Outsourcing as a Viable Solution to In-house Operations

It’s natural for most companies to assume that they can handle all facets of their operation in-house.  Being a control freak is a common personality trait of many business owners and outsourcing a particular operation involves losing some control.  However, sometimes you need to lose a little control to gain a little control.  For as paradoxical as that may seem, in many cases, it’s true.

The important thing to recognize as a business owner is what you and your company are really good at.  Concentrating on your core business should be your main focus.  Outsourcing other functions to people or companies that specialize in those particular operations could be both cost effective and more efficient than your staff doing them in-house.  Keep in mind that outsourcing means less staff, which translates to less expenses, less hassles, less liabilities, less insurance, less of a chance of your staff wanting to unionize, etc.

There are certain operational functions that are logical to outsource.  For example, warehousing, fulfillment, information technology, logistics, payroll, manufacturing, sales and marketing, legal, security, customer service, call center, billing, certain administrative functions, etc.  Functions that should not be outsourced are management and your core business operations.

I used to invest my own money in the stock market until I realized that unless I quit my job and focused all of my time on studying and researching the stock market, I was never going to be as good at it as the people who worked on it all day, every day.  No one can be good at everything.  It’s better to focus on what you’re good at and let other people focus on what they’re good at.

Managing employees is undoubtedly one of the most difficult aspects of running a business.  Many business owners can attest to this.  It’s also one of the most costly aspects.  Outsourcing helps to alleviate some of these costs and headaches.  Sure, it will cost money to hire outsourcing companies to assume these roles but, in many cases, since they are doing the same work for other companies, the cost can be more streamlined.

One of the best aspects of outsourcing is if the solution you went with is disappointing, you can easily switch services to another company without having to worry about the fallout and liabilities of firing staff.  Most of the time, you’ll be assigned a contact within that outsourcing company who is a manager or principle.  This makes your interactions easier than the “babysitting-like” process of dealing with employees.  The outsourcing company may also have the manpower your company doesn’t have which automatically puts you at an advantage.

The concept of outsourcing also opens up the possibility of having a particular function of your business done by employees in a different region or country where the salary expectations are lower than they are in your area.  This could be extremely advantageous in terms of lowering your operating expenses.  For most businesses, the biggest expense is payroll.  If you are having difficulty minimizing your expenses, outsourcing could be a viable solution.

For more information on outsourcing and other business management solutions, please contact Ashlar Consulting Corporation at 305-849-9399 or visit www.AshlarConsultingCorp.com.