How Can A Business Analyst Know When A Company Should Outsource?

As a business analyst, you are always looking for efficient and effective solutions to various issues and challenges. Whether working for an employer or a client, it’s likely that outsourcing will be utilised in some situations. Knowing when to select this path isn’t always easy, however.

When deciding whether to suggest that a specific role or task should be outsourced, several factors should be considered. Here are six of the best situations where it might be the best choice for your company or client.

#1. If You Don’t Have The Required Skills Or Resources

As a business analyst, you will collect and collate a lot of data to determine what the best method is for overcoming certain challenges. In many cases, though, the company simply won’t have the experience, tools, and personnel to achieve. Rather than launching a whole new department, it might be better to outsource.

There are many examples where this may be the case, particularly when dealing with order fulfilment. When transporting food, for example, experts like Eurocold can provide refrigerated truck hire. In turn, this saves you from needing a specialised fleet of suitable vehicles, as well as drivers, insurance, and other components. Another highly beneficial outsourcing option is app devleopment. Apps require special skills and knowledge to be able to perform everything you need, and whether it is an internal or external app for consumers, taking this on in-house can come at a massive cost. A Cost Calculator can help you to find out how outsourcing this can be more cost-effective.

More importantly, experienced professionals will deliver the best results in their fields. 

#2. When Outsourcing Aids Cashflow

It doesn’t require a lot of research to discover that problems with capital are the most common source of failure for startups and SMEs. Therefore, every business should make key decisions with financial factors in mind. When outsourcing is a more cost-effective option than in-house solutions, it is often the best path.

Expanding the business premises or dedicating a space to customer support may cost a fortune compared to outsourced IT. Furthermore, this approach can save you money in the long run by removing repair and maintenance costs. Likewise, you’ll always have the latest software and hardware upgrades added in an automated fashion.

For the sake of asset management and time management alike, outsourcing makes more sense in a lot of scenarios.

#3. If A Project Is Only A Short-Term Issue

Hiring an employee is a time-consuming and costly process. It is one of the many reasons why you will find that keeping staff turnover rates as low as possible is essential. Outsourcing removes the need for recruitment, onboarding, and future replacement. So, if you are only looking for a short-term worker, it can work wonders.

Several business matters only require workers for a short period. Logo designers, interior designers for your store, and managers to organise a networking event are just some examples. Using influencers at The Exposure, for example, for a digital campaign can also be a great way to boost your exposure and it saves you from hiring permanent staff members.

Aside from the financial and logistical benefits, it allows managers to spend more time on the employees who are on site. This can only encourage increased productivity.

 #4. When The Task Is Related To Staff Development

Business owners and team leaders can certainly mentor their workforce. Similarly, business analysts can make good use of data to guide employees or suggest where improvements can be made. Still, when it comes to actively supporting staff development, outside support is often required.

The company hired employees because they thrive in areas where business owners can not. Hiring experts in cloud computing, sales, or whatever aspect of business you’re dealing with is far more effective. In most cases, employees will respond well to the change of scenery too.

Their added engagement should bring upgrades, which will upskill the workforce with huge results. Meanwhile, team away days are great for building unity.

#5. If A Service Is Needed Out Of Hours

Time is money. Outsourcing roles where 24/7 support may be required is a big step towards sustained success. The right balance between on-site and outsourced workers is key.

Outsourcing security matters for example, including personnel is a wise move. You will no longer have to worry about finding a last-minute replacement when a worker pulls out. Meanwhile, having virtual assistants will prevent you from needing to keep the office open. Likewise, it means you don’t need a designated area for customer care tools and workers.

If a 24/7 service can be provided remotely, it’s almost certain that it will be the best solution especially for a small-to-medium sized company in any sector or industry. 

#6. When You Need An Instant Solution

As mentioned, the recruitment process can be very costly and time-consuming. If your data analysis shows that a company cannot afford to wait before utilising a new role, outsourcing can be the ideal choice. Even if it is only a temporary measure while recruiting a permanent worker. If nothing else, it will successfully remove some of the pressure to hire quickly.

Outsourcing for temporary results can be used in a wide range of roles and sectors. Whether you need a technical writer, an accountant, doesn’t matter. The ability to fill in the gaps in the business operations without disrupting your workflow is a step in the right direction. As a business analyst, encouraging smooth transitions will work well.

The Final Word

If outsourcing will deliver the best results for a company or client, it’s something that business analysts should be eager to promote. Whether it’s a temporary or permanent approach, it can be a great way to boost productivity and profits.