Which Services Should Businesses Outsource?

If you’re in the business of performing services or creating products that were previously done in-house by the company’s personnel, you’re engaging in outsourcing. For the most part, enterprises outsource as a way to save money. A wide variety of positions, from customer service to manufacturing to the back office, can be impacted. From its first days as a corporate strategy in 1989, outsourcing became ingrained in business economics.

Outsourcing is a hotly debated topic in many nations today. Those against it claim that it has resulted in the loss of domestic employment, especially in the production industry. Supporters argue that outsourcing encourages firms to spend resources where they are most productive and contributes to the survival of free-market systems on a worldwide scale. Let’s look at some services that businesses can outsource:


To save time and money, many small companies use outside help with their accounting. If you’re not a financial specialist, you’ll need a lot of time and expertise to understand all of your company’s procedures and compliance requirements. Expert accountants can, however, handle several companies’ accounting needs at once. As a result, productivity soars, and costs plummet.


A marketing company from the outside can help you expand your business rapidly when the time comes. You can concentrate on your company’s core operations instead of worrying about things like ad design, content production, and social media posting. Aside from that, these businesses are typically staffed with experts who can assist you in developing innovative ideas and practical methods that you otherwise would not have known about.


The same is true if your business does not have the people or experience to conduct sales calls or build up funnels and procedures oriented toward completing sales agreements. These duties can be delegated to experienced people who will generate more revenue if you outsource them to sales companies or experts.

Information Technology Management

In terms of global outsourcing, the IT sector is one of the most important. Outsourced IT services generated $85.6 billion in revenue worldwide in 2014. It’s possible to use a managed service provider or engage with a company that provides on-demand support for any tech problems or projects you can have.


Tasks Related to Administration

Working from home, virtual assistants are becoming more popular, particularly for entrepreneurs. Virtual assistants (VAs) can do everything, from managing your email to posting on social media. VAs charge as low as $10 an hour, making it one of the most affordable outsourcing methods. For experienced VAs or those with a specific specialization, you can expect to pay anything from $30 to $75 per hour.


An employment contract with an external third-party provider to handle and be responsible for specific HR activities is referred to as human resources outsourcing. Employers have access to many HR outsourcing alternatives, such as a dependable professional employee organization (PEO). An application tracking system for affirmative action, for example, is one possibility. Alternatively, the whole human resources department can be outsourced.

Providing top-notch service to clients

You can outsource your customer care strategy to a call center or chat service if your company deals with consumers primarily online or over the phone. To accomplish this, you must first put procedures in place and ensure that the business working directly with your consumers receives clear instructions from you.


For a small company, establishing a specialized manufacturing site can be prohibitively expensive. As a result, many businesses prefer to contract this stage out. This procedure also does not have to be outsourced. US manufacturing market share is still about 18 percent. To maintain your operations close at hand, you can be able to locate domestic outsourcing partners.

What are the Drawbacks of Contracting Work to a Third Party?

Outsourcing’s drawbacks include hiccups in communication, security risks posed by the increased exposure of sensitive data, and new regulatory obligations. Outsourcing can disrupt a workforce on a broader scale. One typical example is the American manufacturing sector, where most of the work is now done internationally. As a result, more high-skilled manufacturing occupations have developed, such as robots or precision equipment.

Outsourcing can be used for a wide variety of commercial operations, as described above. Once you’ve figured out your choices, it’s time to decide which ones will be most beneficial to your organization. To make sure you select the appropriate kind of outsourcing approach for you, consider factors like communication, quality, and cost. It’s time to choose which company tasks to outsource now that you understand the various kinds of outsourcing.

About the Author

Sign up for our Newsletter

Scroll to Top