Are you looking for new ways to lean out your business costs? Have you thought about outsourcing some of your current work functions?
Below we have listed some of the pros and cons of insourcing and outsourcing to help you make the best decision for your business.
What is Insourcing?
Insourcing is assigning a project to a person or department which the company instead of hiring an outside person or company to do the work.
Pros of Insourcing
Work closely with team members
Control the quality of work
Enhanced synergy between departments
Shows investment in the workforce; good for morale
Cons of Insourcing
Requires more money and resources than outsourcing
Rebuilding a team can be expensive and time-consuming
What is outsourcing?
Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company’s own employees and staff.
Pros of Outsourcing
Access to talent around the globe
Focus on your core business
Projects can be performed at a discount
Adds excellent expertise without a long-term commitment
Cons of Insourcing
Lack of control over the quality of work
Can get expensive if you need to fix work to meet standards
Disconnect between departments
Missing relationships with team members
Work is completed by others with no knowledge of your business culture
Which is best for your business?
Outsourcing is a definite winner when businesses are focusing on cutting costs while having top talent on your payroll. It was once considered a luxury that only bigger companies could afford. Today, businesses of all sizes use outsourcing to let go of managing nonessential roles; saving a lot of money in the process.
The digital age makes finding outsourcing less of a nuisance than it once was before. It is still very important to remember to asses all potential vendors before signing any contracts. Taking the time to do a little more research on potential outsourcing partners can lead to long term gains and help you build a long-term competitive advantage for your business regardless of size.
Insourcing is a great option if you want the ability to have more control of the said process. Insourcing allows you to train and develop your staff the way you want which will give your employees a great sense of ownership.
When your business is stuck on the which way to go, it is important to asses all the options available to you and pick the best one for your business objective. While insourcing can allow you to have more control and customize, outsourcing can be more scalable and cost-effective.