For leaders, it can be a struggle to know when to outsource part of your business. This can apply to a particular skill or even an entire department. Whatever it is, you believe you need outside help to get something done.
But outside help does come at an additional cost. Should you try to keep doing it yourself or should you let someone else tackle it? It can be a challenging decision, especially for new tasks. Here are some tips for when to outsource:
What’s the Learning Ceiling?
Is the thing you need your team to learn something employees can master? It’s a skill you learn once and then you know it forever. Or is it something that will require ongoing training?
The higher level of training needed, may make outsourcing a better option, especially if the task is outside or on the edges of your core business. By outsourcing, you decide to let your provider sweat the details of any updates.
When to Outsource: Time
Time is not an unlimited resource and you should have a good understanding of how much of it is needed to accomplish the task.
For instance, does it make sense to have several people folding letters and stuffing envelopes for a big mailing? Or does it make more sense to pay someone to do the work?
With outsourcing, sometimes it’s good to look at those tasks that people don’t like or are more like busywork. Those may be key items to get off their plates.
Opportunity Cost
Related to the time consideration is the opportunity cost. Simply put, if people didn’t have to do an outsourced task, could their time be better spent with other activities?
You can easily fill your day with time-consuming basic tasks that end up doing little to help the bottom line. While no one likes adding another item to their expenses, outsourcing may represent a smart investment.
Is the Knowledge Transferable?
If you choose to keep a task in-house, can other people learn it over time? Even in the most beloved organizations, turnover does happen. You don’t want to lose valuable training when someone leaves the business.
If the task is hard to learn or the only person who knows how to do it isn’t the best at teaching, then you may want to outsource the training. Another consideration is to make sure that you’re hiring people who understand all the things you need them to do.
If all of these scenarios are overwhelming you, then outsourcing the task may be a smart move.
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