When Is The Right Time To Outsource?

Many companies are faced with the daunting task of trying to figure out whether or not outsourcing is the answer for their particular situation. The truth of the matter is this, in order to discover when it’s the right time to outsource; one must first ask these questions.

In regards to the first question, it isvery important to prioritize which tasks can be considered foroutsourcing. In a perfect world you would be able to outsource all ofyour processes while still gaining a reasonable profit but, sadlythis is not the case and anyone who tries that approach will end upbroke. By understanding what your immediate priorities are you willbe able to pick and choose which tasks can be outsourced to moreeffectively help you achieve your objectives. To help yourselfprioritize these objections, you must ask yourself the next question.

When asking yourself this question it is vitally important to keep a “Now” frame of mind. What is it that you need to accomplish via outsourcing right now? Also ask yourself “What steps do I need to take in order to help this project move forward?” For example, if my goals are to expand my market, generate more revenue, etc. it is wise to ask which tasks, if any, will help you progress towards those goals when outsourced. If your main goal of outsourcing is to reduce your own workflow, then you may want to re-think your outsourcing strategy. At the end of day outsourcing needs to help you move toward an objective that will help your business to succeed and not just decrease your workload.
Cash flow is obviously a necessity for any business contemplating the option of outsourcing. In certain situations, businesses will use credit to pay for outsourcing without first establishing any type of cash flow. This is without a doubt, the riskiest way to go about outsourcing and I definitely don’t prefer this method unless there is a guaranteed return once the outsourcing partner has finished the job. The preferred approach is this; companies generate some kind of cash flow, and then start to use that cash to help them make more money via outsourcing partners.
Every company is unique in its own procedure and processes. This means that the right time to outsource can be different for everyone. However, by asking these simple questions, and taking many factors into account, a company can always know whether or not now is the time. When the time seems right for your company, it can never hurt to consult with a potential outsourcing partner to get an expert opinion.