When Do You Outsource?

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A man thinking, looking to the left

Just because you can, doesn’t mean you should. The same thing applies when you outsource, you should make sure that you are doing it because it is the appropriate thing to do and you’re in the right situation to do so. 

According to Sun Tzu’s Art of War, timing is important. Even if you have a good strategy and plan behind you, it is only as good if it is appropriate for the situation. 

With those in mind, when is a good time to outsource? 

An overwhelmed boss

Your Company is Growing Fast

When your company is growing fast and tasks are starting to pile up. Also, when you are getting busier because of it. 

For example, your business is starting to become in demand, and customer support calls are also increasing. 

If that’s the case, then it is time to start outsourcing to save money and time.

Other everyday tasks you can outsource are accounting and administration. Yes, you might save money doing those on your own. However, you also waste precious time you can instead use to grow your business. So, is it really saving you money? 

A man on a unicycle in front of other employees

You Need Specialized Skills for Certain Projects

Some outsourcing companies specialize in some types of work. If you think it is better to employ them than train your in-house employees or hire another staff, then you should outsource. Also, if training and hiring mean you have to use more resources compared to when you outsource.

An Employee calculating the company's savings

It is Cheaper to Outsource a Function rather than Do it In-house

Sometimes, when you think you’re trying to save money by doing everything in-house, the effect is the opposite. For example, if your in-house talents or even yourself don’t have enough knowledge of certain functions, for example, bookkeeping, it is better to outsource. It saves you time and resources, plus you can focus more on crucial tasks that will grow your business.