As a business owner, you want to hire the right person for the job, but you also have a limited budget and fewer facilities to offer. You have heard the term outsourcing but there are still doubts in your mind. You are sitting there thinking how can I decide what to do? Well, keep reading to find your way out of this dilemma!

The contents that I’ll cover today include:

• What is outsourcing?
• Why Outsourcing is growing?
• Outsourcing vs In- house hiring
• What to consider before outsourcing
• How to choose which team to outsource
• What roles you should not outsource
• Summary

1. What is outsourcing?

Outsourcing can be defined as hiring an outside team or an individual to carry out a set of duties that are usually performed by some in-house members. Consider you are a small restaurant owner and you are looking to develop a website for your business. Now you can either go through the hectic process of recruitment and setting in-person interviews, or you can outsource the service and get it developed without going through the process of hiring, giving signing bonuses, and offering other perks and benefits. A win-win situation for you!

2. Why Outsourcing is growing?

The outsourcing model has been rapidly growing especially in the post-pandemic era. The reason is that the outsourcing model is cost-effective as compared to in-house hiring and offers a wider range of talent pool of people for work. Outsourcing has especially grown in the IT industry. IT solutions and development services are most common and easily outsourced and are a better choice than hiring. Let’s convince you with some stats!

Stats about the growth of IT outsourcing

These are the overall stats for the IT industry. But let’s focus on why it is going to benefit you by sharing examples of how other businesses are taking advantage by outsourcing

Stats showing how outsourcing help businesses

3. Outsourcing vs in-house

Outsourcing and in-house hiring both have their pros and cons. It is up to you and the requirements of the project that determines which hiring you should do. In order for you to understand the difference carefully, I have elaborated with some images below

4. What to consider before outsourcing

Outsourcing is a good option, especially in terms of IT services, but there are a few factors you need to know before considering this option

Time requirement: A big factor you need to know before deciding to outsource a service is to know how much time you have for a project. If you want a speedy delivery with less spending then outsourcing is the way to go. But if you are keener about the details and quality of the work and have a relaxed deadline, then in-house might be a better option

Required skills: Second thing that you should know is what kind of skills are required to finish the project. For example, if you need to develop an app, then you need a team of designers, backend, and frontend developers. Now you should match these skills with your in-house employees. If you do not have anyone with these skills then you should look for outsourcing options because outsourcing would provide you with a talent pool from all around the world

Budget: If you are short on budget or a project then outsourcing may be in your best interest. Because you have access to thousands of freelancers online, you may find a majority of people who are willing to work within your budget. This option may not be available in the in-house hiring

5. How to choose which team to outsource

While deciding what kind of team you want to outsource. Online platforms allow you to reach out to many talented people, but at the same time, they open you to fraud and getting played. But there is a way by which you can avoid this, follow the below rules

• Believe in referrals: You may have someone in your social circle who has outsourced the same service you are looking to outsource. They can refer you to a good team or connect you with the right individuals
• Avoid people with too low a price: While some credible people may also be offering low rates to get clients and orders, it is likely that people who are offering too little a price are inexperienced and will deliver a poor job. It is also possible that they might just take your money and not deliver anything. Never pay the total payment in advance. Instead, divide your task into milestones and pay according to each milestone
• Check their reviews: A good way to hire someone is to check how others have rated their work. Check the rating on multiple platforms such as their website, Trust pilot, social media, etc.
• You can outsource companies too: It’s not only the freelancers that you can hire but also credible companies that are providing outsourcing services. If you are looking for a balance of pricing, timing, and quality, then outsourcing a company would be the best choice for you. Sometimes the companies demand up-front payment which is okay to pay since the chances of a company doing fraud are very low.
• Give every country a chance: Despite what you hear, there are many under-developing companies like Pakistan, the Philippines, Ukraine, India, and Mexico that are providing excellent outsourcing services. They have professional and skilled freelancers to offer at an affordable price that is worth considering. Avoid prejudice and focus on the best service you are getting regardless of where you are getting it from!

6. What roles you should never outsource

You may be convinced that outsourcing is a great option for many of your services, but there are some roles that should never be outsourced. This includes the roles of managers and anyone lying in the upper hierarchy of the organization. The top management of the company decides the core values, policies, and goals an organization has to achieve. These roles are part of the creation of an organization and should not be outsourced. Other than this, any service you want to obtain for the long term should be carried out by in-house employees rather than an outsourcing team.

Summary

Outsourcing is rapidly growing because of its several advantages and because the promotion of work from home has vastly increased since the post-pandemic era. Therefore the acceptance of the outsourcing model has increased. But whether or not this model is suitable for you or not depends on the requirement of your project. So choose wisely!

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