Post Image
  A common practice of most businesses is outsourcing jobs to freelance individuals and companies. This could be for different reasons, such as short periods of tasks, shortage of staff, or finance management.
Read more about Business
Smart Asset defines outsourcing as “the practice of hiring someone outside of your business to complete a specific project or task”. Outsourcing could be advantageous to a very large extent. However, there are a few problems that come with it. In this article, I will be highlighting some pros and cons of outsourcing.

Pros of outsourcing

  • Saves cost

Instead of recruiting full-time staff to do a particular job, you can outsource to a freelancer and pay less. The freelancer gets paid according to output, however, whether a staff delivers as they should or not, you are obligated to pay their salary by the end of the month. This means that outsourcing saves you overhead costs, and increases productivity and profit margins. 
  • Saves time

Time is money, and the result can be disastrous when not properly utilized. Outsourcing saves you time in your business.
Sign up for the Connect Nigeria daily newsletter
For instance, if you handle several tasks, it is advisable that you handle the more delicate ones and contract a freelancer to take up the rest. This will save you so much time, trying to juggle everything.
  • Serves as a source of employment

You don’t need to hire someone on your team before they become your staff. The fact that you are outsourcing them, you are already providing a source of employment for them. This keeps more people out of the street. People who do not get to have full-time employment opportunities can now learn skills that they can bring to the tasks assigned to them by the outsourcing company.
  • Encourages specialization

Have you noticed that companies that outsource get more experts to handle jobs? The outsourcing process is straightforward and it is either you can do a particular job or you can’t. It is different from full-time employment which comes with loads of job roles and responsibilities. 
  • Access to more talent

You can’t have access to a reasonable number of talents when you only look inwards. Some freelancers can ace whatever project you plan to work on. You get more options to pick from. It is like going to the marketplace, in search of a particular item. There will be a lot of people selling it, but you make your bidding and choose the one that best suits you.
Register to attend the Connect Nigeria Business Mixer
it’s the same thing while outsourcing. You get proposals from different prospects and make your decision based on your specific needs.

Cons of Outsourcing

  • Unfamiliarity with your business

Since they can get work done effectively, other times, they find it hard to understand your brand. These people are contracted, so they have not spent time with your business. It will take some time to get them to understand your branding and overall operations, which could impede the jobs they are to deliver.
  • Communication challenges

Although technology has made it easy and convenient to interact with people, there are still challenges. If a task is assigned to a staff member, it is more likely that they will communicate better with their boss, than a freelancer who could be countries away. There could be slow response time and challenges with monitoring the real-time progress of the job. In all, outsourcing can save you a whole lot. However, these disadvantages remind you to tread carefully. So, weigh your options and decide whether or not you will adopt this practice.   Featured Image Source: Computer Weekly
Got a suggestion? Contact us:

You might also like:
This article was first published on 9th November 2022


Chidiogo Shalom Akaelu holds a degree in English and Literary Studies, from the University of Nigeria. She is a freelance writer, editor and founder of Loana Press, a budding online publishing outlet.

Comments (1)

One thought on “Pros And Cons Of Outsourcing For Small Businesses”

  • I’ve been looking for photos and articles on this topic over the past few days due to a school assignment, baccaratcommunity and I’m really happy to find a post with the material I was looking for! I bookmark and will come often! Thanks 😀

Leave a Reply

Your email address will not be published. Required fields are marked *