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How Do You Know When to Outsource Your Business Processes?

May 12, 2017 Claire Ponsaran
How Do You Know When to Outsource Your Business Processes?

The best time to consider outsourcing as an alternative to growing your in-house support staff is when you’re starting to expand and you notice you’re hiring more people than your current resources can accommodate. Here are a few tips to help you figure out when exactly should your business outsource and which tasks you should assign to your outsourcing staff.

#1 Ask yourself whether or not your company is financially ready to take on more employees.

Hiring people as in-house staff means you’re also adding overhead expenses, such as insurance and health care benefits, and paying more taxes as a result. When you outsource, it’s the professional employer organization or service provider that will take care of these costs for you. And, when you move employees offshore your general and administrative costs will be drastically reduced.

Aside from saving on costs, you’ll also worry less about rearranging your office and purchasing new equipment for your new staff. Outsourcing to another location, preferably somewhere that will cost less to set up new workstations for employees, places this burden entirely on the shoulders of your provider. Your only worries will be how much you’ll be paying each month and whether the quality of work that your outsourcing staff produces each week is par for the course or better than you expected.

#2 Evaluate the level of expertise of your current staff and see how you can take advantage of a global workforce.

Your current employees may have been great at their jobs. You probably feel like there’s nobody else who can do their jobs as well as they can. But, you know… There are still many areas of your business that none of your employees are competent enough to handle. For instance, payroll and benefits management, healthcare services,  and even recruitment and other HR processes that can be done outside of your business.

Cutting down costs is not the only benefit of outsourcing. To small business owners, it’s an opportunity to hire people with the expertise that they or their current staff do not have. Outsourcing gives you the least expensive and less risky option to find professionals with domain expertise in different fields, such as healthcare, education and business support.

#3 Consider the non-productive hours and downtimes that come with some types of work.

Some lines of work make use of automation for greater efficiency. As a result, these jobs have a lot of non-productive hours, which you’ll be paying for if you hired an in-house staff. Outsourcing takes this burden away from you.

When you outsource, you pay only for the work that your dedicated staff produces on your company’s behalf. Your staff works on fulfilling your needs whether he or she uses automation or not. This means you’re free to assign all kinds of work to your remote staff.

#4 There are certain tasks that you absolutely dread doing because the results are depressingly underwhelming.

Many small business owners like to work things out for themselves. They often find themselves overloaded with tasks that may seem easy to do, but are time-consuming when executed. If you’re someone who thinks you’re saving money by doing everything yourself, then you should stop and re-think that process.

No matter how easy a job is, if it takes so much time out of your day, then you’re better off delegating that job to an assistant. Can’t find someone competent in your area and who’s willing to work for a reasonable amount you can afford? Consider outsourcing as your next best option!

#5 Look at your current employees and see whether they’re overloaded with work or not.

You know your business is growing too soon when your staff can barely meet the demands of your customers. When your employees are spread too thin, they tend to neglect the delivery of after-sales services because they would be focused on getting to the next customer and ringing up as many sales as they can in a day. What do you think will happen to your business when your staff can’t handle everything on their plates? It will be disastrous.

Outsourcing helps reduce the workload of your staff and keep them from burning out too soon. Business support extends your ability to provide after-sales service and satisfy your customers. It’s a win-win situation!

An Outsourcing Partner Makes a Difference

Once you identified a need to outsource, it’s important that you also take into consideration your ability to plan and manage your outsourcing strategy on a global scale. Offshore outsourcing provides an effective and efficient solution to your problem with resources management. It may even help you fulfill your dreams of expanding your market reach vertically and horizontally.

But, when you’re doing it wrong it will not help you at all. This is where a strong and resilient outsourcing partner makes a difference. The experience and expertise of an outsourcing company can help you navigate through outsourcing as you collaborate with other businesses on a global scale.

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