Outsourcing can be a valuable tool, especially for smaller businesses with limited budgets. The pool of freelance workers is growing dramatically with better access to technology and the millennial generation embracing freelance work. According to Betterment’s 2018 “Gig Economy and the Future of Retirement” report, one in three U.S. workers currently freelance.
How do you know if it’s time to outsource for your business? Ask yourself some of these questions, propose by Entrepreneur in Here’s How to Know When You Should Outsource. If you can answer yes to the following questions, it could be time for your business to outsource.
Is it time for your company to outsource?
- Will it propel my business forward?
Beyond saving money on hiring a full-time employee, outsourcing should help your business provide something it currently isn’t equipped to handle. Outsourcing is particularly useful if your business lacks technical expertise or a highly specialized skill set. Rather than trying to do everything in-house — and maybe not doing everything that well — outsourcing to an expert can be a quicker way to progress.
- Will it boost my team’s capabilities?
What areas are your team lacking? It could be outsourcing to a freelance could round out your team’s capabilities. Particularly, outsourcing can be effective for IT, marketing, and accounting teams, but it could be a good fit for almost any team.
Just like the previous question, rounding out a team with the expertise they may not have can propel your business forward. It’s also a lower risk way to try out a person without having to bring them fully onboard. Additionally, maybe you only need that freelancer’s expertise for a limited amount of time. Freelancers are used to working on limited projects, but a full-time employee will expect longer-term work.
- Will it make my team more efficient?
In addition to finding skills or capabilities your company doesn’t have, outsourcing can also streamline some of your core functions. Perhaps outsourcing shipping, logistics, accounting, or other core function can free up your internal team to be more efficient. Outsourcing is also an excellent way for companies with fluctuating busy seasons to cope. Maybe year end is super busy for your business and outsourcing would help you manage the bigger flow.