The question of whether to outsource or keep tasks in-house is something the vast majority of businesses face today. In most cases, businesses find that there are benefits that come from outsourcing certain jobs. However, it is all about knowing when it is best to outsource and when it is better to keep things in-house. This comes down to three C’s, which are cost, capacity, and competency. By considering these three key factors, you should be able to determine whether a specific task is something to outsource or keep in-house.
Cost – Let’s begin with cost. This is undoubtedly one of the key factors that need to be considered, however, it is something that is often miscalculated. This is because most business owners tend to simply look at the initial outlay when it comes to outsourcing, and assume that it is way too expensive. It is important to look at the costs over an extended period of time, for example, over the course of a year. This will give you a true reflection. The initial expense may be higher when it comes to outsourcing, but when you keep things in-house; you have on-going salaries and the related expenses to contend with on a monthly basis. Also, if you only need a service on a temporary basis, you are only going to pay for what you need when it comes outsourcing. For permanent tasks, the in-house approach could be much more cost efficient.
Competency – Competency is the ability to do something efficiently or successfully. If you don’t have this ability at your business, it would be better to look elsewhere. Accountancy and IT support often fall under this banner. Unless you operate an IT business, you are not going to have the experience required to support your own business. This could mean extensive downtime, which could lead to lost customers and be detrimental to your reputation. Managed IT services for businesses mean that you can have the peace of mind that your IT systems are supported efficiently and ticking along nicely in the background, enabling you to focus on the core of your business, i.e. what you do best. On the other hand, if you have the competency to handle a task in-house, there is no reason to shift the responsibility elsewhere.
Capacity – Do you have the resources required to carry out the task in question in-house? Or, are you going to stretch your business too far by attempting to handle this project? If you don’t have the capacity, you need to get help. This is especially important for small businesses and start-ups. Although we like to handle everything ourselves, it is simply not feasible when you consider the variety of tasks businesses need to handle that aren’t directly related to the core of their firm.
Hopefully, you now have a better understanding regarding the three C’s that should be considered when you are deciding whether to outsource a certain task or keep it in-house. By carefully assessing the cost, your competency, and your firm’s capacity, the decision should be a lot easier.
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