Outsourcing involves delegating business tasks to a third party. When done correctly, it can save your company a lot of time and money. However, when done incorrectly, it could end up having the opposite effect. Here are just several mistakes to avoid when outsourcing.
Outsourcing too many tasks
Nowadays, you can outsource practically any task from answering the phone to arranging business travel to even dismissing employees. However, just because you can outsource anything, doesn’t mean you should outsource everything. Every company/individual you outsource will expect payment and you could end up forking out huge amounts of money for tasks that you could have done yourself for free. You may not save much time either as you’ll be constantly checking in on all the people you’ve outsourced (the only exception may be if you’re outsourcing supply chain management).
Outsourcing your strengths
You should only outsource tasks that you’re not good at or don’t enjoy. There’s no benefit to outsourcing tasks that you’re good at or that you love. For instance, if you’ve had success generating buzz on social media and find it fun, don’t outsource a social media marketing company to take over. Focus on outsourcing your weaknesses and honing your strengths.
Going general, not specialist
There are lots of companies out there to choose from when outsourcing. Some of these companies may be better catered to your niche. For instance, if you’re a dental company looking to outsource IT support, don’t just outsource a general IT consultancy firm when you can outsource a specialist dental IT support company such as Pact-One Solutions. There may also be specific tasks that you want to outsource in certain instances that could be better handled by a specialist. For instance, why outsource a general marketing company to just handle SEO when you can hire a specialist SEO company.
Focusing on price, not reputation
When deciding which company to outsource, don’t always choose the cheapest company to outsource. This may seem like the best move to save money, but often the cheapest suppliers will deliver the lowest quality. In some cases, you could end up wasting time and money on a poorly-done task that you could have executed better yourself. While cost is an important factor to research into, make sure that you’re also researching the reputation of the companies that you’re outsourcing. This could include reading reviews, looking for mentions of awards and possibly checking out their social media channels to see how big a following they have.
Communicating too little/too much
It’s important that you keep communication with the companies/individuals that you outsource. You want to be certain that they’re doing their job and that they haven’t forgotten about you. That said, you don’t want to be constantly badgering them – too much communication will not just take up their time but also yours, and the whole point of outsourcing is to save time. You’re much better off hiring an in-house employee if you want to constantly keep in communication (and even then, you don’t want to resort to micromanaging).