Is it time to outsource some of your business functions?

Outsourcing has been around for many years. It’s a tried and tested business strategy used by all kinds of companies. From small start-ups to large global companies, outsourcing can support a business with a variety of functions. But, even for those businesses that have used outsourcing services several times before, it can be a worrying time. You’re bound to have concerns about reliability, quality of products, confidentiality etc. But outsourcing can work with patience, trust, and good communication.

Historically outsourcing was commonly used to save on costs and reduce headcount but nowadays there are many other reasons of why using third party companies can benefit your business.shutterstock_507045763


One of the major reasons outsourcing can work well for a company is that it ensures that the management team/business owner is doing what they should be doing instead of being dragged into the every day running of the company. They should be focusing on what they are good at without distraction. Managers should be free to work on the business and not in it, if they are not given the time to do this then the business will not be developed and driven forward.


Cashflow problems, especially for start up businesses and small enterprises, can cause issues for a company. Cashflow issues can arise for a variety of different reasons but outsourcing can help. Employing a member of staff means that you will then have a fixed cost. Outsourcing relieves this commitment and allows you to pay for services on a pay as you need basis, freeing up cash flow for other areas or commitments within your business.


Employing a new member of the team can cost your company money such as recruitment and training. Once you have your new hire in place you will invariably have to spend time on training and even buy new equipment and software. However, using a specialist company that specialises in the services you need means you are paying for their expertise and professional knowledge. For instance, if you chose to use a Data Centre for your data storage they will ensure your data is kept safe and secure rather than you having to ensure the data on your premises is protected from fire, theft etc.


Employing staff is a risky business. Not only do they create a fixed cost but, if they decide to leave, it can leave a huge void in your business. Losing a member of staff at any time can put pressure on the rest of the team and, if they decide to leave at one of your busiest periods, you may find you subsequently make poor business decisions as a knee jerk reaction to tie you over. Outsourcing can help create consistency throughout your business. As your relationship with your outsource company grows, they will gain a better understanding of your company’s expectations, needs and requirements.

For more information on outsourcing and if it’s right for your company, visit ‘The Balance’ website:

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