When is the right time to outsource?

When is the right time to outsource?

2020-12-14 | Other

When is the right time to outsource? This is a valid question for growing, developed companies or even start-ups. The shortest and easiest way for a company to decide if they need an outsourcing partner is when they realize that although they want to grow, there is no time left to pursue that growth.

So how could companies buy some extra time and refocus on their growth?

When is the right time to outsource?

When costs are too high

Situations change and being lean or cutting expenses has become a priority for some companies. However, there is one constant thing: outsourcing allows companies to focus on what matters by reinvesting money where it will make the most impact. Maybe you need to invest in sales and marketing to increase revenue? Perhaps you made cuts already and are looking to fill the gaps or you might need to add new people, but hiring is not in the budget right now. Whatever the reason, if you need to cut costs, outsourcing is a good answer that helps you pay the bill.

When you need to focus on your core business

Adding people to your team to perform tasks not part of your core business can be overwhelming, time-consuming and pricy. Another aspect to consider: this might be limiting to your business development. In this case, outsourcing may be the smartest option. Many businesses outsource their back office, accounting, digital, customer services and more, so they can concentrate on what they do best.

Many outsourcing centers stand ready to help with tasks outside your core competencies. Regardless of whether you are great at accounting or customer care, is that what you sell? If the answer is no, using a third-party makes a lot of sense and can allow you to focus, create additional products and even, get more business. Small and big size organizations find that they simply do not have the opportunity to develop, when they have to consistently recruit back- and front-office colleagues, that could be outsourced.

When you grow too fast

Anyone who has led a startup or business in growth knows the excitement that comes when things really start rolling. Your production has picked up, your customers are increasing, or you see big revenue on the horizon. Growing fast brings a certain set of challenges and many organizations find that this is when they need help from a third-party.

This might be the right time to outsource. Starting a relationship with a BPO provider when you see the need to scale can help you organize what can be outsourced and what should be kept in-house. For outsourcing providers, scaling is very important for their core business. Need a team of one, 10 or 100, all with specialized skills? The best way to scale is to work with an outsourcer that can build large teams with incredible efficiency.

When customer experience is a key

Outsourcing can also assist your business with growing the quality of your customer support. For example, outsourcing companies can follow the orders and validate the items sent out. They can also be used to get feedback from your customers and implement it, where appropriate, in the business. Improved processes, reduced waiting times, customer friendly UIs, systems and technologies to support the customer would definitely be of help.

What should you outsource?


In general, there are two types of tasks that you could outsource:

Critical to your operations and not an important component of your strategy

Imagine that you produce organic food. If you deliver the product yourself, this might be an area that you can outsource. If you cannot ensure that your deliveries will be cost-effective and timely – outsourcing may help you complete this more efficiently.

Commodity tasks

Commodity tasks are also well suited to outsourcing. For instance, that could be printing, cleaning services, facility management etc. All these tasks could be done inhouse by hiring full-time employees or you can sign a contract with a facilities organization. The funds that you save on full-time staff can be redirected to other areas of your business.  

New trends to consider when choosing an outsourcing partner


New trend in the business is called “flexshoring”. Companies using flexshoring are flexible and have blended work-at-home teams, centralized teams and flexible/adjustable scheduling on a worldwide scale.   

One of the important advantages of the new reality is that you can find new capable colleagues all over the world. When it is not necessary to tie the agents to the office, you can hire from all countries and cities.

Flexshoring can help you to use unique skillsets found in different location. When combining groups from numerous regions. Оrganizations reduce the danger of failure, international political changes and catastrophic natural events.

The advantages are not restricted to the area of the specialists. Home office gives you a lot of possibilities. When you are at home, you do not waste time travelling and can take more attention to your family and your household.

Flexshoring is basically having the enterprising spirit and specialized capacity to act rapidly and cleverly. Digital transformation, culture and agility are things that numerous organizations appear to be discussing, however moderately few can make a move on.

Outsourcing gives you advantages but be cautious to the dangers as well


As you explore the cost/time analysis and think about redirecting activities, keep in mind that outsourcing requires you to clearly establish goals and a timeline with your contractors. While you may experience base cost savings, if you outsource to partner in another country, you must also focus on clear communication and control.

Expressing what is on your mind over calls, messages and mails is not the same as to talk face to face with your colleagues. Innovation has incredibly expanded the effectiveness of dealing with a task that you outsource. However, you must take in consideration that people in other countries have other culture and language as well.

Another point to consider is related to smaller companies: outsourcing any aspect of the tasks of a small company could be a big mistake. Their customers may lose the personal experience and support, both of which very important, especially for a starting company.

Outsourcing is an important decision with a lot of possibilities. When is the right time to outsource should be an individual decision for each company. Outsourcing can give you experience, more success and growth possibilities. If you agree with the points above, you have to look for a partner for your business. Look for an outsourcing center that can transform your processes the best way possible. The perfect call center will assist you in getting more deals and take a part of the weight from your employees. When you outsource, you can focus your time, attention and resources on your company's core competencies and spend your time setting new goals and finding ways to achieve them.

Here you can find the top 10 IT outsourcing service providers of the year 19/20

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