Ken Wisnefski

To In-House or Outsource? That is the Question...


Congratulations on being a business owner.  You have a lot to think about.  Yes, that is a jocose understatement.  One issue that continuously arises is the notion of outsourcing or incurring in-house workers.  What's your strategy for the ongoing needs?  It's likely not a black and white decision.  It depends on your business structure.  It depends on where you are and where you want your business to be in the near future.  It's not really a decision you can make by merely reading a business blog; but, the following points can help you gain a better perspective on individual decisions.

Scalability
New business owners quickly realize you must think of the present state of business as well as the future state.  Otherwise, thinking strictly in present terms could incur more costs down the line.  Think of it as buying something in bulk at a food store rather than each time the need arises.  Buying in bulk saves money.  If you're employing in-house, you have to think about the ongoing education and skill sets of employees.  Similarly, you must think of scale while outsourcing as well.  If outsourcing, you may have to not only deal with your business' scalability issues, but that of the outsourced service as well.

Cost
A lot of owners opt for outsourcing for certain needs because the immediate cost is lower than employing someone on salary.  This makes sense, but don't underestimate the value of having in-house employees.  In-house employees allow for greater convenience, better transparency, and more passion.  Of course, all outsourced providers are going to pledge allegiance to your account; but, they can't emulate the passion of an in-house worker.  While it may mean more initial cost, an owner may receive greater value from in-house workers.

Branding
Branding has reached new heights regarding online marketing.  There are a lot of opportunities for brands to escape costs through branding.  For instance, good branding transcends search.  If you make a good impression on a consumer, they no longer search for your business' services and products; they come straight to your Web site.  Branding can be performed through social media platforms, many completely free of charge.  However, it's difficult to address branding with outsourced workers because they are not completely ingrained with your brand.  Conversely, outsourced providers may impede branding by sending mixed signals to clients and partners.

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