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When to ask for External Business Support
1.5 minutes read
When to ask for external business support
Outsourcing is the business practice of availing services from a third-party provider to perform tasks and services that ordinarily would cost more to employ an experienced internal employee. Companies are able to outsource specialist functions including accounting, human resources, marketing and information technology services. By brokering external services, operational teams can focus their resources on developing and sustaining core competencies related to the business product or service.
Why seek external assistance?
Outsourcing services in start-ups and small business can help growing enterprises scale, whilst assisting medium sized businesses manage labour costs and ensure sustainable growth. Engaging external support can assist with reducing delivery times, reducing prolonged resource and productivity costs and ultimately provides a specialised knowledge source.
Most businesses begin engaging external assistance when they cannot afford to permanently hire an employee with the necessary specialised skillsets and experiences required to complete a job role or project. A key focus when engaging external resources is to ensure cross-skilling and up-skilling of your internal team members. External specialists should bring short term expertise that leads to the growth of your business.
Potential Risks of Outsourcing
Loss of administrative control
Specialists that are implementing new frameworks, processes, systems or governance controls will be the experts however this poses the risk of relying on the external support on an ongoing basis. It is important that you ensure cross-skilling of internal staff to retain administrative control over your business operations.
Data and Security Breaches
External contractors and consultants often gain access to sensitive and confidential business, employee and financial data. It is imperative that the necessary confidentiality, data privacy and non-disclosure agreements are in place to protect your business. In addition, when providing systems access, ensure security practices are maintained to protect sensitive company data and avoid potential security breaches.
Differences in work practices, communication styles and culture can lead to disruptions in service delivery. Setting clear expectations, deliverables and desired outcomes upfront will assist all parties work as a team to deliver to business objectives.
Advantages of Outsourcing
Increased focus on core business activities
Outsourcing can free up your business to focus on its strengths, allowing your team to concentrate on delivering your product or service to market and allowing time to focus on your strategic direction.
Choosing specialists who can deliver processes and frameworks that help you achieve a more efficient operation, often leads to greater productivity.
Cost-savings can be achieved by bringing in specialist skillsets for a short period of time and employing permanent staff to manage the final outputs implemented within your business.
Contracting specialist skillsets will allow you to leverage knowledge and capabilities otherwise not accessible or affordable.
If you need assistance reviewing all your business attraction and retention strategies, please contact us at Catalyst Central:email@example.com