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When Should You Outsource or Keep It On House

Contributory

by | Dec 18, 2017

When Should You Outsource or Keep It On House

If you are thinking about whether to outsource a particular task or keep it in-house, it can be a difficult decision. You don’t want to relinquish control, but you are aware that outsourcing brings many benefits in certain cases, and you are wondering whether this is going to be one of those cases. So, how do you make up your mind? Read on to discover the key questions you need to ask yourself when determining whether to outsource a part of your business or keep it in-house.

Is the task getting in the way of your core activities?

Think about the reason you started your business. What are you trying to achieve? What is the main focus of your business? This is what makes you profit. If you are spending more time on this task in question, rather than on the core activities of your business, it could be a good idea to outsource. You will find that you can spend your time more efficiently by focusing on doing what you do best and letting someone else focus on the likes of marketing and accounting.

Is it cheaper to outsource or keep the activity in-house?

You need to take a look at the financial side of things. It is important to assess things as a whole, as outsourcing can be more expensive in the beginning, but in the long run, it may be more costly to keep things in-house. This is why it is a good idea to do your calculations over the period of a year to get a true reflection. Whichever works out cheaper is often the best route to go down. After all, you don’t want your business to spend more money unnecessarily.

Do you have the expertise in-house?

If you don’t have the expertise in-house that is required to carry out the task to the high level that is needed, then outsourcing is definitely a good idea. Managed IT services are a great example of this. Most businesses rely on technology today. What would you do if your systems shut down or you were breached? Extended downtime can be a nightmare for any business, which is why outsourcing is often the best solution.

Is this a one-off project, on going work, or seasonal work?

With outsourcing, you only pay for what you need, making it ideal for one-off projects and seasonal work. Alternatively, if this is something needed on a daily basis, you may want to look at setting things up in-house.

So there you have it: the key questions you need to ask yourself when determining whether to outsource something or keep it in-house. If it would be cheaper to outsource, and it is a task that is getting in the way of your core activities, the case for outsourcing is evident. Plus, the good thing is that you are only going to pay for what you need, so if outsourcing does go wrong, you’re not going to be stuck with this decision forever.

xoxo, Karmen K

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