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Business Activities That You Should Never Outsource to A Third Party

Outsourcing is the need at this moment and there are various tasks for your business that you may want to outsource some time or the other. You can easily reduce the overhead cost of the company and also focus on the core business objectives of your company without overextending your staff.  But one thing which is crucial is to understand is what to outsource and what not to.

business-activities not to outsource

Today, globalisation and hyper connectivity has made outsourcing very easy, especially in the early phase of your initial start-up. The essence of outsourcing is that it helps to identify the tasks that can be easily handled by third party experts. And it’s sometimes better to pay others to complete pertinent tasks on behalf of the company. Though outsourcing may serve a great tool to handle limited resources, but it doesn’t provide an answer to every issue that you may face.

If you are focusing on some specific segments to outsource for your business, there here is a list for those things that you should not outsource to software service providers.

Don’t Hire Outsourcing Company for Core Competencies:

The first step that you need to consider during outsourcing is to indemnify your core business model and your expertise.  Understanding the crucial aspects of your business would help you to determine the segments that you should not outsource.  Always remember that outsourcing is a great option to get jobs done where you fail to develop the expertise in-house.

Maintaining An Effective Business Relationship

You should not outsource your core business functions as it will take away the soul of your business. Since the company that you hire to perform may not be as devoted and attentive to the company’s success as you are.

Don’t Outsource a Problem of Your Company:

You can’t just manage a company without encountering some crucial issues along the way. The solution is never outsourcing and if you don’t understand the problem yourself, then you cannot expect any third party to understand the situation.  In case you hire an outsourcing company thinking that they can develop an effective solution, then you have missed the point.

This is especially true in cases of technology or software issues or any internal management problems because by depending on any third party to solve such technical challenges, you would miss out the chance of completely understanding how things work in your company.

Stop Outsourcing Termination Management:

Again this is really something that needs to be handled internally. In case you hire any third party to manage your termination process, then remember that there are things beyond reports which contribute to the productivity of your employee. The exit interview should always be handled by you, because it is managers who should conduct this interview with the parting employee. The feedback that you get while conducting a face to face interview will give you an opportunity to retain them if essential and also contribute to improving the company culture.

Don’t Outsource When it is too Expensive:

Cost effectiveness is one of the basic advantages of hiring an outsourcing company in India. Since social security, health care and other compensations often lead to reduction in labour costs, it becomes a great factor for consideration. Even though several opportunities to reduce the cost exists, but you should not go for anything that exceeds your budget. In case you do that, instead of leading to a financial gain, you may run into the risk of exceeding the budget for the project.

Summary:

Outsourcing offers a quick access to industry specialists, increased flexibility and reduced costs. But there are situations when you should not outsource some specific tasks as it may lead to negative impact. You must retain the core company activities in-house for best benefits.

 

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