When running a company, especially a small, start up venture such as the ones I handle as an entrepreneur, you will have to choose whether to outsource a task and whether or not you should relegate these tasks to in-house recruits instead.
Outsourcing has been part of businesses for the longest time, and helps other companies to save time and money. It also fosters trade between other companies and creates more job opportunities.
For example, I once required some engraved metal tags for a small project that I was doing. The metal tags are to be personalised and attached to the products that I wanted to sell, as a limited edition offering.
Since none of my employees were specialising in metal working, I decided to outsource the tags to another company. The company specialised in cutting metals using a laser, which made it easier because they have the experience and the equipment to do it for me.
In fact, outsourcing can be used for practically any aspect of your business. Whether it is through accounting, web design, manufacturing, and much more, outsourcing can streamline any process. The trouble is when to decide to outsource a task and whether or not it would be more beneficial to source in in-house instead.
Here is a short guideline to help you decide when to outsource a task.
When the activity isn’t central to your operations and to generating profits
Often times, an activity simply is not central to your operations and simply is not entirely part of generating your profits. It can be easier to just allow someone else to handle the task for you instead of focusing on it and using up valuable resources.
When the job wastes time and money because of routine
You should also outsource a task if it is a time waster that costs you money. If doing it in-house costs your employees time and does not allow them to focus on their primary tasks, you may need to outsource. The most common outsourced task due to routine is accounting.
On the other hand, Here is a video tutorial about the best outsourcing strategy:
When the task is only a temporary venture
Like my metal tags mentioned above, temporary ventures are best outsourced. This is the case if you require something on the more creative side or if your company needs something only for a short time, such as during an event or convention.
When the task is more cost efficient if outsourced
If it is cheaper and more cost-efficient to outsource a task, it is a good idea to do so. For example, a large animation company would prefer to work on primary animation and would relegate the tasks to an outsourcing company for when they need to do in-between animation.
Since it is cheaper to outsource it to junior animators than the senior ones, it becomes more cost-efficient, increasing your profits.
When the task requires highly specialised skills that your employees lack
Certain, highly specialised skills can only be provided by an outsourcer. If your employees in house simply do not have the skills to do a task, it is better to outsource. This kind of work can be temporary, until your in-house employees can learn the skills required.