Taking a Calculated Leap: The Pros and Cons of Outsourcing for a Small Business

Taking a Calculated Leap: The Pros and Cons of Outsourcing for a Small Business

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As the world emerges from a pandemic, it’s now grappling with high inflation and threats of recession. Businesses across the globe are faced with uncertainty due to the tenuous state of the economy. Given these developments, it makes sense that organizations are looking into cost-effective solutions for manpower. This is where outsourcing companies come in.

But of course, no system is perfect, so before you commit to partnering with an outsourcing company, you should know what challenges come with it first. We tackle some of the biggest Pros and Cons of Outsourcing for a Small Business on this blog. At the end of this article, we’re sure that you’ll know whether outsourcing is the right step for your company or not.

Pros and Cons of Outsourcing for a Small Business

Thousands of businesses are taking advantage of the value that outsourcing companies provide to grow their companies. Due to this, the outsourcing industry is valued at USD 261.9 billion as of 2022, and this number is expected to keep growing at a rate of 9.4% until 2030. The exponential growth of the outsourcing industry is due to the many benefits companies can reap from it. 

Let’s check out the Pros and Cons of Outsourcing for a Small Business.

Pro of Outsourcing for a Small Business: Access to experts

Owners of small businesses know how difficult it is to get access to industry experts, especially if you’re operating within a budget. Hiring an expert in-house can compound to significant costs over time.

The good news is that, if you work with an outsourcing company, you gain access to a team of industry specialists who can give you valuable insight at a fraction of the cost.

So, let’s say that you’re trying to grow your business’ social media presence. You can ask your outsourcing provider if they can provide you with a social media advertising expert for your team. With an outsourcing team on your corner, you’re guaranteed to have a professional on your team.

Con of Outsourcing for a Small Business: Communication challenges

While Outsourcing for a Small Business gives you access to a team of professionals from different parts of the world, it can come with a risk of communication challenges. This can come in the form of language barriers, cultural differences, and time zone discrepancies that can impact your operations.

Although usually a team is assigned to work in your company’s timezone, you still can’t ignore the possibility of communication gaps. However, some companies have looked at this disadvantage in an optimistic light, such as having an expert readily available no matter the time.

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Pro of Outsourcing for a Small Business: Increased productivity

Outsourcing companies are usually equipped with the latest technology to stay ahead of the game against their competitors. With a fully-equipped team that’s ready to take on the job, you can rest assured knowing that your business will be well taken care of.

Taking a Calculated Leap: The Pros and Cons of Outsourcing for a Small Business

Con of Outsourcing for a Small Business: Loss of control

Partnering with an outsourcing company means that you lose the privilege of overseeing the work you outsource. This is part of the growing pains of a small business. As an MSME owner, you were probably very involved with the company’s growth so, letting go of some of the work may not be something you’re comfortable with right away.

Pro of Outsourcing for a Small Business: Enhanced quality of work

Tapping an outsourcing company to augment your business’ services is beneficial to your business because you gain the time to focus on growing it. You free up your headspace to focus on improving your company’s products, services, and marketability, aside from improving your customer’s experience.

Hiring an Outsourcing for a Small Business can enhance the quality of your organization’s work, which can result in improved customer satisfaction. So, not only do you get better quality of work but, you also gain quicker job turnaround times.

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Con of Outsourcing for a Small Business: Lack of connection

Let’s face it, it’s not easy connecting with people over the Internet. Now, if you toss in the fact that you’re not directly connected with your team, that adds another layer of difficulty in connecting with your staff.

While Outsourcing for a Small Business provides you with a cost-effective solution to creating a high-quality team, you may not have the chance to spread your company’s work culture to these members of yours.

Pro of Outsourcing for a Small Business: Better savings

Outsourcing tasks is a great way for your company to manage its expenses. Hiring someone in-house can be costly because of the labor costs, benefits, and overhead expenses that come with growing your staff. But, with an outsourcing company, you don’t need to think about any of these.

You gain access to a highly-trained team that’s ready to take on any challenge but, you don’t shoulder the full financial burden of employing them.

How can you find the right Outsourcing company for a Small Business?

Right about now, you probably have an answer to whether an outsourcing company is right for you or not. If you decide to hire an outsourcing business, you’re faced with the next problem. How do you find an outsourcing company that’s right for your business?

In this section, we give you a quick guide on how you can find an outsourcing company that’s right for your business.

Do your research

First things first, do your research. Start with understanding what your company needs to grow and identifying which tasks are becoming too much to handle. From there, you’ll want to look through a series of outsourcing providers who specialize in your industry and who possess the right credentials.

Ask for recommendations

Aside from doing your research, you should also ask for recommendations from your network. Make sure to interview the people who availed of these services and ask them about their experience working with that provider.

Settle on an agreement

Once you’ve settled on a provider, it’s best if you and your partner get your expectations down. Take the time to sit down with your outsourcing provider and talk about your roles, goals, and standards. Just make sure to keep an open line of communication to continuously improve your workflow.

Train the team

Train your outsourcing partner’s team about your company. Make sure to immerse them in your organization’s values, the standard of excellence, and process so you guys remain on the same page.

Monitor the work

In the first few months, it’s best if you keep a close eye on the work that your outsourcing provider delivers. Give constructive criticism and guide them to meet your company’s standards.

Make changes

After the initial break-in period, you and your service provider already have a system down. If there are still some processes that aren’t working, make sure to open this up immediately and come up with a solution together.

Let go

Finally, let go. Outsourcing companies are there to lighten your load and if you continue to watch over your team’s shoulder and micromanage, you’ll never have the time to focus on the critical parts of your business

You need to trust your new team members to get the work done.

Taking a Calculated Leap: The Pros and Cons of Outsourcing for a Small Business

Growing your company sustainably

We hope that you’ve learned all that you need to know about Pros and Cons of Outsourcing for a Small Business. As you can see, it’s not an easy decision to make and you’ll need to compromise on some things to make it work for both of you. However, once you’ve found a provider you can trust, you gain the freedom to reinvent your company’s performance and the time to focus on growing it.


If you’re looking for an outsourcing company that you can trust, you can rely on Innovature BPO to provide you with the services you need. Contact us today to set up your business for success.

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