Is outsourcing a waste of money?
Many business owners do rely on outside firms to take on certain aspects of their business needs, but could it be that they are just flushing money down the drain? After all, saving money should be the priority, so there would be little point wasting it if the work outsourced could be done in-house.
Well, the answer to the question of the title depends on a number of factors. In some instances, outsourcing can be a waste of money. However, outsourcing to specialists can also be seen as money well spent, and can help relieve financial anxiety.
When Is Outsourcing a Waste of Money?
If the employer already has the necessary talent in-house, it might make better sense to delegate to an employee/team of employees. Especially when these staff members have time on their hands and are willing to take on tasks that may or may not befit their usual job description, it will be more cost-effective to hand these over to them.
Outsourcing could be considered a waste of money when a new hire could take on the task involved. Some tasks are required for the long term, such as marketing and accountancy, so it might make better financial sense to hire somebody proficient in these tasks instead of outsourcing them.
It’s important to consider the skills of an outsourced firm too. If they have no credentials to speak of and are lax with their workmanship, outsourcing to them would be a waste of money. There are times when outsourcing is necessary, but only when the people doing the job have the competence needed. In this instance, the business owner should commit to research before passing any responsibility over to anybody to make sure they will get a decent ROI.
When Is Outsourcing Money Well Spent?
There will be some tasks that simply can’t be done in-house effectively without the right people. Where there are no employees equipped to take on the relevant tasks, and when they are too busy to take on anything else, outsourcing should be considered.
Of course, the business owner might still resist the possibility, but there are reasons why outsourcing is cost-effective. When you consider the average cost of IT support services to the potential expense of restoring a business after a hacking attack, for example, you can see why outsourcing to such a service makes better financial sense.
Outsourcing is also cost-effective when you consider the long-term results of professional work. Consider web design, for example. Yes, a business owner could put together their own website using a free web builder, but to create a better first impression, a professionally designed website would serve the business better. Customers will always gravitate to businesses that look the part because of the trust factor.
The same applies to other types of outsourcing, including marketing, SEO, and blog writing. When the business owner doesn’t have the in-house team or know-how, they will always get better results if they hand over to a professional. Quality matters, and while the business owner could hire new staff members to take on certain roles, there is still a need for an outsourced firm in the interim.
Is Outsourcing a Waste of Money?
Sometimes yes, and sometimes no. The business owner should look at the people he has on his side, and at his own talents, before making a decision.