Talent outsourcing has become a common practice, and for a good reason: many benefits exist.
During and since the pandemic, outsourcing priorities and demands have altered.
Technologies, work styles, and borders have all changed, and today’s vast pool of remote workers gives companies access to top talent globally.
As companies are increasingly under pressure to reduce overhead costs and increase output, many have opted to contract a third party to provide services, perform various tasks, or handle operations within the organization.
Some business functions commonly outsourced include administrative tasks, content writing, website and social media development and maintenance, accounting services, human resources, and customer support, to name a few. But there are also some downfalls to sourcing a third party.
In this blog, we will uncover the pros and cons so you can decide if an outsourcing partnership is right for your organization.
Pros of Talent Outsourcing
Cost Savings and Increased Efficiency
By contracting out tasks to other businesses, you can reduce the labor costs for your company. The third-party company hires the workers to carry out the activities and oversees their compensation, benefit plans, and training. It enables your business to concentrate its labor expenses on your core personnel.
Your equipment costs can be reduced by outsourcing, as hiring someone from outside your company may be less expensive than purchasing new equipment, moving, or changing processes.
Increased productivity, efficiency, and cost-effectiveness may result from outsourcing tasks to sources with greater expertise. Your organization can boost efficiency by focusing on your core business strategy tactics, such as hiring, training, facilities, and other resources.
Access to Specialized Skills and Expertise
Although your team may be a group of knowledgeable and qualified individuals, they may still need to develop greater expertise in a specific area.
Outsourcing certain functions will free up time for your employees to focus on their knowledge and how they can contribute to your company. In turn, that leads to increased innovation, creativity, and productivity.
Focus on Core Competencies
Sometimes a company's most vital human resources are tied up taking care of administrative tasks. Outsourcing these tasks would free your core staff to focus on the company's future growth.
Cons of Talent Outsourcing
Loss of Control and Flexibility
You might be constrained by strict contract agreements when outsourcing tasks to another business. Software, processes, protocols, hiring procedures, and scheduling may not be under your control.
Solution: Review several agencies and negotiate conditions that best suit your company's requirements.
Security Risks
Data security may become more challenging with outsourcing. Using technology to connect and share information across numerous sites during outsourcing might increase the risk of data leaks.
Additionally, your organization will have less control over hiring practices and personnel policies, limiting your ability to manage employees' knowledge about your business.
Solution: To mitigate risk, consider checking data agreements and ensuring that any tools you use are compatible with those of your partner organization. Establish a protocol that grants third parties access to sensitive information strictly as needed.
Negative Impact on Employee Morale
Your corporate culture, and particularly staff morale, may be impacted by outsourcing. Employees may grow irritated as workflows become more complex if they need help understanding why outsourcing is necessary. It's especially true if the location of the outsourced company is in a different time zone and they feel like they are being replaced.
Solution: Motivate staff by providing training in additional fields that will help them succeed in their current position. More optimistic perspectives on this can also be encouraged by open communication about how outsourcing can benefit them and help them meet their KPIs.
A note from a customer
“From blogs and emails to social media posts, being the single point of contact for successful marketing campaigns can be challenging. That is why I am so grateful for the session at Directions 2022 when I met Jon and Diane from Marketeery. I remember listening to them speak, and in my head, I just kept repeating “YES, YES, and YES”!!! Finally, I wanted someone who understood my needs and could help me in the Microsoft and Sage Intacct marketplace.
It has now been a year since we met, and I couldn’t be happier. With monthly meetings to keep us on track, both Jon and Diane are fabulous. They are always open to new ideas and creative collaboration. Together we have constructed multiple eBooks, infographics, blog posts, and email campaigns, all to help drive traffic and leads. Looking forward to building more in the future!” - Stacey Campbell - Director of Business Development, Express Info
Conclusion
Businesses must carefully examine the benefits and potential negatives before making outsourcing decisions, whether they are doing it to reduce costs, gain access to specialized talents, or increase productivity.
Outsourcing is an excellent solution for companies that want top talent but don’t have the resources to attract and retain the right people. In addition, organizations that don’t have enough work in certain areas to require a full-time role can benefit from the cost savings of outsourcing just what they need to operate the business.
Partnering with an organization like Marketeery can provide you access to leading strategies and talent to fulfill your marketing objectives. As a full-service marketing agency, Marketeery understands what works and what doesn't in the tech industry.
Because we work with businesses of all sizes, we can recommend the most effective programs while staying within your budget. We'll walk you through laying the groundwork for your brand's success, but our service commitment doesn’t stop there; we’re with you at every step, from project inception through execution and results measurement.
About the author
Marketeery founders Diane Saeger, CEO, and Jon Rivers, COO, each have over 25 years of experience helping hundreds of tech firms worldwide amplify their message to capture more business.
Our talented team of graphic designers, web developers, SEO, and social media specialists, bloggers, copywriters, and industry experts create memorable marketing.
We've sold, implemented, and marketed ERP, CRM, ISV (third-party solutions), and other technology solutions. Our hands-on experience taught us that all marketing should be clear, relevant, and supported by evidence to convert prospects into customers.
Other marketing firms may understand the fundamentals of generic marketing but lack the strategic insight we have gained in the technology sector. We know how inconvenient it is for you to educate your marketing team on your industry. With Marketeery, you won't have to do that. Our team understands the intricacies of various industries in the tech sector, so we can immediately begin producing relevant content.
When you entrust your brand to Marketeery, you will see results.
Contact Marketeery for a no-obligation evaluation of how we can help you take your company to a higher level.