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Should You Outsource or Stay In-House? Let’s Look at the Facts

Businesses no longer have to employ full-time staff. Instead, they can outsource. Outsourcing is sending work out to an external agency, in order for it to be completed. Some departments are outsourced more than others, like HR, payroll, accounting, and customer support.

However, just because outsourcing is possible, that does not mean that it is always the best option. If you are a business owner, you need to carefully weigh up the advantages and disadvantages of outsourcing, so you can make the best decision for you and your company.

This post will help you to decide whether you should outsource or stay in-house.

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Better Tech

One of the main advantages of outsourcing is that you’re able to make use of the latest industry tech. If you are the owner of a small business, then you probably won’t have the same technology that a professional outsourcing agency would.  That said, not all outsourcing agencies are of the same quality. You shouldn’t assume that an outsourcing firm will have better tech than you, without first researching. Take some time to read an agency’s reviews, see what past customers have to say, and read any information they have about themselves on their website. If you are interested in working with an agency, then you can always reach out to them and ask them to tell you about the software and technology that they use.

Saving Money

Another advantage of professional outsourcing agency is that it can help you to save money. At the moment, businesses from a range of different industries are feeling the squeeze. There is a cost of living crisis going on, and people are not able to buy products or pay for services as freely as they were able to a few years ago. 

Outsourcing can mean that you don’t have to employ full-time staff, which therefore means that you can save yourself an absolute fortune. The cost of outsourcing is usually significantly less than just a single employee’s salary, provided they work minimum wage.

Expert Help

When you outsource, you are given access to expert help and support from people with a wealth of experience. Also, the software and technology that are used by these agencies enhance their usefulness. Going back to cost savings again, when you outsource and are given access to highly trained individuals, you are able to save even more money.

The reason for this is that you don’t have to go out and hire people with experience. More experienced staff typically demand higher salaries. When you outsource, you get experienced staff, without having to pay them full-time salaries.

Unnecessary Costs

However, outsourcing isn’t always a good way of saving money. If you are the owner of a small business, then outsourcing could be completely unnecessary. It’s easier for small businesses to manage things themselves, rather than to outsource them. An alternative to outsourcing is to use automation software. You can find HR, accounting, payroll, and many other types of automation software online.

The only downside to using this software is that you have to manually input information and data, in order for the software to process it. While manually inputting data can be time-consuming, it will save you money. You should only consider working with an outsourcing agency if your business is large enough to justify the cost of it.

Setting Schedule

Another disadvantage to working with an outsourcing agency is that you don’t get to set the schedule. The people you have outsourced work to work according to their own schedules, you get no say in it. You can set deadlines, but you can’t tell people when to work. This gives you less control over the work that’s produced. Some business owners don’t mind work being completed according to somebody else’s schedule, and some hate it. When you have a team of full-time staff working for you, you can set their schedule.

Emotional Investment

One last thing to consider is an emotional investment. When you have full-time staff working for you, they are going to be more emotionally invested in your company than staff from an outsourcing agency could ever be. Emotional investment is always something that’s worth thinking about.

Staff who are emotionally invested are more likely to work overtime, work harder, and put their heart into their work. People who have no connection to your company other than through an outsourcing agency are not going to do this for you, because doing it does not benefit them.

In summary, if you own a very small business, then outsourcing might not be a good idea, because it could be too expensive. However, if your business is large (or is growing) then outsourcing could be a highly effective way of saving money and streamlining processes. Also, it is a good way of ensuring that work is completed to a satisfactory degree.

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