Three Tips for Better Outsourcing for Your Business

It consultancy services

Most entrepreneurs are aware of the advantages of outsourcing for their companies. There are few businesses, in fact, that don’t outsource at least one task that needs doing. About 42% of IT support services are outsourced, and about 38% of research and development — a fairly important task for most companies — is now outsourced out of the country.

When it comes to outsourcing for your company, there are a few things you should keep in mind in order to ensure that outsourcing is actually the right choice for your business. Not all tasks are best outsourced, and not all systems are great for supporting outsourced labor and the management of said labor.

There are a few mistakes many business owners are liable to make when it comes to outsourcing. Here are three you should try to avoid.

1. Cutting Managers Because You Cut Outsourcing

It can be tempting to see this as a great time to cut back on upper management. To an extent, this is sometimes possible. However, it’s worth keeping in mind that freelancers and contractors are not managers. They might efficiently handle their own internal processes, but they’re not going to be in charge of your business — and they’re not going to be invested in it the way an actual employee would be.

2. Underpaying Offsite Workers

According to Forbes, many employers make the mistakes of paying an offsite team too cheaply. Why? Just as in a real company, poor wages make unhappy employees. If you don’t want to constantly manage a massively high turnover rate, pay fair wages. This means something higher than the market price at the outsourcing location, but still lower than the price you would need to pay to do things in house.

3. Figure Out Which Jobs it Makes the Most Sense to Outsource

Although many companies often outsource marketing, this isn’t always the best idea, especially if you have the budget to support it. An outside marketing team can be great, but won’t necessarily understand the ins and outs of your current business like an internal employee would. On the other hand, it makes sense to outsource to IT support companies. Why? When you only have a small on-hand IT staff, it can be difficult for them to do everything that needs to be done. Larger, outsourced IT support companies can increase efficiency, get cheaper software, and compartmentalize. Your team will try to do everything at once, and inevitably come up short. About 49% of small businesses that outsourced IT reduced their overall costs by 25% over the first year, as well.

Would you outsource to IT support companies? What are your company’s business IT solutions? Let us know in the comments.