Are You on the Fence About Why or Why Not to Outsource?

by MBS Administrative Services on 07/03/16

There comes a time when every business has to decide whether it is more beneficial  to outsource their front and back office support.  Some businesses will find that it is worthwhile to outsource all of their office support while others find that it is more beneficial to keep some of the office support in house. 

 

If a business is  experiencing rapid growth for only a short period of time, it is usually beneficial to outsource the office support for that period of time.  It will be more cost effective for the business to pay another company to do the work instead of hiring more employees for a shorter amount of time.  The other company is already capable of doing the work, whereas the business would need to train the new employees and give them benefits.  Outsourcing can be perfect for businesses that do a lot of seasonal work.

 

Businesses will also outsource their office support to save money on office space and utilities, increase efficiency, start new projects quicker and stay focused on the core of their business.  Businesses also do not need to worry about managing the employees of the firm that they have outsourced their work to.  This saves the business even more time, because they do not need to replace employees, do performance reviews or continuously update employment manuals.

 

We recommend great caution when choosing to outsource.  Most businesses are concerned with losing spans of control when they outsource.  Others feel the outsourcing company may or may not have the same standards as their business, because they are only doing it to make money.  Alternatively, they have nothing to lose if the standards are not preserved.  In these scenarios, we highly recommend asking process based questions and checking references if a trusted colleague or company did not referee them to you.

 

In the past, outsourcing companies have been phenomenal for hidden fees.  This was usually in reference to incidentals that maybe required but not mentioned in the original contract.  Such as projects that involve multiple levels of servicing.  However, avoid this by working with outsourcing companies that are transparent in their communications and invoicing.  Look for statements on their website of proposal that state “No hidden fees.” 

 

One of the biggest concerns of outsourcing is the confidentiality and security in the conveyance of information.  We recommend signing nondisclosure and consulting agreements with the outsourcing company.  Moreover, analyzing delegation of essential and non-essential tasks will minimize breach of information risks.  We discuss this more in detail in our essential and non-essential tasks blog.

 

With so many pros and cons, it is easy to see why every business needs to decide whether outsourcing is a good idea.  As long as a business sets up the outsourcing appropriately and there is significant time and financial savings, it can become a mutually beneficial long-term business relationship.

 

At MBS, our mission is to provide virtual office support that creates an atmosphere of professionalism, effectiveness and customer satisfaction for industry leaders, entrepreneurs and organizations.  We are a US based outsourcing company offering talented, dedicated resources to clients seeking to streamline their processes. We offer competitive rates with no hidden fees.  For more information on how we can help streamline your processes with our virtual office support solutions schedule a consultation today.