Pros and Cons of Outsourcing

Outsourcing is a very popular option for employers today as the internet has made it easier than ever for employees and staff to be located offsite, and for companies to hire out a number of tasks and even entire departments. Before you decide if outsourcing or keeping staff in-house is for you, note these 3 simple considerations.

1. Finding the Right Person or Company

When you hire in-house staff or outsource, you need to find a qualified person or company and each choice has its own unique challenges. For in-house staff you must interview potential candidates and check their background and references, and go through a long training process. When you outsource you must find someone that specializes in what you need, and that also has the qualifications or equipment necessary. Both can be time-consuming but both can also give you a chance to find just the right fit for you and your company.

2. Advantages and Disadvantages

Both outsourcing and keeping staff in-house have their advantages and disadvantages, and these needs to be considered carefully before making a decision. The cost of working with an outside agency can be more than the cost of paying an employee even if you provide additional benefits, and finding a qualified company can take as much time as finding a qualified employee. On the other hand, outsourcing can mean saving money because you only commit to work you need done when it needs to be done, and can stop your work with an outside company at any time.

3. Choosing the Right Work to Outsource

What work is the most popular to outsource? Not surprisingly, IT departments are the number one outsourced staff and some 60% of companies outsource their computer work today. Clerical and accounting are also typically outsourced. Social media and other forms of marketing are outsourced by some 33% of companies, and payroll is also easy to outsource, as well as bookkeeping and research. These tasks can easily be done offsite and companies can pay on a per-project or as-needed basis for this work.

Before deciding on outsourcing versus keeping in-house staff, be sure you understand how this process works and don’t fall for misconceptions about the process. For instance, outsourcing doesn’t always mean sending work overseas and it doesn’t mean working without a contract or prior meetings with potential companies. It’s also good to ensure that you will actually save on costs if you decide to outsource, so be sure you do your homework.