We found a fact that less than 15% of business owners and managers feel like they’re spending their time on the right activities. This is a very concerning number.
However, 78% of them feel happy and feel a positive impact if they outsource their work. The most dominant job is 53% in the IT field.
Then how do we know the right time to decide on outsourcing? In this article, we will answer and assist you in upgrading your business to the next level. Find out “aha” from each of our discussions.
When should a startup outsource?
When should a business decide to outsource? We found several accurate sources that have something similar to say about this.
1. Have a Limited Budget
If you are looking to save money, outsourcing is a popular remedy that many companies turn to, especially when faced with economic uncertainty. Timing is crucial, and it’s up to you to determine when outsourcing becomes a suitable option.
Cutting down on unnecessary expenses and optimizing back-office operations to save costs vary from one company to another, but the benefits of outsourcing remain consistent. It allows companies to focus on their core competencies by investing funds where they can make the most impact.
Perhaps your priority is to redirect more resources into sales and marketing to increase revenue, or maybe you have already eliminated some positions and are looking for ways to fill the gaps. It could also be that you require more work completed, but budget constraints prohibit hiring. Despite these reasons, outsourcing provides a tailored solution to meet your requirements.
2. Need to Focus on Business-Critical
Recruiting employees with skills, not within the scope of your core business can be a burdensome, time-consuming, and expensive endeavor that could hinder your business’s growth. Instead of utilizing valuable resources to attract, train, and retain talent in areas that are not within your company’s core competencies, it may be more advantageous to consider outsourcing.
Numerous companies are contracting out their digital, accounting, back-office, and customer service responsibilities to third-party providers, thereby enabling them to concentrate on their primary field of expertise and increase productivity.
Outsourcing companies are widely available to assist businesses with tasks that are beyond their core competencies. Even if you are industrious when it comes to performing bookkeeping or attending to customers, it may still be prudent to seek help from third-party contractors if those activities are not part of your business offerings.
This decision can enable you to prioritize your core offerings, expand your operations, create more products or services, and even bring in more customers. Timing is crucial, as clarified in this article.
For small companies that are expanding into mid-size organizations, creating growth strategies and striving for development can be difficult if much of the company’s resources are consumed by continuously recruiting front and back-office personnel that could be outsourced.
3. When Business Needs Growing Fast
Those who have led or helped lead a startup or business in growth mode know how exciting it is when things get going. Your production has improved, your customer base is growing, or growth is on the horizon. It’s an amazing feeling that also comes with a side of “What do we do now?” Growing fast brings a certain set of challenges, and many organizations need help here. Again, now is the time to outsource. Hiring is another consideration when scaling. You can outsource your non-core skillsets if hiring a new team holds you back from growing at the speed you want.
How do you determine if you should outsource?
Before you decide to outsource, it’s important to do your due diligence. Ask yourself the following questions:
- What tasks are taking up the most time and causing the most stress?
- Do these tasks require specialized skills or equipment?
- How much time and money would it take to train an in-house employee to handle these tasks?
- Can you afford to outsource these tasks without compromising your bottom line?
What are the 4 factors to consider before outsourcing?
When considering outsourcing, there are four key factors to keep in mind:
- Cost: Is outsourcing more cost-effective than hiring an in-house employee or performing the task yourself?
- Quality: Will outsourcing improve the quality of the task or service?
- Expertise: Does the outsourcing provider have the necessary skills and experience to perform the task at a high level?
- Control: Can you maintain control over the quality and timing of the task, even if it’s being performed by an external provider?
How do you know when to insource or outsource?
Sometimes, it makes more sense to keep tasks in-house rather than outsourcing. This might be the case if:
- The task is a core function of your business
- You have the necessary expertise and resources to perform the task at a high level
- Outsourcing would be more expensive or less efficient than handling the task internally
Ultimately, the decision to insource or outsource should be based on a careful analysis of your business needs and resources.
In conclusion, outsourcing can be a powerful tool for startup owners looking to improve efficiency, reduce costs, and maintain quality. However, it’s important to carefully consider your options before making any outsourcing decisions. By keeping cost, quality, expertise, and control in mind, you can determine whether outsourcing is right for your business. Remember, outsourcing isn’t a magic bullet, but it can be a valuable tool in your startup toolkit.
Furthermore, if you need the best provider to support your project now, We can provide you with a team or developer to fill the gap in your project. As Startup Developers Indonesia, we have helped international startups in their project such as building custom software, mobile apps, prototypes, and MVPs for more than 8 years. Having large capacities, startup experience, and proven development processes make us stand out now.
Take a look at our profile what service can help you to boost the growth of your business. If you find a need that is relevant to you there, don’t hesitate to drop a line or message to our expert and we’ll respond to you quickly. We are experienced in addressing the business needs of both corporations and startups. Also, we’d be happy to assist you!