Outsourcing has become a popular choice for small businesses that must focus on their core competencies and cut costs. However, as a business owner, deciding what tasks to outsource can be a challenge. You need to evaluate the benefits as well as consider the available and best options for your set-up. In this blog, we will look at the key factors to consider when deciding what tasks to outsource.
- Identify your core competencies/skills
Before deciding what tasks to outsource, you need to identify your core competencies and skills. These are the areas in which you have a competitive advantage and can deliver the best results by focusing on these tasks in-house as you have the knowledge and required inside knowledge that may be hard to secure externally.
- Evaluate the cost
Cost is a significant factor to consider when deciding what to outsource. While outsourcing can help reduce costs, it is crucial to evaluate the overall cost-benefit. You need to consider the cost of outsourcing tasks versus the cost of hiring an in-house employee to handle the work instead. You should also evaluate the quality of work and the level of expertise you would get from outsourcing.
- Determine the importance of the task
Some tasks are more critical to the success of your business than others. You need to determine which tasks are critical and which ones are not. For instance, providing excellent customer service is a critical skill that requires a high level of expertise and attention to detail. On the other hand, data entry may not be as critical to your business, and therefore much easier to outsource to a third party.
- Consider the level of expertise required
Certain tasks require a high level of expertise and experience. For example, if you need to create a website for your business, you may need to outsource to a professional web designer who does this day in and day out and therefore can ensure everything is set up and runs as efficiently as possible. Outsourcing such tasks will ensure that you get high-quality work as well as save time and money in the long run.
- Evaluate the scalability of the task
As your business grows, you need to evaluate the scalability of the tasks you are outsourcing. You need to ensure that the outsourced tasks can scale with your business without compromising quality or cost. For instance, if you outsource customer service, you need to ensure that the outsourced service provider can handle the increasing volume of customers as your business grows.
- Consider the level of control required
Some tasks require a high level of control and monitoring. For instance, if you outsource your social media management, you need to ensure that the service provider adheres to any brand guidelines you have in place, uses language appropriate for your target audience etc.
- Evaluate the level of risk
Outsourcing certain tasks may come with a level of risk, especially if the task involves sensitive information or confidential data. For instance, if you outsource your bookkeeping, you need to ensure that the service provider has strict confidentiality and data protection policies to safeguard your financial data. You may also need to sign a non-disclosure agreement with the service provider to ensure that your data is protected.
In conclusion, outsourcing can help small businesses reduce costs and focus on their core competencies. However, deciding what tasks to outsource requires careful evaluation of several factors such as cost, importance, level of expertise required, scalability, level of control required, and level of risk. By considering these factors, you can determine which tasks to outsource and which ones to keep in-house. Ultimately, outsourcing should help you achieve your business goals and improve your bottom line.
For help in this area talk to the team at McKenzie Consultancy & Legal.
Drop us an email at info@mckenzie-consultancy.co.uk or contact us here.
