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Being Profitable Today: Outsourcing Advantages and Disadvantages

outsourcing_advantages_and_disadvantages

outsourcing_advantages_and_disadvantages

Working with an outsourcing agency results in 10x more productivity 

How many times do you wish there were 10 of you in a given day? Between morning routines, meetings, returning missed phone calls, performance appraisals, balancing your books, scheduling payroll, and looking over your new brochure – when will you ever get to your real job? Identify your over-taxed areas of operations and administration in running your business. Do you spend too much time running the books? Writing HR policies? Scheduling payroll? Writing marketing material for your website or brochure?

Most likely you have someone to help you with some of these tasks. In reality, we all want to grow and prosper, however, some businesses over time can become more complex. You may have a product or service that is better suited for one customer and you find that you need to diversify your revenue portfolio by offering a diverse offering. Maybe you used one accounting method that now has grown more complex as you started adding office equipment or expanding your building inventory. Marketing methodologies keep changing with technology and you might feel overwhelmed having to “keep up”.

The good thing is that you have resources and they come in all shapes and sizes. What remains important is to decide what is right for your business and how it will scale for future growth. Do you want to double your revenue potential? How many of you will it take to do so? Will you be increasing orders? Have you seen your receivables scale out of control? 

Identifying a business that should hire their own staff

Depending on your type of business and management style, you might prefer having talented and skilled professionals in-house for a variety of reasons. For example, your corporate culture might be tight knit or you might have confidentiality concerns that are better managed under one umbrella. Where you might argue that in-house salaries and benefits are comparatively more expensive than outsourcing, the benefits in this scenario might very well out-weigh the costs.

Businesses that will benefit from working with an outsourcing agency

According to an article by Inc Magazine, “the outsourced HR industry has grown to an estimated $165 billion annually.” Businesses are looking for help on specialized tasks in areas such as accounting, hr, payroll, IT, marketing, and more.  

“Brent Taylor, Beyond Meat’s VP of Corporate Development believes the firm’s ability to focus on its core competencies has enabled it to grow rapidly without getting bogged down in such necessary time sucks as payroll, benefits and vacation time. Translation: it outsourced its human resources department, and the move paid off big.”

4 Reasons Businesses Are More Profitable By Outsourcing Their Work

1. Time to focus on core competencies

Day to day tasks are not always signs that you are productive. Schedule too many tasks and you will find your time is saturated. When more important core competency issues arise such as the time you need to deal with a project issue, plan a scaling project, or focus on future budgetary issues, your quality of work will suffer and so will the direction of your business.

2. Project pricing benefits

When you figure the cost in training a new person, along with their salary and benefits, the position you are trying to fill may not bring the value to your business you thought it would. Outsourcing that workload is generally a cheaper alternative because the overall price per hour on a project, whether it be a 6 month or 12 month project, is done quicker and with more quality than when you bring in new hires to the job.

3. Management control and quality

Essentially, working with an outsourcing group establishes a different working relationship. You are really no longer the “managing boss” but rather the client. You can establish a quality criteria, in many cases, more stringent than you would ask that of your own in-house hire. What you end up obtaining is a higher set of standards based on the working relationship.

4. Greater expertise and skill set

Outsourcing agencies attract a different set of professionals than traditional staffing agencies because they can require more expertise and experience based on the variety of clients they work with. Your value with an outsourcing agency is doubled because of the diversity of work and clients. Professionals in these agencies sharpen their skill and knowledge of diverse workloads transferring their value to the clients workload.


Although adding more time to your day might be tempting, there comes a time in every business when it’s necessary to introduce more hands and minds to the mix. Take into consideration outsourcing advantages and disadvantages and whether your business could benefit from hiring or outsourcing your workload. Next, take a moment to find an outsourcing group to interview first – or alongside your interview process. This may be more time consuming but you might consider it more beneficial to see your hiring process unfold alongside your interview process of an agency. For further reading, feel free to download an example guide of Weighing the Costs of HR Outsourcing,  where we discuss the benefits to outsourcing HR tasks for your business.

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