Outsourcing and when should I do it?
Outsourcing can be defined as “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources”.
Entrepreneurs have long seen outsourcing as a strategy reserved for big business only. However, nowadays this approach has changed significantly. More business owners start to realise the advantages of outsourcing their business to third parties. Here are some of the advantages of outsourcing your business:
- Reduce and control operating costs.
- Improve company focus.
- Gain access to world-class capabilities.
- Free internal resources for other purposes.
- A function is time-consuming to manage or is out of control.
- Insufficient resources are available internally.
In the early days, cost or headcount reductions were the most common reasons to outsource. In today’s world, the drivers are often more strategic and focus on carrying out core value-adding activities in-house where an organisation can best utilise its core competencies.
When should I outsource?
Our advice is AS SOON AS POSSIBLE. Most of SME companies realise the benefit of outsourcing when it is already too late. Do not wait till your employees are unable to manage day-to-day tasks and build the business satisfactorily. That’s not the only time to consider outsourcing…
The best time to use outside resources is just after company’s establishment. That creates an incentive for businesses and companies to allocate resources where they are most effective. It will also save time for business owners to:
“Focus on what you do the best, and others will do the rest”
What should I outsource?
A good starting point is your finance activities. Instead of hiring full-time Bookkeepers, Financial Controllers and a lot more…You can just have a part time Finance director who deals with everything at the same time. This will not only save you money but also your time!