Reasons to Consider Outsourcing

Employment Advice, HR

Outsourcing is an increasingly popular strategy that’s utilised by companies worldwide. Essentially, it’s a savvy way of filling a gap and accessing resources with minimal stress to get a job done. From a management perspective, it has the advantage of reducing costs and curtailing risk.

What is Outsourcing?

Companies that choose to outsource make use of established contractors to fulfil business requirements. It might be as a stop-gap for a particular need or an ongoing basis. This transfer of business activities could encompass relocating complete business processes, a selected department’s functions or the production of goods or services. One big advantage of outsourcing is that a company can access resources, at a competitive rate, without having to incur establishment and maintenance costs. 

Essentially, outsourcing is the reliance on an individual or team, not under your direct control. They produce a piece of work or a process outcome that meets a required objective. A limited list of examples of outsourcing opportunities include:

  1. Merchandising.
  2. Design work (engineering; interior; product; structures; landscape; process; website; etc.).
  3. Component production.
  4. Recruitment.
  5. Copywriting.
  6. Journalism.
  7. Accounting.
  8. IT programme development.

Why Outsource?

No company is able to fulfil all its business requirements. Thus, to a greater or lesser degree, all companies engage in outsourcing. In recent years, lockdowns and quarantines highlighted the advantages of outsourcing. Thereby increasing the availability of talented personnel who have embraced the independence of offering their skills on contract as the demand for these services grows.

5 Reasons to Outsource

  1. Control and reduce costs.
  2. Increase focus on core business.
  3. Address capacity issues.
  4. Access better skill sets and intellectual capacity.
  5. Improve quality.

How Does Outsourcing Reduce Costs?

The top reason for outsourcing is the reduction and better control of costs. Two factors which enable a company to remain competitive within the marketplace and grow.

Outsourcing is a cost-effective way that businesses can access skilled services but only pay for what they need. If done properly it can result in smaller budgets paying for focused expertise and improved productivity.

A hidden cost within many businesses is the opportunity cost of management’s time. This is particularly relevant when a company wants to upscale. Outsourcing ensures that core staff continue to focus on the essential tasks and revenue-driving activities they’re contracted for. For example, it allows existing managers to access the skills of specialised staff they require, but without the need to spend time recruiting personnel, integrating them, training and overseeing work performance. It also decreases the risk and cost of attrition. This is because outsourcing places the responsibility on a third party rather than in-house managers.

Additionally, outsourcing can decrease equipment and software costs. It ensures that a company is utilising the latest in technology, without having to upskill staff or invest in hardware and software upgrades. Outsourcing also means lower overhead costs, as, for example, less office space is required.

Why Does Outsourcing Improve Capacity?

Every company aims to save on overhead expenses in order to maximise profits. While, ideally, maintaining quality and productivity. Outsourcing is something that a company of any size can do and thus provides a way to fulfil these multiple goals. This is because it enables companies to constantly acquire a competitive advantage by accessing the best talent and remaining flexible.

Pay for what You Need:

Not all of the best people needed for a specific job are located within close proximity to a company’s base. Outsourcing provides companies with the option to access the exact skill set they need. Thereby, better preventing the compromise between just getting a job done vs having a task optimally completed.


Outsourcing enables a company to access the specific skill set they need for the time period they need it. This means that a company isn’t tied to one person fulfilling all of a process’s needs. Thus, enabling them to tap into specialised expertise each step of the way. Nor are they locked into paying a salaried employee when their skills aren’t most applicable or required. All of which is also an effective way of saving on the bottom line.

Productivity and Outsourcing

Outsourcing tasks to those who can complete them better than in-house staff makes sense from a productivity perspective. Two of the main reasons why this is true are the reduction of liabilities, and time efficiency through delegation.

Hiring an expert decreases your liabilities. This is because the job is done by someone who knows exactly what they are doing. Thereby, decreasing the probability of mistakes and mitigating learning on the job and guessing vs knowing something.

Productivity often declines as a company’s scope expands or the demand for its services increases. Both scenarios are what successful businesses aim for. Therefore, a viable and cost-effective solution should be on hand. The reason that productivity is likely to decrease is due to limited resources. Delegating tasks through outsourcing enables companies to access additional resources to accomplish non-primary tasks. While focusing existing resources (staff) on key work functions. This can also result in time-saving for those employed at the company because multiple tasks can be done in parallel. As opposed to being limited to sequential task completion by an existing workforce.

Why Hire Someone to Help You Outsource?

An agency that specialises in outsourcing can better ensure that you access the right suppliers. Those who have the necessary infrastructure and resources to enable your business to be cost-effective, efficient and upscale.

The Key Recruitment Group takes the burden of finding and retaining the best fit and skill set for your company. This is done by ensuring continuous value for your money through a highly proficient full-time office or home-based staff.

Contact us today to hear more about how we can assist you in growing your business, better limiting your risks and reducing your overheads.