One of the strategies you might use when developing and growing your business it to outsource some of your non-core operations. Processes such as cleaning, customer service, payroll, marketing and IT are commonly outsourced to external organizations. Before you make the decision to outsource, consider all possible advantages and disadvantages for your business.

Advantages might include:

  • Allows you to focus on your core activities
  • Costs are easier to budget because they are fixed in contractual agreements
  • Cost-effective
  • Streamlined use of resources
  • Increased staffing flexibility
  • Increased quality of service through specialisation
  • Shared risks and rewards
  • Accommodates peaks and valleys in demand

Possible disadvantages include:

  • Loss of managerial control
  • Hidden expenditure, including legal costs
  • Threat to security and confidentiality
  • Decreased employee security and satisfaction
  • Quality problems
  • Tied to a contractual agreement