Triage your tasks

A guide on how to delegate your workload between in-house and outsourced talent

Outsourcing certain tasks and processes to experts is a good way for businesses to save money and increase agility. Companies like Google, Facebook, Nike, and LinkedIn are recognizing the importance of incorporating flexible teams into their workforce. At least 66% of US companies are outsourcing parts of their business to third-party providers, and a 2022 research report shows that trend is expected to go up, as experts project the outsourcing world to grow from a $241.7 billion industry in 2021 to a whopping $512.4 billion sector in 2030. So how do you know what you should be handing over to a freelancer? In this guide, we’ll break down when you should keep a project in-house and when you should outsource it.

Step 1: Set up your goals

Be clear about your goals and how they impact different metrics. Some objectives you might have:


- Cut back on operating expenses: If so, by how much?


- Grow your company without extra spending. What are the predicted growth rates compared to the additional costs?


- Improve efficiency without raising prices. What kind of growth rate are you after?


- Free up time. How many extra hours would you like to devote to other activities?

Step 2: List the tasks you plan to outsource

There are many things you might contract out. The two functions that small firms most frequently outsource are accounting and information technology. By outsourcing your back office functions, you can tap into the expertise of top talent in those fields, rather than creating full-time positions where you don’t need to.

Step 3: Make a decision-making matrix

Rank each activity based on its strategic and operational importance. Your company's competitive edge comes from strategically crucial areas. They could make your company unique and provide a competitive advantage in the marketplace. Operational tasks help your business run smoothly. On the other hand, if they’re not done correctly, they can cause disruption in the daily flow of operations.


Quadrant 1. Find a strategic partner

These activities are strategically vital but not critical for daily operations. When you’re looking to get fresh and creative ideas to update your strategy, outsourcing is a great way to bring in new perspectives.


Example: You might consider working with branding and marketing consultants to help you develop new brand guidelines or campaigns.


Quadrant 2: Retain in-house

These activities require the skills, knowledge, and abilities that make you unique in comparison with other businesses. They differentiate your company from competitors, making them more sensitive than other tasks because they can't always be controlled or need more attention when difficulty arises. They may also include proprietary information that you don’t want to share with people outside of your organization.


Example: For your e-commerce business, this could be manufacturing a product you are well known for. For an IT startup, it might be an aspect of the core technology.


Quadrant 3: Eliminate

If you or your employees are spending time on tasks that do not add value to the company from a strategic perspective, it might be worth considering getting rid of these activities or automating them when possible. Some companies opt for business automation and AI software to reduce costs but still maintain quality service.


Quadrant 4: Outsource

These are non-unique day-to-day operations needed for business to run smoothly.


Example: Processing orders, creating a logo or designing a website, making sales calls, or handling payroll. All these roles can be outsourced to designers, remote sales managers, HR managers, virtual assistants, and more.

Step 4: Identify potential freelancers

When it comes time to finding a freelancer, don't just go with the first option that pops up on your search engine results page. Gather as many details about each potential candidate's services and fees before making a decision or committing to any work.

Step 5: Compare outsourced vs. in-house process costs

Before moving forward with any “build or buy” decision, think about how it will impact your bottom line.


Outsourcing brings obvious financial benefits. According to the US Small Business Association, the real cost of an in-house employee is typically 1.25 to 1.4 times more than that employee's actual salary, because you’ll be paying for their added payroll benefits. So it’s often more cost-efficient to hire a freelancer instead. Think about how much you can save by outsourcing, and weigh that against any risks it might add. Will you need to share proprietary information with the freelancer? In cases like that, hiring a full-time employee may still be more beneficial.


Now that you’ve gone through these steps, you should have a clear picture of what tasks to keep within your core team and what projects you can hand over to freelancers.


Ready to start creating a more flexible team? Search for the right freelancers here, or see how a Success manager can help you find the right talent for your team.


(Speaking of all the good that can come out of outsourcing, this piece was created with the help of freelancer @marthadata)

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