Did you know companies spent north of $700 billion on outsourcing in 2022? Meanwhile, 37% of small businesses outsource one or more business processes. It’s clear outsourcing is a business space trend with plenty of runway ahead.
Some companies have the wherewithal and desire to do everything in-house. However, even businesses that can technically do everything themselves can potentially benefit by outsourcing processes and procedures to third-party service providers.
Before going this route, however, companies need to think strategically to see what should be done in-house and what can safely be left to reputable outsourcers.
Consider these six signs your business should consider retaining the services of an outsourcing company.
- Overwhelmed Employees
Your business should consider outsourcing if your workers are stretched too thin — doing too much and burning the candles at both ends. If workers are overworked, their efficiency, productivity, and profitability could tank. Employee morale can also decline if workers feel like the demands on them are unrealistic. It’s a scenario that could cause them to consider greener pastures elsewhere and head for the exits.
While the Great Resignation is now over, the pandemic-era trend saw workers resign and head elsewhere in record numbers. One reason they quit and took their talents somewhere else was dissatisfaction. Whether because of low pay, an unrealistic amount of work, a toxic workplace environment, or other things, many people decided that quitting their jobs and finding work elsewhere was the answer.
Instead of frustrating your employees to that extent, it makes sense to consider outsourcing specific business processes. Outsourcing can lighten the load on your already overworked staff.
- Lack of In-House Expertise
Another sign outsourcing is worth considering is if your company lacks in-house expertise to do certain things efficiently or at all. Instead of taking on the expense of hiring workers to tackle a business process for which there is currently no in-house expertise, it makes sense to outsource the business process to a service provider.
For instance, the learning curve for packing and pre-assembly might result in lower efficiency and productivity if done in-house. You might not have the time to get employees up to speed, and the time required to equip staff members with the knowledge they need to slash productivity. Rather than taking a hit to the corporate bottom line, it makes more sense to find a reputable third-party service provider.
- Inconsistent Service Quality
If your company’s quality control is spotty or inconsistent, that’s a good reason to explore outsourcing. When you find the right third-party partner, you can achieve the desired deliverable consistently.
An outsourcing company will implement a standardized process to ensure proper quality control. It’ll be built into the process.
- Limited Time for Core Business Activities
If your employees lack the time to focus on core competencies, that’s reason enough to explore hiring a service provider that can handle specific business processes. Going this route might be necessary if your business has too few hands on deck to handle everything in-house.
Rather than letting things fall between the cracks, it might be best to explore an outsourcing arrangement that benefits your business.
- Slow Business Growth
Yet another reason to consider outsourcing is if business growth is slowing. If growth is challenged due to resource limitations, outsourcing might offer flexibility and scalability that may kickstart growth.
- Rising Operational Costs
If in-house operations are getting too costly, that’s a good reason to look into the benefits of outsourcing. It might offer a better way to do things more cost-effectively.
Outsourcing is an option all businesses should consider. Getting ahead in a competitive marketplace is often about working smarter rather than harder — and outsourcing is one way to accomplish that feat.