The new year is often marked as a time to reflect and prepare for the future. After a tough financial year, many businesses will be looking for ways to save money and protect their bottom line. Outsourcing has been proven to help cut costs whilst maintaining or improving the performance of a business. Outsourcing isn’t a one-size fits all solution, however, which begs the question – is outsourcing a good idea for your business? Here are the pros and cons of outsourcing services like marketing or facilities management for your business in 2023 and beyond.
If you could run your business without help, you wouldn’t need to hire staff. However, as a business owner, you only have so many minutes in the day – which means you need help. The more tasks you choose to oversee in-house, the less time you’ll have to devote to their management. This is where outsourcing can help. When outsourcing, you hand over the management of a given task or business function to a trusted third party who oversees this for you. This will free up your time to focus on other areas of your business.
Pro: Cost saving
Outsourced services are often provided to contractors that have multiple clients to rely on for their income. This means they are able to charge less than a business or employee who depends on you entirely for their income. By outsourcing, you can ensure that key tasks are completed for a smaller cost than it would be to cover these costs in-house. Outsourcing can help to free up funds that you can use otherwise such as reinvesting the money back into your business.
Pro: Ease of transition
Firing an employee, no matter how problematic they may be, isn’t easy. There are certain legal steps that need to be taken, which can be both time-consuming and costly. Terminating a contract due to a breach, however, is much easier to do as the relationship and expectations will be clearly outlined in the agreed-upon terms. This means that if you need to make a change, you can do so in a timely manner.
Bringing in a third party means that they won’t have gone through the same hiring process as your other staff. This means that there can be some bumps in the onboarding process if they don’t understand the systems or the culture of your business. You can prevent this, however, by having a clear onboarding process.
Con: Less oversight
Outsourcing can also present the risk of reduced oversight. This can lead to issues with monitoring tasks and how they’re performed. To avoid this, establish clear communication and trust with anyone with whom you may outsource tasks and can limit the risk of this occurring.
When making the choice to outsource or not, be sure to consider these pros and cons carefully.