Is Outsourcing Or Contracting Out Appropriate For My Small Business?

Outsourcing is an emotive topic that is often portrayedperhaps currently carried out by your existing
in a negative light by the media. It is also something thatadministrative staff but could just as easily be carried
has traditionally been seen as the preserve of bigout remotely by someone working evenings or even
multi-national corporations, and small business has beenworking in a different country.
slow to take up this business trend.Are there specific functions within your organisation
However, outsourcing is something that we all dothat don't require full time cover?
regularly, most of the time without realising it. ForPerhaps you are a small company that employs one
example, when your radiator starts leaking, more oftensecretary. The secretary's functions still need to be
than not the plumber will be called out to come and fixcarried out even when they are on leave, and
it. This is outsourcing at it's most basic level: thetherefore you could consider hiring a freelance virtual
necessary skills don't exist within the organisation (yourassistant to act as an answering service and
home) and so a freelance professional (the plumber) isappointment planner.
hired to work on the project (fixing your radiator). It isOr, you might need somebody to run your on-line
this basic principle that should be used to determinemarketing campaign, a task that only requires a
whether or not it makes sense for your business tomaximum of one or two days work per month in total.
outsource projects.It makes little sense to try and hire someone on a
If you can answer 'Yes' to any of these questions,part-time basis for this (and no sense to pay a full-time
then chances are you are in a position to gain bysalary for so little work), and so outsourcing your
outsourcing.on-line marketing campaign to a freelance professional
Are there particular projects that your business doesspecialising in this area is the appropriate decision to
not have the skills to complete?make.
During the course of the business year, there areHopefully you now have some ideas of projects that
often particular activities that need to be carried out,you might look to contract out. The next step is
where the necessary skills pool does not exist withindeciding who to give the work to.
your organisation. These are the most obviousOne of the oldest, and trusted, routes for finding a
projects to be contracted out, because you can retainprofessional is to use word of mouth. In other words,
the services of an expert but only for the time it takesspeak with someone you know and trust who has
for the project to be completed.been in a similar position before and find out who they
For example, it may be that you run a guest houseused to get the job done. This way you are using a
and need to have your website redesigned. It is unlikelytried and trusted resource to complete your project.
that you will have the necessary skills to carry this outHowever, if you don't know anybody who has had a
within the company, and therefore this is a primewebsite designed (for example), or the named web
example of a project that can be outsourced to adesigner is busy, or you feel that it might be possible to
freelancer.get the same standard of work at a lower cost from
Could you be completing your existing projects moresomewhere else, a different approach is required.
cost-effectively?On-line freelance marketplaces are a great place to
Perhaps you are the Managing Director of afind the skilled professional that you need for your
medium-sized company, yet you put together the copyproject. These will often allow freelancers to compete
for the full page advertisement you run in the weeklywith each other for your project, thereby giving you a
newspaper each week. It is highly likely that your timerange of cost options to choose from, as well as
is worth more than the cost of hiring a freelancehaving some form of review or rating system so that
copy-writer to carry out this task for you, thus freeingyou can choose your service provider with confidence.
you up to focus on your core business (or golf!). Again,In this day and age, more and more small and medium
another great candidate for outsourcing.businesses are using this medium to identify and hire
Another example might be data-entry, which isskilled professionals to work on their projects.