Points to Consider When Making Outsourcing Decisions

You have built your business to a point that it is operational. You have chosen the key personnel tasked with the important aspects of business. You have some customers and for a startup, it’s already an accomplishment to establish that in a short time. What you need to do is to focus on growing the customer base, and growing the business. You want to be sure that no opportunity to make profits is wasted.

Like many other businesses, a cost effective solution is available to help you achieve those goals without delay. By considering outsourcing you are giving the business the attention it needs to achieve the immediate business goals.

In order to make sure that outsourcing will indeed help you grow the business, you need to consider the following:

Identify the functions to Outsource

Not all aspects of your business need to be outsourced. There are some areas that you need to keep in-house. For example, a successful catering business should not outsource the actual food preparation because it is the core of your business which should give you the edge over your competitors. If you have no control over the quality of the food being served, you are giving no competition to other companies. Keep aspects of the business you consider a core competency and outsource the rest.

What to Keep In-House

Human Resources

The worst possible thing that could happen to an employee is probably receiving a termination notice by email from a Human Resource Department remotely operating in India. That would be very impersonal. Since your business still keeps its own workforce, it would not hurt if management of employees is retained in-house. You don’t want employees badmouthing your company about how humiliating your policy is about letting people go. You would still want former employees walking away saying good things about your company.

Anything that Has Legal or Political Risk

Keeping all operational functions that require confidentiality should be kept in-house. You’re talking about drafting contracts, agreements, or work involving research and development, trade secrets or operational risks. You should not hand these areas out to outsourcing companies. Keep transactions of influential clients within controllable reach so that you can control and ensure the quality of service rendered to special clients like them.

Quality Control

You set the standard of quality your company needs to maintain so you cannot expect outsourcing companies to recognize and acknowledge the same exact standards. In terms of products, an in-house quality control will make sure that no substandard product is released. In the case of quality control being handled by an outsourcing company, they can start to slip and be careless since they are often removed from a healthy feedback loop with clients and customers. Hence, they have no motivation to ensure consistent quality of goods and services.

All the other areas of your operations like administrative support, data encoding or other highly repetitive tasks, brand-driven marketing, or employee-focused services should be outsourced so that the company will be free of burdensome overhead costs which can be diverted to revenue-generating activities or expansion plans.

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