What exactly is ‘Outsourcing’? and why should businesses even consider it?
Outsourcing is the practice of having certain job functions done outside a company instead of having an in-house department or employee handle them; functions can be outsourced to either a company or an individual.
Businesses outsource for a number of reasons including
Reducing and controlling operating costs
Improving company focus
Gaining access to world-class capabilities
Freeing internal resources for other purposes
Streamlining or increasing efficiency for time-consuming functions
Sharing risks with a partner company
However, it is important that you analyze your business and make a business case for outsourcing any function of your business. You do not just outsource for the sake of outsourcing – The goal should be to get better outcomes for the business and customers while using the resources available to you.
Before you outsource to any individual of company, you have to ensure that you have carried out an appropriate background check on them, have your deliverables well detailed out and a contract that binds them to it.
In this episode, we try to find out if outsourcing should be considered by small businesses.
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