You might be wondering whether your business should hire in-house talent or outsource particular services. When making your decision, it’s important that you realize that there are both perks and downfalls to each choice.
If you’re unsure as to which option is better for you, here are some key pros and cons for each one:
When you hire in-house, there are numerous, prominent benefits that you can reap, including:
- Being able to talk to them face to face – these conversations will ensure that your workforce is engaged, leading to more streamlined and efficient tasks being undertaken. In-person collaborations can also guarantee that productivity levels remain high throughout the process.
- Loyalty and reliability – when you hire in-house staff, you can have the peace of mind that they will stay loyal to your business and reliable throughout their time at the company.
- You can scale your business and offer room for growth – by hiring a wide range of professionals, you can scale your business and offer room for growth within their roles.
- You’ll have full control over the quality of work – when utilizing in-house staff, you can guarantee that you have full control over operations and the quality of the work that’s carried out.
- Technical solutions could be fixed faster – as soon as an issue arises the IT team can direct their attention to it and ensure that it’s resolved; whereas an outsourced agency might have a first-come, first-served system, meaning that your business isn’t a priority.
However, there are several cons with this choice that you should also consider:
- It can be difficult to find talented and skilled staff – depending on where your business is operating, it could be difficult to find a suitable match for the role at hand.
- It will take time to hire and train employees – the hiring process is lengthy, meaning that you’ll lose time that could have been spent elsewhere. Also, when staff need to be trained, it will not only take a while for the training to be completed, but it can be very costly to your business.
- Salaries are expensive – when you have to hire skilled professionals it comes with a large price tag that many smaller businesses might not be able to afford.
Many businesses are turning towards outsourcing globally because of the endless benefits that come with this choice.
However, when looking into outsourcing, you first need to determine what you’re going to use the external agency for. Will they assist your business with IT solutions, support your marketing, social media or another aspect? Once you’ve got this sorted, you can start to look at different agencies (learn more here), comparing and contrasting them based on their experience and prices.
Here are some key pros related to outsourcing:
- A greater breadth of skills – typically, an external agency will come with professionals that are already highly skilled, have experience and the expertise that businesses require. This means that you don’t have to take the time to train them.
- It’s easy to find talent – the global market for outsourcing is ever-growing and because of this, it’s incredibly easy to find talent, no matter where you’re located in the world.
- It’s cost-effective – by outsourcing, you won’t have to pay a large annual salary. Instead, you only have to pay for their services either on a short-term, project-to-project basis. Of course, some agencies offer longer-term solutions with an annual fee, but this is still less than hiring an internal employee.
- Up to date equipment – outsourced agencies, whether they offer IT solutions or another aspect will have the most recent equipment and resources at their fingertips. This is particularly beneficial if you’re opting for IT, however, as it will help to guarantee that your business is safe from cyber threats.
However, although there are many benefits, there are also some cons to keep in mind:
- Communication gaps – if you’re outsourcing work to an agency that’s in a different time zone it could make communication with them difficult. The same goes for an agency that’s taken on several projects at a time – as they might not be able to respond straight away.
- Exposed intellectual property – although many external agencies are trustworthy, others might come with the risk of exposing your intellectual property.
- Experience can be exaggerated – unfortunately, some agencies will lie about the experience they have in that field. This leads to subpar work, which will cost your business hundreds, if not thousands of dollars in the long-term.