Is Outsourcing Always The Answer To Business Troubles?

The decision to use outsourcing companies is a big one for all business owners, especially at beginning stages. Here are four considerations before deciding which tasks to delegate to service providers...

Four Considerations For Business Owners Before Outsourcing

When we hit snags in business, whether we’re struggling to stay financially secure or we have problems within the business in terms of our employees, outsourcing inevitably comes up as a topic that can “save” the business. But as outsourcing is a popular approach, is this something that's overused?

Is it really the best answer?

Is outsourcing always the answer to business troubles?

Below are four considerations before you make a final decision.

What Is The Current State Of The Business?

In other words, how far developed is your company?

At the very beginning of a business’s life, there can be a distinct lack of identity. For many owners, they need as much help as possible, and this is where outsourcing can really prove to be an asset.

It's something that many budding entrepreneurs have done: Get friends and family on board. If that will not be your most optimal source of support, you'll need other dependable resources. Especially if your business only has a handful of employees. If you want to transcend to the next level, outsourcing can be beneficial.

What Are The Skills Of Current Employees?

The skills gap can be a constant issue.

When it's something like technology, delegating to an IT services vendor can be a wise option. Ntiva is a reputable IT consulting company that works to fill the skills gap, as well as protect the business with a blueprint going forward.

Due to the numerous contemporary data breaches, business leaders need to do more to protect their information. Not addressing this will result in a lack of distrust from clients and customers.

When you have an understanding of your team's strengths and weaknesses, outsourcing to service vendors or individual contractors can help to improve your operations in the short-term. In turn, you should see greater progress as you work to evolve your brand.

Also keep in mind that creating good working relationships with contractors provides excellent options to choose from when you are ready to hire additional team members full-time. One of the major outsourcing benefits!

What About Business Culture?

When a starting a business, the overall culture of the company is not yet developed. You're starting from square one with trust and good working relationships.

If you have a skeleton staff, they may very well be tight-knit, but if you've got a handful of outsourced contractors, there can be a big division between the two camps -- The permanent employees and the outsourced workers. Truthfully, if you are striving for an environment that's nurturing, outsourcing can undo a lot of the related efforts.

Ultimately, we outsource to cope with significant workload. All team members should have the same commitment to getting the work done. However, if your company's business culture is one only about the work, and there are no positive relationships forming as a result, outsourced staff could be partly to blame.

If you really want to build up a business where trust is one of the fundamental tenets, outsourcing might not be the best answer.

Will Outsourcing Cause Lasting Damage?

Imagine: Permanent employees constantly butting heads with the contractors. This is a pretty unstable working environment, right?

Outsourcing can show you exactly where you are going wrong, and may force team leaders to rethink entire company infrastructure. In turn, these changes could cause a lot of worries within the ranks.

Companies that make significant restructuring efforts can find key employees resistant to change. If there is change too much, employees could decide to jump ship. So, the question CEOs and business leaders must ask:

Are you prepared for a lot of change?

You are probably using outsourcing services as a way to get an extra bit of help in the short-term. This may help you realize that you have to push harder to prove the company reputation, resulting in unexpected changes. These changes may result in:

• Negative feedback
• Displeasing working environment for some
• Short-term productivity loss 

It's a double-edged sword to consider.

Conclusion

Financially speaking, some types of outsourcing will usually be a good option, because it's less expensive than permanent workers. But, as mentioned above, there may be culture clash. Additionally, team leaders will quickly see strengths and weaknesses within the company operation. 

Be prepared for shake-up. And also to change the formula of team member duties and which tasks are delegated to contractors.

FJ