a Knowing When To Outsource for Your Business by Shaun Dallas Dance | Mar 22, 2021 | shaun dallas dance, strategic planning
Even if you are a serial entrepreneur, it can be challenging to choose which tasks to outsource. The rst step is to perform a cost analysis. Outsourcing decisions, like any business-related issue, need to be analyzed before potentially wasting time or money. The cost analysis of determining whether to outsource is a four-step procedure. The rst step is de ning the scope and domain of the task or process you would like to outsource. It is essential to determine those boundaries early because you will be consulting this de nition often. Once that is established, calculate the total cost of performing the task or process inhouse, including sta , materials, and o ce space. Compare this will the total costs involved in outsourcing. Identify any potential for an increase or reduction in revenue by choosing either plan. Once the analysis is complete, subtract the costs of outsourcing from in-house costs, examine potential revenue changes, and determine savings, if any. For most small businesses, several jobs can be outsourced relatively easily. Accounting is one of the most common departments chosen because specialists who are fully versed in