Do you have the right people to put your new or existing businesses, with bright ideas into action now that you’ve got it?
The answer differs from one industry to the next, from one company to the next, and from one person to the next. There may be times when outsourcing isn’t the greatest option, but there are also several examples of business owners realising they should have outsourced sooner and taken advantage of the time, money, and energy benefits.
Comparison of In-House and Outsourcing
Let’s look at the advantages and disadvantages of developing an in-house team versus outsourcing.
Advantages of In-House:
- Cultural compatibility. Hiring locally increases your chances of finding someone who fits your company’s culture exactly. They most likely reside in the same neighbourhood or close by, speak the same language as you, and so on. You’ll have more in common than if you hired someone from another country.
- Communication that is clear, rapid, and simple. The odds of misunderstanding and misinterpretation are reduced when everyone is in the same room at the same time. You may quickly approach team members, organise a meeting, and discuss or brainstorm when you need to make modifications to a project. It’s also simple to clarify any uncertain jobs or demonstrate methods.
- The company bears a high cost. The entire hiring process can be costly, which is especially true if you’re a new or existing businesses. Furthermore, recruiting a full-time staff locally necessitates a significant financial investment. You’ll need to get a bigger office space with higher monthly expenditures, and you’ll need to stock up on office supplies, in addition to salaries, bonuses, and other benefits.
- Skill Set Restrictions You’re missing out on a bigger talent pool if you limit your openings to local applicants. Outsourcing allows you to access into a larger pool of people who may have the talents you require and are better suited to the job.
- A high rate of employee turnover. A company’s high turnover rate might be costly. You’ll need to repeat the employment process, including reviewing candidates, conducting interviews, and providing training. These duties eat up your time, which may be better spent on sales calls and other important business responsibilities.
Advantages of Outsourcing
- Cost-effective. Outsourcing activities or projects is often less expensive than doing them in-house. When you hire offshore workers using Outsourced HR Solution, you save money on average salaries and overhead costs.
- Concentrate on your area of competence. “Do what you do well and outsource the rest,” urged Peter Drucker, the father of management. You can focus more on your expertise and generate better output — both in terms of quality and quantity – once you start outsourcing. It will also relieve you and your in-house team of some of their responsibilities, resulting in increased productivity for everyone.
- Having access to highly qualified employees. You have access to a large number of qualified, skilled experts with an Outsourced HR Solution. Some people specialise, while others can handle a wide range of tasks. We can locate someone to help you with whatever you require.
Cons of Outsourcing
- You have less control. This is dependent on who you’re delegating duties to. If you’re working with a marketing agency, for example, they’re in charge of some marketing decisions. You’ll have less influence over how the task is done and what is produced. It’s a different scenario if you’re outsourcing to a BPO provider. You have more control over your offshore personnel because they work directly for you.
- Lack of communication. In today’s highly digitised environment, there are a plethora of communication apps available, including Zoom, Skype, Viber, WhatsApp, and Facebook. Project management software such as Asana, Trello, Slack, and others are also available. All of these tools make outsourcing more convenient, but some activities may still necessitate face-to-face encounters. Outsourcing may not be the most efficient alternative for you if you prefer working with your team in the same room, with immediate feedback and regular modifications.
Not every business needs outsourcing, and not every business needs full-time in-house employees. It all relies on what you and your organisation now have and require. You can delegate graphic design or bookkeeping to an offshore company, while sales and printing are handled by an in-house team.
If you believe you can outsource some duties, go ahead and give it a shot. Take advantage of the substantial expense savings. Lower overhead expenses translate to larger profit margins, which is critical in any firm. Who knows, you might end up hiring a long-term employee who can help your new or existing businesses to flourish.
At Nova Team Solutions, we are dedicated to providing outstanding outsourcing solutions for high-growth companies in a number of areas, including debt collection, legal services, finance and accounting, healthcare, professional services, and many more.
We have full-time virtual assistants who are highly certified and skilled and could be an excellent fit for your organisation. Nova Team Solutions can help you grow your business by providing customised outsourcing services.
Allow yourself and your team to focus on high-value, high-skill jobs that impact your bottom line directly. Schedule a FREE discovery call to learn more about how we can match you with your ideal virtual assistant.