, your next step is to determine if outsourcing suits your business style, goals and needs.
The Pros List:
1) Outsourcing gives you the opportunity to think more critically about your skill set. Ask yourself “what do I truly excel at?” “What tasks would others be better at than I?” Going through this type of self assessment can give you a new perspective and focus your overall efforts. This way you won’t have to know it all, and rely on others to get the job done.
2) Making the right cuts can be easier with outsourcing as it potentially offer greater flexibility and freedom. You might even find it less of a challenge to keep employees on task and keeping yourself on target. You are likely to continue to do your job well and maintain a positive environment.
3) Imagine being able to save money like never before. Of course, your company size and the scope of outsourced responsibilities. For instance, an IT business will save considerable cash simply by outsourcing its services rather than paying someone locally. Other tasks like bookkeeping and administration can also be done out of office for optimal cash flow.
4) Time Management is everything when it comes to business. Professional recruitment agencies can be the answer to your prayers when it comes to finding the best candidates to represent your company’s values and vision.
The Cons List:
1) If taken too far, outsourcing can quickly turn into a risk. Make sure you understand exactly what products and/or services you are outsourcing and why. Be ready to answer this important question: does your decision to outsource, coincide directly with your long term goals and objectives?
2) Customer Relations and finance management should probably not be outsourced. Keeping in good standing with your clients is something that cannot and should not be outsourced. This is strictly your responsibility and how well you do this, will reflect directly on your business. You should probably probably keep a close eye on your financials.
3) If you are prepared to give up control of your own company then outsourcing might be for you. Keep in mind that trusting someone else with your business means having the faith that they will respond to business growth appropriately and evolve along with you.
4) Producing favorable results isn’t always easy with outsourcing. It’s impossible to ensure a positive experience at all times. Choosing to outsource, can drastically undermine your objectives and put a cramp in your overall business culture.
Think carefully before considering outsourcing as an option. What value if any does it add to your business? Does it make practical sense to outsource? I’d advise you to use your business know-how and intuition.
