Should you hire in-house or outsource? It’s a controversial question that has been discussed in businesses for years. There isn’t a simple answer to this because there are so many factors that might affect your choice.
Having said that, whether you hire internally or outsource, your ultimate goal is to expand your company by lowering operational expenses and increasing profits. After all, hiring is essential because the success of any company depends on its employees.
What is the difference between outsourcing and in-house?
By outsourcing, we mean using outside assistance to help take on the responsibility of jobs or projects. These could be freelancers, consultants or businesses that focus on carrying out a specific kind of job or project.
On the other side, in-house resources are your current workers. You designate one or more of your team members to work on a job or project when you manage it internally.
Pros of In-House Project Delivery
You will typically find the cultural fit will be a lot better when using staff already working within the department or in another area of the business. Hiring in-house means they will likely work with a team who have the company’s vision and values at the core of the project. This helps create a strong team structure with like-minded individuals and a cohesive working environment.
Additionally, the control you get with working in-house is significantly stronger than outsourcing. This is mainly due to the fact that your employees are readily available to discuss the current project as and when you’d like to. Having staff solely focused on one task avoids distractions and focus switches between other projects. Having staff working on-site allows you to have the most control of the project at hand due to being to manage the whole team internally.
Cons of In-House Project Delivery
Inevitably, hiring in-house comes with a lot of additional financial obligations in comparison to outsourcing. This is because if you hire a member of staff full time you have to put an infrastructure in place, offer employee benefits, provide training, and of course pay a monthly salary. It is a long-term commitment and even when the project ends, you still have to honour the monthly salary stated in the contract.
As well as the added financial responsibility you also have to consider the timeframe you have to deliver the project. If time is of the essence, finding a member of staff in-house who is suitable for the job role and ready for training may be unachievable. It is unlikely that you already have an employee in-house who is highly qualified with the specific skill sets needed for the role. Therefore, hiring the right candidate can be a lengthy process and not always one that is achievable in a short timeframe.
Pros of Outsourcing Project Delivery
Outsourcing is far more cost-effective than in-house hiring. In fact, according to Capital Counselor, the top reason people opt for outsourcing is to reduce costs. There is no need to conduct several interviews and pay extortionate in-house salaries. Outsourcing for project delivery is pretty straightforward. You hire the professional with the expert skills and knowledge your team needs and pay the amount agreed upon, whether that be per hour or for the entire project. After the project is finished, you don’t have any more financial obligations.
As part of the project requirements, there will be instances when specific specialised skill sets are needed to either finish or manage the job. Underdelivering a project you believed you could handle isn’t beneficial for anyone. You are far better off being able to concentrate on your primary business goals and objectives and focus on what you do best. You never know, the future may allow time to train individuals to gain the knowledge and insights needed for a role you would typically outsource. However, for now, outsourcing is a great way to acquire more work and bigger projects.
Cons of Outsourcing Project Delivery
Typically, if you outsource anyone, they are likely to be working with various clients and on several projects at once. This doesn’t allow them to be as flexible as your in-house team would be. Asking for amends and changes may not be as smooth sailing as you hope as these professionals aren’t available to drop all their other current projects to tend to yours right away. If you like to have a lot of control outsourcing may not be the best route for you as you definitely have to step back slightly and trust the experts.
Furthermore, you have to trust who you hire. There are always going to be potential security risks when sharing private and confidential information with anyone, but especially someone outside of your internal team. Trust of course builds over time, you might have worked with a consultant for many years in which case you can confidently trust them. However, take note of all the sensitive information you might share. A good starting point for overcoming this negative side of outsourcing is to have a clear and concise contract written out including the necessary security and privacy clauses.
Do you need help with outsourcing project delivery? With a wide range of knowledge and experience to draw on, RPS are able to work with you and your team to be able to outsource you an expert who will add value to your team. Contact us today for more information.