It’s impossible to start a business without noticing how everyone waxes lyrical about outsourcing. Some go as far as to say you can’t make a go of things without outsourcing at least a few services. Jobs like IT and accounting certainly get a lot of attention here. If other people were anything to go by; outsourcing is a way to easier operations and cheaper costs.Don’t get us wrong; outsourcing is often a worthwhile option. It provides opportunities which wouldn’t be possible otherwise, especially for small businesses. But, it’d be naive to assume operations like these are all roses. When it comes down to it, it’s actually possible to lose money through careless outsourcing.We know; that’s a shocking statement, right? But, the facts speak for themselves. Blindly outsourcing could soon lead to trouble. Hence why it’s past time to let this outsourcing cat out of its bag. Read on to find out how going too far here could cost you.
You could pay for services you don’t needMost ongoing outsourcing options call for monthly fees rather than one-off payments. On the surface, this looks like a plus. With outsourcing sorted, you’ll never need to fork out vast amounts for repairs and such. But, there is also a risk of paying for services you don’t use. You’ll need to pay your fee regardless of whether your call on that IT company. If this happens a few times, you’ll chuck money away. If you think this is happening, it may be worth considering something like the on-demand IT Support offered by Terminal B. That way you only pay for services you use. It is worth noting that things like accounting are exempt. You know without doubt you’ll need that. But, if there’s a chance you won’t call on the company in question, consider whether they’re worth what you’d pay.
You’ll do people out of a job
Extreme outsourcing could also lead to low employee morale. At its heart, outsourcing is removing the need for regular employment. If you outsource a variety of services, then, your team may worry about replacement. In the long term, you may even find fears here lead them to jump ship. And, that’s bad news for obvious reasons. To stop this from happening, keep outsourcing minimal where possible. IT services may not matter, but if you start outsourcing things like marketing, your staff will start to sweat. Instead, delegate jobs like those between the team you have on hand.You could annoy customers
Note, too, that going too far with outsourcing could annoy customers. They’ve come to your company for a reason, after all, and they’re paying you for a service. If they discover you’ve outsourced things like design or manufacturing, you can bet they won’t come back. Instead, stay transparent and do the work here yourself. It would certainly pay to ensure your outsourcing doesn’t impact your products. All the better for keeping a happy and loyal customer base for a long time to come.
