5 Common Tasks Businesses Outsource & The Pros/Cons of Each

Outsourcing is a common business practice.

16:00 08 December 2019

It's cheaper than hiring full-time staff, and it's beneficial in instances where companies only required periodic services. Each business will utilize outsourcing at a different capacity. Below are 5 areas companies outsource workers and the benefits and drawbacks of each.

Online Marketing

One of the most frequently outsourced services is online marketing. It's simply not worth paying workers to stay on staff full-time if they aren't doing work like your regular full-time staffers. Some primary benefits of outsourcing include the fact that outsourced workers are skilled/specialize in these areas. They are readily available and companies have more flexibility with pay and bidding, to find the most affordable specialists in the field.

Some drawbacks you'll face with outsourcing online marketing includes the fact that outsourced workers might not care about your business. It's one of many jobs they perform. Additionally, you run the risk of ruining your reputation if the job isn't done properly, and you have less control than you would if you hired full-time workers on staff.

 

IT Support

Information technology is a big area where companies choose to outsource. Maintaining full-time specialists is expensive. Furthermore, you don't always need technical specialists, especially in industries that aren't technically driven. Some benefits of hiring outsourced IT support workers include the fact that they're cheaper than maintaining full-time staff and you can improve your company's focus. It helps reduce operational costs and frees up internal resources and capital as well.

Some cons of hiring outsourced IT workers include the fact that you lose some control. It's a third-party company, so they'll do work in the manner they operate. Additionally, in some areas, it's tough to find IT workers (certain fields), and you might not always find local-based IT specialists.

 

Bookkeeping

Bookkeepers are another profession that is often outsourced. There are several benefits and drawbacks to outsourcing. Some benefits you'll realize when you hire outsourced bookkeepers include the fact that they're proactive and these individuals specialize in this area of work. You only have to pay for the work when you need it, and you can help reduce internal fraud (greed) that occurs in many companies by hiring third-party outsourced workers.

There are some cons worth highlighting as well including the fact that some outsourcing companies have a hidden fee/cost scheme and you'll lose certain controls as a business owner. In some cases the bookkeepers you hire aren't local, meaning they might not be familiar with all tax codes either.

 

Appointments/Scheduling/Receptionist

If your company schedules appointments regularly and needs a receptionist to manage customer inquiries, this is another area you can outsource. Several benefits include affordability and the fact that it's virtual (they can work from anywhere). Furthermore, remote staff can work 24/7 to serve your customers.

Some cons include the fact that you can't manage workers in office and you lose some control. Some virtual assistants work with multiple companies, so they might also work with your competitors.

Web Design

Designing a website is a task many businesses will outsource. The reason being is that designing a website is something companies only do once; and, if they redesign, it's only done every few years. Therefore, hiring full-time staff for a job that isn't done frequently, doesn't make much sense for many companies. Some benefits of outsourcing include affordability, and you pay as you go for services. You're hiring specialists in their field so the work's done right, and it's their sole function, so you can rely on the quality of services offered.

Some drawbacks to hiring outsourced companies include the fact that not all offer money-back guarantees and since they aren't employees, they aren't really vested in the outcome. It's also less efficient as these workers are offsite, so you can't always reach them immediately if changes have to be made quickly.

As you can see, as a business owner, there are many tasks you can outsource, rather than keep in-house. These are a few common areas to consider hiring third-party companies to perform, rather than maintain a full-time team for these duties.