Running a business effectively requires a lot of different roles and functions. At the beginning, when a business is starting up, people working there can often wear a lot of hats and fill multiple roles, and some functions may not even be needed yet – for instance, if you start a business that is just you and a business partner, or you only hire freelance workers, you won’t need an HR or payroll function yet. If you don’t have many clients and can handle all incoming calls yourself, you won’t need a receptionist yet, and so on.
However, as a business grows in terms of staffing and client base, the need for extra units and processes within the business will always emerge. When this happens, you have the choice between hiring people to fill those roles and outsourcing to a third party. Here we look at when outsourcing is the best option:
What Kinds of Roles Can be Outsourced?
Almost any administrative or technical function can be outsourced. This includes things like technical support, contact centers, accounting, recruitment, and HR. You can see from this HR outsourcing Illinois company what kind of arrangements you can make to outsource your HR needs.
When is Outsourcing Better Than Hiring?
There are several reasons why you might find it more cost effective to outsource rather than recruit new employees to fill a gap in your business.
One is where you need a function to be present but the demand you have for it isn’t enough to warrant making it someone’s dedicated job. Another is if you only need it at times, such as for at certain points in a project.
Another reason you may favor outsourcing is it allows you to keep your core team small and focused on what your business actually does and have any administrative overheads or technical issues taken care of by experts.
Other Benefits of Outsourcing
There are actually further benefits to outsourcing, too. If you hire staff, you will often need to find office space for them and provide them with equipment. When you outsource, unless you need the people you are outsourcing to to work at your site, you don’t have to worry about this.
You also get all the advantages of having an expert filling the role you need without having to provide employee benefits or having the same level of liability for things like workers’ compensation as with an employee.
Is Outsourcing Efficient?
Typically, it is very easy to work with outsourcing companies and you will have a point of contact you can always reach to assign tasks or get updates. When you are discussing potential contracts with outsourcing companies it is a good idea to go through exactly how they work with their clients and what this would be like in the context of your business.
Outsourcing can often be a great way to improve your business without expanding your staffing and can let your team put all their time and effort into what your business does best.