The decision to outsource business operations and projects is very crucial for every company. The PDF talks about the universal question of whether to outsource or not, helping SMEs realise the raised productivity and profitability they can get by smartly outsourcing their projects.

1. The Universal Question –
To Outsource or Not?
You own a business.
You have a competent and experienced team of workers.
The team is handling all your projects proficiently. And, you are getting more projects. What should
you do now?
Should you outsource the projects, or you should not?
Find the solution to this universal question – To Outsource or Not?

2. The question in itself, calls for a thorough analysis of your business’s current situation and your
outlook towards the outsourcing bandwagon. If you are comfortable enough to let your project’s
being handled by another company, then the first thing to think about is the underlying cost factor!
In-House vs Outsourcing – The Cost Aspect
Let’s say you get a new website development project and you are planning to outsource it to one of
the leading outsourcing companies India. Now, the first thing that needs your consideration is whether
outsourcing will bring you more cost effectiveness, or would it be a better option to keep the project
for the in-house team?
Retaining a particular service internally or outsourcing it on the basis of ‘cost’ alone is one of the
most common practices that organisations today follow. However, this isn’t a good practice!
It is not only the price that you pay to the outsourcing service provider, but also the time and efforts
that you put into the project to get the tasks completed by their team. Thus, make sure you include all
the costs – the amount paid to the outsourcing agency, the time consumed to get the project completed
on the dot, the training or efforts put in to get the things done in the right manner, etc.
Do a comprehensive Cost Benefit Analysis (CBA), and assess whether it would be a good option for
you to keep the project for the internal team, or would it provide better results if you will outsource it
to another company.

3. Things You Should Not Avoid While Outsourcing Your Work
Once you have ascertained the Total Cost of Outsourcing your project and if the decision is To
Outsource, then the next thing that you need to do is to keep certain important points in mind. From
entering into a formal contract, to choosing a service provider based on the past work concluded by its
team, there are several things that you should consider while contracting out your work.
Here are a few important points that you should definitely pay attention towards!
 Sealing the ‘Deal’–
It is extremely important for you to make sure that you outsource your requirements without
overlooking the need of having a clear and transparent contract with the subcontractor. All the
terms and conditions, the cost aspect, the stipulated timeframes, along with the different
obligations, should be explicitly mentioned in the contract. Even if you are outsourcing your work
on a renewal basis, still it is important to have a clear cut contract in place, and not to count on a
tacit agreement.
 ‘Quality’ Over ‘Hearsay’
No matter whether the organization you are planning to outsource your work to is a well-known
outsourcing service provider or not. You must have a look at the various samples of their work.
After all, “seeing is believing”! Make sure that you get enough detail about the previous clients of
the subcontractor, and if possible, contact them to know about their experiences and overall
feedback about the company you are planning to outsource your work to.

4. Remember – Every project is different. What might have worked well for one company, wouldn’t
necessarily be the right option for you! So, evaluate all the aspects and select the right company,
based on your project and expectations.
 Don’t Forget to ‘Communicate’
Outsourcing your project does not mean you will not have to track its progress. Apart from telling
your requirements clearly at the outset, it is also important to take the reports and have a look at
the progress made in the project intermittently. Communication, here, is the key! So, make sure
you are in touch with the latest happenings in the tasks that you have outsourced to another
company. After all, you are the one who is accountable to the end client for the project!
 Do Forget About – ‘All or Nothing’!
It is not necessary to outsource your entire project to the outsourcing company of your choice.
You can always opt for partial outsourcing. If you have got a website development project and
you have a competent team of developers, but don’t have a proficient content development
department in house, then you can simply outsource the content writing services to another
company. Why to outsource the entire project, when you can handle more than half of the project
in house? Not a smart decision, right? So, just go for partial outsourcing, whenever it is viable.
 Check the Financial Solidity
Is your outsourcing partner earning a good amount of revenue from its clients? What would be the
approximate turnover of the subcontractor you have chosen? These questions might seem to be of
little importance when the work being done by your outsourcing company is wonderful. Still, you
got to have the answers to these questions. We tell you why! It’s important for you to measure the
financial stability of the company, because the last thing you would want to happen is the agency
going bankrupt. Because then the question would be – what will happen to your project as well as
the data and information you secured with the agency? This becomes all the more important when
you deal with an outsourcing company that is miles away from your business location.

5. So what's the best?
In-house, outsource or both of them? How would you be able to assess what will work right for
you?
Evaluate all the aspects related to outsourcing your work requirements and have a look at the
industry trend. Perhaps, the right mix for a digital agency that needs more resources to handle the
increasing number of projects would be to pool in-house development with some outsourcing.
With such a mix, keeping critical & much confidential information in-house and having the
convenience to cater to the clients’ needs swiftly becomes easy!
The bottom line is to settle for the right scenario and not to go for such a company that offers
affordable but low quality services. In this competitive era, you cannot afford to nickel-and-dimed
any of your projects to death!
So, be careful and extra smart. Outsource your work only to those who are worth it! After all,
every single project you undertake is important. Isn’t it?