Outsourcing has grown in popularity over the past decade because of its many benefits for businesses that are established and just starting outThere are plenty of reasons why companies need to outsource, for example, it can save valuable time on operational tasks and allow business owners to focus on business objectives. However, it’s also important to ask, When should you outsource?Let’s look at some situations where it might be beneficial! 

When you need to reduce costs

One of the top benefits of outsourcing is cost reduction, so if this is a priority for your business, it might be time to take that leap. Strategic outsourcing can often be more cost-effective than hiring full-time employees, especially for tasks or projects that are temporary or sporadic in nature.

You can cut back significantly on overhead costs that come with maintaining in-house facilities, personnel, and equipment. You can also enjoy lower labor costs when outsourcing to companies in countries with lower living costs.  

When you need to focus on core competencies

Several companies turn to outsourcing when they need to realign to their business objectives. In fact, according to Statista, 57% of businesses turn to outsourcing in order to focus on core competencies. 

The need for outsourcing becomes apparent when you notice that your team’s attention is getting diverted to activities outside their scope. When outsourcing non-core functions like technical support and customer service, you alleviate the strain from your in-house team. This allows them to focus on increasing efficiency and competitiveness in primary business areas. 

When you lack time and resources

A fast-growing company may need to outsource when the demands of the business start surpassing the capabilities of its in-house team. For example, your team could be prioritizing customer service despite it not being what your business mainly offers. This can also present itself in a situation where a business owner does not have enough time to discuss strategy because they’re too busy closing accounts. 

Another benefit of outsourcing is that it allows you to gain access to specialized talent and resources without the need for costly in-house hiring. By delegating time-consuming tasks to an outsourced team of experts, you can improve productivity, accelerate project timelines, and achieve your business goals more efficiently. This is especially important when your time and resources are going toward activities that aren’t directly contributing to your bottom line. 

When your startup starts growing

Once your startup has secured its first round of Series A funding, you might notice a few changes happening in your small business. The growth stage of a startup will see your team needing to grow to meet business demands. As exciting as this time might be for fast-growing companies, it can also cause your team to overexert themselves to keep up with the growth.  

When this happens, it’s usually a good call to outsource to a third-party service provider. You don’t have to be a large company to outsource. In fact, you don’t even need to outsource a full team right away if that’s not what your company needs. Whether you need 1, 10, or 100 new people on your team, outsourcing streamlines the process and makes it easier to scale. 

Not only will you be able to save on the costly and time-consuming process of vetting, hiring, and training new staff, but you can also rest assured that your provider will match you with a team of experts who specialize in the field. 

Ultimately, it’s time to outsource when it results in advantages that far outweigh what your company can do solely on its own.  Whenever you’re ready, FGC+ can walk you through the entire outsourcing process from start to finish at www.fgcplus.com.