Arguably, no one would say otherwise regarding the effectiveness of outsourcing. In essence, the benefits of outsourcing are so glaring, from cost savings to affordable access to expertise and quicker production time/faster delivery to the target market. However, it’s also good to learn about some outsourcing pitfalls to avoid in order to maximize the benefits that come with this great business tool.

1: Being in a Hurry to Hire

You’ve just learnt that outsourcing will help you save huge cost on staffing, and you just rushed off to find and hire outsourcing providers. That’s not the way to go about outsourcing. You should first sit back to identify the need of your business in terms of tasks, staffing capacity and the nature of your business functions.

2: Not Knowing Whether or Not It’s Time to Outsource

As hinted earlier, you should always take calculative steps before outsourcing. Don’t just outsource because others are doing so. You should be on the lookout for the signs that precede outsourcing.

If you are wondering what these signs are, they include the following;

• You and your present staff can no longer handle the tasks alone. If you and your present staff are overworked, it means there are more tasks than the number of people available can handle. In this case, you should consider outsourcing instead of hiring full-time staff.

• You no longer pay attention to the core business task that grows your brand. As a result, your brand’s image starts to wane. This is because you are busy with other none core tasks.

• You need expert service such as information technology but can’t accommodate the high salary involved in your budget. This is the right time to rather outsource your information technology.

• You’re paying less attention to your customers because you and your employees are busy with other tasks. Then, you should outsource your help desk.

• You are lagging behind in delivering your products to the market on time due to delay in finishing production. As a result, your competitors are always having a better share of the market. You should consider outsourcing some aspects of production to quicken completion and delivery.
  …and more

3: Not Adopting Standard Procedure to Interview an Outsourcing Provider

This is why you should take time and follow due procedure when considering outsourcing. If you are in a hurry to outsource without adopting due process to interview and find out if the independent contractor is an expert in handling the task you wish to outsource, you may end up with the wrong outsourcing provider. So, interview and hire a freelancer just the same way you would do when hiring a full-time employee.

Take heed to these pitfalls as you consider outsourcing.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams