Which Functions Should You Outsource to Improve Efficiency?

Whether you’re a small business or a larger one, you should always think about ways to make your business more efficient, save money, and optimize performance. One such method is outsourcing some of the services you require. Hiring a company to perform some tasks shows how you can outsource to improve efficiency. By outsourcing non-core functions like accounting, payroll, sales, and advertising, you add access to the skills and experience necessary for success without the expense of hiring full-time workers when you don’t generate sufficient work to keep them busy or settling for workers with fewer skills who perform a variety of functions.

You can outsource almost any task required for your business, even manufacturing; you should retain complete control by hiring workers in core functions to ensure you deliver on promises to customers. Hence, while you can outsource to improve efficiency in almost any functional area, you shouldn’t outsource core functions that create a competitive advantage for your brand.

Each firm and its owners must decide which services they should outsource to improve efficiency. Firms in the same market might make very different choices in which functions they want to outsource. Today, we’ll focus on which services companies are most likely to outsource to improve efficiency.

Benefits of outsourcing

Outsourcing to improve efficiency is a time-honored strategy for leveraging resources and getting the most out of what you have available. The most commonly outsourced business functions are those associated with professional training, experience, or certifications (or all three), such as accounting and IT. Another popular function of outsourcing is manufacturing. Companies like Nike are actually marketing companies that outsource all the manufacturing and retail functions to another company so they can focus on product development, distribution, and selling.

Outsourcing can help businesses reduce costs, improve efficiency, and access specialized skills. However, it can also come with risks, such as losing control, compromising quality, and exposing sensitive data.

Why are these functions popular for outsourcing? Outsourcing creates efficiencies that make a firm more competitive and likely to succeed. Let’s explore the reasons you might outsource to improve efficiency.

You can save money

One of the major drivers of outsourcing is saving money. When you need a project completed, instead of hiring a full-time employee and paying them wages, holiday pay, sick pay, training, and supervision, you pay a firm specializing in performing a particular function. Sure, the cost per hour is higher as you must pay the firm for expenses associated with performing the function and profits, but you only pay for what you need.

You might also save money through outsourcing if the function requires expensive software or machinery that you can’t fully utilize. Paying thousands of dollars a year in fees for an essential tool that you only use ten hours a week wastes money. Instead, outsourcing allows you to gain access to these expensive tools through the firm you hire. That firm spreads the cost of the costly tools across its clients who require the tool, so each client only pays a fraction of the fee charged for the tool.

At some point, your needs might grow to the point where the cost of outsourcing exceeds that of adding the function to your internal operation. Hence, you must revisit outsourcing decisions on a regular basis to ensure outsourcing remains cost-effective.

You get the pick of the best talent for your project

When hiring for a position, you’re restricted to the people living near your operation or willing to relocate to your area unless it’s feasible to employ remote workers. Since most functions commonly outsourced require specialized skills and experience, hiring these people is expensive. If you can’t fully utilize their talents, you’re wasting money. Hiring less qualified staff to reduce your payroll just doesn’t make sense as they can make costly mistakes due to their lack of training or fail to take advantage of opportunities because they don’t understand how to do them properly.

A great example of this is social media marketing. Companies often settle for hiring any warm body under 30 under the misguided notion that they use social media every day and must know how to optimize their social media marketing strategy.

It allows you to focus on the core aspects of your business

If you started a business because you’re an expert in a certain area, it doesn’t mean you can do everything. Beyond outsourcing to gain access to the expertise you don’t have, outsourcing allows you to focus on those aspects of the business that fall within your expertise or interests.

Even if you do have the ability to perform some functions outside your core area, your time is limited. You can’t do everything and by shifting your focus from one function to the next, you reduce your efficiency. Your business benefits greatly from your focus on the core aspects of running a successful business.

What are the best services to outsource for your business?

Marketing

Marketing is super important for any business as reaching, satisfying, and increasing your customer base is the sole means to success for any business. It’s a good idea to find a digital marketing agency that can help you with everything from getting your site ranking on Google and updating your blog to running digital ads and social media marketing. Speak to a professional no matter what stage you’re at in your business, whether you’re looking to re-brand or just want to bring in more business.

Writing

Blogs are super important for bringing in new customers and viewers to your website, as well as helping you to rank well on search engines. Yet, if you aren’t someone who can write well or you have numerous other demands on your time, creating high-quality content on a consistent basis can sink your efforts. Outsourcing a writer means you can keep up with the demands for fresh content using a freelancer to accomplish what you can’t with your talent and time. Even starting with an AI platform like ChatGPT can ease the burden of producing fresh content consistently.

Of course, even outsourcing your writing tasks requires time to coordinate. Think about the style of writing you want, your budget, and the strategy you’re going for. You could consult with your marketing agency to help you build a content marketing calendar that ensures you always have fresh, valuable content for all your digital platforms.

IT

All businesses need IT services at some point in time. Whether this is to sort out a website, to make a CRM system, or to help with general IT issues, it’s always essential to have an IT source. But, if that isn’t your core business, you might outsource to improve efficiency. Outsourcing means you don’t need to have a dedicated IT professional when you can’t use their talents every day. By outsourcing, you have access to the IT folks you need when you need them. IT professionals working for an agency also tend to be more experienced and up-to-date with the latest tools and best practices.

Other areas to consider when you want to outsource to improve efficiency

Outsourcing options are nearly endless, so choose the ones that fit your needs based on the prior discussion. Some functions to consider as options for outsourcing are:

• Accounting
• Graphic design
• Payroll
• HR
• Onboarding/ training
• Data entry
• Background checking/ screening
• Sales
• Shipping and logistics

Conclusion

These are just a few of the best services you can outsource for your business. It’s important to always look at ways you can save money and keep your business ahead of the competition. By outsourcing, you give yourself a chance to focus on the core elements of your business and make more money, bring in more customers, and do what you know best. What are some top tips you have for outsourcing? Let us know what you’ve found works; we’d love to hear from you!

Need marketing help to support business growth?

We welcome the opportunity to show you how we can make your marketing SIZZLE with our data-driven, results-oriented marketing strategies.  Sign up for our FREE newsletter, get our FREE guide to creating an awesome website, or contact us for more information on hiring us.

Hausman and Associates, the publisher of MKT Maven, is a full-service marketing agency operating at the intersection of marketing and digital media. Check out our full range of services.