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3 Considerations Before Outsourcing

Outsourcing is one of the most popular approaches to boosting a business’s production and sales. But before you start diversifying your efforts, remember that outsourcing has both pros and cons that can impact any business on an individual level. Many companies decide to outsource so they can save money or time. Though these are good reasons to move forward, it’s important to know exactly how outsourcing could help or hinder your business. I recommend consulting with a coach or expert to get the bottom line about how it could help you. In the meantime, here are a few things to consider.

Will Your Communication Be Good?

Outsourcing is partly to do with working with an onshore team or an offshore team. If you have specific needs and you are working with a company like TSMC based in Taiwan you’ve got to think about whether they are able to handle your queries. We have to remember there can be considerable hindrances to communication, either due to time differences or cultural and language barriers. The vendors should be able to reply without a lengthy wait and with verbal and written clarity. 

How Much Money Will You Save By Outsourcing?

We outsource to improve our bottom line by reducing our operating costs. But when we spend more money upfront, will we be able to save any money over time? One way to truly check is to implement a financial forecast so you can have the figures in front of you. You’ve also got to think about the pricing of the vendors. Partly, it is to do with shopping around for a good deal, but it’s also about making sure that you get everything you need from a specific vendor. Even though you’ll save money, will you get everything that you need? 

How Will It Affect Company Morale?

Outsourcing certain components to your business can be tricky, especially if you have loyal employees. They could view this change as a threat to their jobs.  Company morale could very well take a nosedive if you’re not careful. I recommend that you have a plan (on paper) to discuss with your staff, so they understand what outsourcing is a positive move.

If you’re doing it to expand production or save money during an awkward transition time, they will likely understand. After all, there are only so many hours and dollars at any given time. If you’re not ready to hire more staff or pay overtime, outsourcing is a way to expand capital while navigating growing pains. Focusing on the culture and maintaining morale through other methods can prove beneficial during any tough time.

There are numerous factors that impact a business. Outsourcing could be one of the best things you do for your business or it could be a negative step. If you can apply it naturally into your systems and culture, it will go smoother for everyone. 


About Madeline

Madeline is a mid-west mom of three who spends most of her time refilling ice trays and changing toilet paper...just kidding. She is a high school guidance counselor, all around funny gal, and a writer. Her first book, Be Happy Already!", is in the works.

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