How to Identify if a Business Task or Role Can Be Outsourced
Doing more with less is a concept not lost on most small- to medium-sized business owners. Stepping in to fulfill multiple roles at the same time is a responsibility many of us have had to do to keep up with everyday management and administrative tasks essential to an SMB operation.
There comes a certain time and place, however, when this is no longer sustainable. Rather than hiring new in-house staff to take on these important job duties, a cost-wise solution many businesses consider is outsourcing. Outsourcing tasks like HR can be a huge time and money saver. In return, it also frees up your capacity to focus on strategically growing your business.
Where to Start When Deciding Which Tasks to Outsource
When identifying whether a business task or role can be outsourced, it’s best to take a systematic approach. First, conduct a task analysis. Evaluate the specific tasks or roles you are considering for outsourcing. Break them down so you understand the scope and complexity of each task.
Then, consider these questions as you analyze various opportunities.
- Are you an expert at the task? If the role or task in question is not one of your or a team member’s core competencies, it’s likely a good candidate for outsourcing.
- What are the costs and benefits of outsourcing? Estimate the total cost of performing the task or role in-house, considering salaries, benefits, overhead, equipment and other expenses. Then, compare this cost to the potential cost of outsourcing.
- What value does outsourcing add in driving your company’s growth? Similarly, you want to try to quantify the impact outsourcing will have on your SMB’s success. How will it enable you to remain agile and scale your business?
- Are there any regulatory or compliance requirements inherent to the task or role? Consider whether the task involves complex regulatory or compliance requirements. Outsourcing providers often specialize in handling these complexities, which can therefore reduce your risk.
Outsourcing parts of your business can be an effective way to gain efficiencies in your SMB while also reducing costs. Many employers find it to be a win-win. To assess whether it’s right for you, give us a call at The OIS Group. We’ll conduct a complimentary full review to help you identify areas of opportunity.