When You Should (and Shouldn’t) Outsource

August 19, 2021

Whether you are a startup company or an established one, you might be wondering whether to outsource or keep the work done in-house. 

Today, with the help of new software and apps, almost every task can be outsourced. And because of this, deciding on what tasks to outsource can be complicated and overwhelming. When is it better to outsource a task, and when is it better to have someone in-house?

Here’s a quick guide:

When You Should Outsource

• You require fresh and better ideas. Creative block happens to the best of us. To get the creativity flowing again, you might need new minds with fresh, exciting ideas and strategies to bring to the table, and outsourcing might be the key to overcoming that block.
• You require the experience you lack. You can’t be great at every single thing you do. To focus more on work and what you’re good at, why don’t you have someone else do the other tasks? Someone who’s already skilled at that job? Not only do you produce better, quality output yourself, but the outsourced work is also done by an expert. Like the father of management once said, “do what you do best and outsource the rest!”. 
• You want to save up. Whether you’re a startup or not, saving money is crucial to business survival and growth. In instances where you need someone to do tasks for only a couple of hours a week, outsourcing might be more cost-effective. Rather than paying someone full-time and spending more on office expenses, you can have someone else work part-time and save on salaries.
• You’re growing exponentially.  If your company is growing exponentially, then you’ll need to add more team members. Outsourcing is a cost-effective solution because of lower salaries. When you outsource to the Philippines, you’re not pressured into giving Australian rates. You can get the same work output at lower rates. Business growth doesn’t mean you should be increasing expenses exponentially too – save money where you can.

When You Shouldn’t Outsource

• You need someone on site all the time. If their work requires them to be physically present on-site 90% of the time, then the work cannot be outsourced. 
• You need someone to attend physical meetings.  The technology today allows us to conduct virtual meetings easily and smoothly. We can plan and execute projects  with members from across the globe. But if you require physical, face-to-face meetings,  then outsourcing won’t work for you.
• You need someone handling sales and client meetings. There are some industries that require the sales team to meet with prospects. That’s usually the case when selling big ticket items or services that need explanations and demonstrations. For these instances, it’s best to have someone in-house who knows your business deeply and can be physically present when meeting prospects.

Are you ready to explore your outsourcing options? Read more about what you can outsource with Outsourced HR Solution at www.outsourcedhrsolution.com.au/services.

If you’re wondering whether to partner with a BPO company in Clark, Philippines, then read our article on why Clark is the best location for outsourcing.

If you still need help deciding, we can always have a chat. You can give Tony a call on +63 917 700 6006 or drop an email to tony@ohrs.com.ph. Tony can help you figure out what tasks can be outsourced and what arrangement best suits your business.

Here are three things you should keep in mind in making that decision:

1. Your financial situation
2. The available skillset
3. Your business needs