SHOULD SOME FUNCTIONS BE OUTSOURCED TO YOUR SME BUSINESS?
If your SME is considering outsourcing, chances are you’ll be overwhelmed, stuck, or unable to find the right growth. Outsourcing can create efficiency, save costs and free up time, but you have to be ready for the commitment and the business you have to do it right. So in which case should your SME business outsource? Let’s find out in this article by Tech Town
Factors to consider when outsourcing
There are a few key indexes that will help you decide whether to outsource or not. However, the most important thing is honesty. Be honest with yourself about your business and its goals when making decisions. Here are the factors:
1. The business is growing, and you can’t afford the job
Although your business may be growing in a direction that needs extra support, you probably haven’t. willing to hire a full-time employee to handle a particular function. Instead of finding, hiring, and hiring a full-time employee, outsourcing can be a way to support growth.
Outsourcing is a great solution, which avoids the expense of a full-time employee and the time it takes to work. If you hire a freelancer, contractor or company, chances are that individual or team is highly skilled and can start working right away.
2. You need to scale seasonally
If you run a business with predictable ups and downs, the extra workload during busy times can be more than your team can afford. Therefore, finding a software outsourcing partner can help you scale up or down based on activity, allowing you to maintain productivity and avoid hiring and firing issues.
3. You lack expertise
Know the strengths, challenges and limitations of your business. Invest in a professional, they will help tackle the job much more effectively than you can do independently. You’ll save huge amounts of time instead of trying to “find” and allocate them to your specialized tasks.
4. You don’t have enough time
As mentioned, SME business owners often spend all their time getting things done, and it’s not always possible for them to complete the high-priority tasks that produce revenue or generate growth. So if you observe opportunities that are being missed, this is the optimal time to outsource some business functionality and refocus.
In which case your business should NOT outsource?
While outsourcing can fully benefit SMEs and provide much-needed support, sometimes outsourcing may not be the best course of action. These are the following cases.
1. Tight budget
If your business really can’t afford to outsource, then this is not the right choice. Some functions cost more and some cost less, but overall, it’s an investment. If you think outsourcing is the best option, but you can’t justify the cost with an early profit, keep it on the waiting list and re-learn when the time is right.
2. Lack of internal resources
While many outsourcing options are almost turnkey, there will still be some internal management requirements. If your business doesn’t have enough internal resources to oversee the outsourced functionality or provide the necessary direction, your efforts may not be successful.
3. A consultant would be a better choice
One question to ask is can you get a consultant instead of outsourcing? In other words, is this a problem that can be solved by hiring a one-time worker? While still technically considered outsourcing, it is a more temporary solution and may only require a consultant for a short time to resolve the issue, to help you move forward. This is a pretty reasonable choice.
4. You are concerned about security
If your business handles a lot of highly sensitive information, carefully grant access to this information. If there are specific security-related or other legal issues, you may want to avoid outsourcing and hire an in-house person instead. By hiring an in-house employee, you can maintain more control and transparency.
Outsourcing creates efficiency
In general, software outsourcing allows you to get more done and trust essential tasks and processes to professionals without developing a full-time team in-house. This helps control costs, increases efficiency, and frees up resources so you and your team can focus on what matters.
Tech Town hopes the information brought will be useful for your business.
Tech Town is a technology company from Vietnam, with representative offices in the United States, Japan, Canada, and the Netherlands,… As a reputable technology partner, specializing in implementing software development projects Customization, website design, and application development with the application of the most modern technology techniques such as AI, Machine Learning, Blockchain… For more than 5 years of operation, Tech Town has become a reputable IT outsourcing partner. trusted by SMEs and enterprises in the fields of EdTech, FinTech, and E-commerce,… from many countries around the world such as the US, Canada, the Netherlands, Japan, the UK, and other developed countries.
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