In decades past, outsourcing was considered a rather controversial topic, a kind of byword that meant sending the jobs of hardworking North Americans across the sea or south of the border to factories in countries where human rights and fair wages were not of any substantial concern.
While many of the arguments against traditional outsourcing and globalization may remain valid, we have to recognize that the word “outsource” has taken on a rather different meaning in recent years.
When we hear of outsourcing, we should no longer think of sweatshops and poor working conditions, but instead a global marketplace where people from around the world have access to incredible job opportunities, regardless of their physical location.
In fact, the mechanisms that make outsourcing possible allow my team and me to work remotely and travel freely as we like—and we’re hardly exploited.
As a small business—and especially as a startup—properly managing the little funds that you currently have is of utmost importance. The funds that you manage are likely coming from your own pocket or from the pockets of investors, possibly making the stakes even higher than if you were CEO of a large company.
In addition, hiring full-time workers and footing the bill for employee benefits, such as healthcare and dental, is a luxury that only larger, more stable businesses can afford. Regardless, you still need the manpower to accomplish your daily operations and continue generating profits.
Outsourcing, on the other hand, allows you to keep running your business, without the additional costs of maintaining full-time employees.
As its name might suggest, a startup has a multitude of startup costs that are incurred in the first few years. Many of these expenses are related to one-time projects, such as designing websites, setting up technology, designing logos and branding, and more.
When you choose to outsource, you’re free to hire workers by project or by an allotted time period. This, of course, is much more affordable than maintaining an in-house team of designers, software engineers, and writers. This also allows you to change personnel more easily, eliminating the ceremony of “letting employees go.” As the job comes to an end, outsourced workers simply move on to their next project, as they’re not tied to a single job or client.
One of the greatest advantages of outsourcing is that there are generally little-to-no training costs involved in the onboarding process. Exclusively hiring full-time workers limits your options and forces you to train the employees that you already have, rather than seeking out specialists who are already trained and experienced in their field.
Online marketplaces like Upwork allow you to find talent that’s already tried and true, with reviews from other employers. You can also view their qualifications and skillset to see if they’re the right match for you.
Like we mentioned earlier, hiring full-time employees and maintaining an in-house team limits your options for seeking outside expertise. When you’ve already invested so much money in full-time salaries and employee benefits, you are somewhat forced to stay within the current pool of talent that’s sitting in your office.
With the advent of remote work, you can find workers from all over the world who have the right skills you need to get the job done. A larger pool of talent also increases the chances of finding that perfect employee who has that “X factor” you’re looking for.
Most of all, outsourcing allows you to get “more bang for your buck.” Rather than spending all of your budget on a team of full-time employees who are “generalists”, you can hire a team of experts for less.
While there are certainly many benefits to outsourcing, there are some disadvantages and caveats that simply can’t be avoided. An outsourced worker often lacks loyalty and a sense of community that a full-time employee would otherwise have. Language barriers, differences in time zones, and different ways of doing things can also add to the confusion and result in mistakes being made.
Therefore, the recommended course of action is to maintain a loyal, core management team that provides oversight, helps onboard outsourced workers and gets them up to speed with how things are supposed to be done. They’ll add stability to your company when outsourced workers come and go, and will help you maintain your company culture. A dedicated management team will also provide you with routine updates on the company’s performance and goals.
If you’re considering outsourcing your company’s lead generation efforts, schedule a quick chat with me and find out how SalesBuddy finds qualified leads and sends them directly to your Inbox or CRM—guaranteed.
"As a business owner, I put big money into sales and marketing without ever really knowing what results I was going to get. Tired of this ambiguity, I decided to create a new kind of sales support company: one that provides a guarantee.
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