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In-House vs Outsourcing: When Should You Outsource?

Peak Outsourcing
December 5, 2023
In-House vs Outsourcing: When Should You Outsource?

In-House vs Outsourcing When Should You Outsource

Outsourcing specific tasks can help you grow your business and focus on what you do best. From your accounting and employee payroll to specific phases of a large project, businesses of all sizes can benefit from outsourcing certain tasks. What kind of outsourcing is right for your business? How can outsourcing companies help you? Here are some pros and cons of in-house vs. outsourcing to help you best determine how to leverage the power of outsourcing to improve your core business.

Defining In-House and Outsourcing

In-house actions are those that the company conducts using its own employees to complete a business function. Outsourcing, on the other hand, is when a specific business activity is assigned to a team of outside professionals who are not company employees.

For example, a small business owner may outsource its payroll and accounting services to a professional accountant or CPA instead of hiring an in-house accountant. The company may not have enough work to justify hiring a full-time employee just to do the accounting and payroll, but the business owner may not have time to do it themselves. Another example may be a software company that outsources a particular phase of a project or outsources its appointment setting for sales teams.

Advantages and Disadvantages of In-House Staff

When you work with your own in-house team, you know that you have workers that you hand-picked for compatibility with your company culture. Companies can vet potential employees during the hiring process and have more control over who will be interacting with their clients. Also, because these employees are usually full-time, they have a deeper insight into the company’s overall operations, which a worker hired only for a short-term task may not.

As a business owner or manager, you have complete control over the in-house team, so you can supervise any project from start to finish. Although there are benefits to having an in-house team, there are several disadvantages, too.

High labor costs are a primary reason why companies choose to outsource certain tasks. When you hire your own staff, you’re covering more than just salary. There are also taxes and other payroll expenses, including any non-salary benefits you provide employees. In addition, you’ll also have to cover all the training and onboarding expenses yourself. The up-front cost of hiring and training just one new person, let alone a whole development team, could mean your business cannot expand as much as you’d like.

If you have a tight deadline or are bidding against a company that already has a project management team in place, then the time it takes you to get your own in-house team ready could prohibit you from being a viable alternative. Or, what if a pivotal player on your in-house team quits? You could be left with no way to complete your project on time.

Advantages and Disadvantages of an Outsourced Team

Business owners may prefer outsourcing for certain software development projects. It could be more cost-effective to outsource certain time-consuming tasks so that your own in-house developers can concentrate on pushing through the next phase of the project. Or perhaps you need someone with specialized knowledge for just one small part of a project. Using an outsourcing company may be more cost-effective than recruiting, hiring, training, and retaining someone for a one-time need.

Your business may also be able to offer a wider variety of services if you outsource. Providing niche services or products can give you a competitive advantage, which you may only be able to do if you outsource.

However, there are some drawbacks to outsourcing. You have less control over the process, meaning you have trouble with quality standards or communication. This means you’ll have to establish clear standards at the outset and have regular check-ins to ensure that the outsourced work product meets your company standards.

Finally, you should be careful if your outsourced team has access to certain sensitive or proprietary information. This could be anything from customer information to chemical formulas. Before outsourcing, ensure you have protocols for a security breach and strict NDAs or confidentiality agreements.

When to Choose In-House vs. Outsourced Teams

a group of company owners speaking to outsourced virtual assistants via a laptop video callCertain business demands may be better suited for in-house teams to complete, while other tasks are more effective when outsourced. For example, outsourcing specialized professional tasks may be a good option for a small business or startup that doesn’t have the resources for an in-house team yet. The small business may be able to gather bids from different providers so they can choose one that best aligns with their needs and values. Plus, the outsourcing company handles much of the risk and other concerns, protecting your fledgling enterprise.

However, if your plans include having the outsourced task performed on a regular basis, or if it’s going to be a core part of your client services, then it may be better to develop your own in-house team so you know that you have the resources ready to deliver at all times.

Are You Ready to Get Started?

Whether you need a little or a lot, PEAK Outsourcing offers comprehensive, specialized professional services for a variety of business functions. We have trained staff ready to get started and the capability to scale our services as your needs change. Let us help you save money and grow your business.

Our Professional Outsourcing Services

At PEAK Outsourcing, we offer high-quality business solutions BPO services, including:

We can handle as many or as few of your business needs as you require. Our professionals are highly trained and ready to get to work immediately. We can scale our services if your needs fluctuate from month to month. We also have strict oversight and supervision procedures in place to ensure that each business task meets your own high standards. Call 1-866-796-0810 today or contact us online for a consultation about how we can help.

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