To Outsource or Not to Outsource: That Is the Question.

In this economy, outsourcing is all the rage. Try Googling “outsourcing” and see how many results appear. A lot, right? But why are so many companies jumping on the outsource train? Well the answer is quite simple: its more cost-effective. However, even though outsourcing may not be draining your bank account, there is one thing you are losing and that is control. The ability to control all aspects of your business, which back in the 1990′s would all be under one roof. So the question remains, which parts of your business can be outsourced and which parts should remain in-house?

 

For example, say your core business is a wedding planning business and you wanted to design a website that allowed your customers to view your most current work. You could design your own company logo and website, but the differences in the end result between doing it yourself and hiring a professional can be significant. Therefore, outsourcing allows you the time to focus on your business and not become an expert in someone else’s.

 

However, there are some aspects of your business that you should not outsource and you should be monitoring at all times! These include cash-flow management and, in many cases, customer interaction.

 

Perhaps the biggest benefit of outsourcing is its ability to save you money. For example, many companies are beginning to outsource their IT services (help desk, computer support and maintenance), and pay significantly less than hiring a full-time IT person to give the same level of support. If IT is not in your core business, outsourcing this could save you time, instead of racking through technology blogs and calling manufacturer help desks to troubleshoot your problem.

 

Although outsourcing has many advantages, there is one disadvantage that seems to deter many businesses: you are putting part of your company in someone else’s hands. Losing control of some aspects of your business can be a scary process. Trust is the biggest part of an outsourced business relationship, which is why if you are going to outsource any part of your business you should these guidelines in order to find the best company possible for your project.

 

Helpful Steps to Outsourcing:

  1. Do your research. Look for online reviews about this company. Whether it be on Yelp or an industry-specific review website, make sure people are saying good things about the company’s services.
  2. Don’t put all of your eggs in one basket.  Call a few vendors, not just one. Get a feel for the industry rate for their specific service. Price does matter, but doing the job well matters more, especially when the job is outsourced. You don’t have time to find a new vendor every month.
  3. Get a thorough quote.  When they give you a quote, make sure that each part of their service is broken down. You want to know what you’re paying for.
  4. Call their clients.  See what their clients have to say about their work, their professionalism and turnaround time.
  5. Meet with the company in person.  You may get a good vibe on the phone, but just like any relationship, you want to make sure that you can work well with them. Because after all, it is your business and your reputation in their hands.

Good luck & happy outsourcing!

 

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