I recently had to call the customer service line for t-mobile, and was surprised by the accent of the person who took the call. Usually, the customer service agents were Scottish, but on this occasion, I found out that I was speaking to someone in the Philippines. The call was easy, and I got what I needed to sort out done with the same ease as I had in the past – perfect!
This is an example of outsourcing – paying another person or individual to provide a service for you. Obviously, taking customer calls is a big project, but for the business mums with a smaller budget that t-mobile, you can do the same on a smaller scale (with a virtual assistant, for example), you can outsource your website creation and updating, basic research into your competitors…the options are limitless.
Outsourcing (basically paying someone to provide a service for you) can really be beneficial for a number of reasons. The main thing is that it means you don’t have to pay a permanent salary – you can commission industry experts to work on a specific project, which means you get the best quality without having to pay long-term fees. If you outsource wisely, it can free you up to do the things you enjoy doing in your business.
When and what you should never pay someone else to do it
However, there are some situations when outsourcing is not a good idea. In these situations it is best to keep the work in-house, or do it yourself.
1. When paying someone else to do the work is too expensive
One of the main advantages of outsourcing is to reduce costs. If you get a big contract and you just need an extra pair of hands, then you can outsource some of the more time-consuming work so that you can better use your time, and this will also save you on recruitment costs, and the other costs associated with employing someone.
That said, if it is too expensive to outsource, and you end up making a loss or not gaining from a big contract, then it probably isn’t worth doing. This may include a situation where the cost of outsourcing to a highly specialized expert exceeds the budget for the project. Fees for individuals with highly specialized degrees or areas of expertise are often quite expensive.
3. When outsourcing makes you lose control of your business
Even when tasks or projects are outsourced, you still need to project manage it. So, if you outsource your tax return or end-of-year accounts to a bookkeeper for example, you still need to keep close tabs on the progress of tasks because you’re the one who has ultimate responsibility for the completion of the project.
Another scenario is when the individual or company won’t give you access to or send you files or documents for the work you have commissioned them to do. You should never be excluded from participating in making decisions regarding the project, either, so if you start to feel this way then it really is a warning sign that something is not quite right.
Before you outsource any work make sure you agree on the criteria for the management of the project. Depending on the length and complexity of the project it may also be wise to schedule regular meetings (or conference calls) to get updates on the progress of the project. During this time the contractor should provide you with all documentation necessary to evaluate the progress of the project and verify it is still on track for completion by the established deadline
3. When there is a legal requirement that you carry out the work yourself
Sometimes outsourcing is not a good idea simply because it is not permitted by contract requirements. If you have been commissioned to carry our a piece of work for another company, for example, it may be part of the terms and conditions that you do not involve another party, so check the small print first.
