Outsourcing for Your Business: 10 Factors You Need to Consider

Sometimes, day-to-day business functions can be taxing and repetitive. It is not uncommon for the repetition of work to make staff feel bored and more likely prone to error. This is why many companies, big or small, switch to outsourced business processes, like call center services, customer care services, accounting services, bookkeeping services, delivery services, etc. Some businesses outsource most functions while others only choose a handful, depending on budget and need.


When contemplating whether to outsource your business processes, it is important to perform a situational analysis to assess your needs and make a sound decision you won’t regret. Here are 10 factors you need to consider on whether to outsource business processes.

1) Think of Cost Savings

Outsourcing is supposed to aid your business by lessening operational costs. If you think that the amount of outsourcing you want for your business will only drain your pocket, you are better off not doing it. You must gauge whether these outsourced business services will save you capital in hiring employees and purchasing or renting equipment. Moreover, you should determine if outsourcing will save you time, as time is an asset you can also convert into money.

2) Check the Prices

Do your due diligence on companies that you will seek for outsourcing work. While making sure their prices fit your budget is important, do not go for the cheapest vendor! Noteworthy, the price often reflects the quality. Instead, compare prices of all the companies and determine the performance of each relative to their price. Also, take note of the benefits and extended services that certain companies will offer. For example, when you hire an accounting firm for your bookkeeping and financial statements, some teams go the extra mile and provide sound business advice grounded on ratios and indicators to aid in your decision-making. 

3) Assess Resources and Technology

Ask your prospective vendors about the technology and resources they will use to cater to your projects. First, take note if their software and equipment are up to date and reliable. Then, check if these are compatible with all your existing machinery. Otherwise, you may end up spending more on upgrades. Also, take note of human resources to see if they are well trained and capable of handling your requests.

4) Evaluate Promptness in Meeting Deadlines

Every business hinges on time. Any potential delays can result in lost opportunities and monetary loss. Therefore, it is important to check with a vendor’s project history to see if they are good at managing deadlines. Poor time management in the outsourced company will have a domino effect, and it will inevitably adversely impact your performance.

5) Choose Low Supervision

The reason you will be outsourcing in the first place is to get matters out of your hands. It is important to find a vendor who can produce quality standard work and good results independently. The vendor must be responsible enough that you won’t have to watch over them like a hawk and pester them into taking action; otherwise, you are better off doing things yourself.

6) Work With a Team That Lessen Liabilities

Outsourcing should be a way for you to lessen liabilities. For example, instead of taking a loan and buying your own commercial printer to make your packaging materials, you can outsource this task instead. Perform a thorough analysis and audit of your numbers to figure out if outsourcing will indeed lighten your load.

7) Vet the Trustworthiness of the Vendor

Before signing a deal with a vendor, first, check their credibility. Do they have the necessary certifications and licenses? How long have they been serving their niche? How do they fare against competitive consulting firms? Next, look into customer reviews about the firm, their system, safety practices, and the teams working there.

8) Get to Know the Leadership of the Outsourced Team

Everything rises and falls on leadership. Therefore, you want to ensure that the company you are working with is led by experienced team members. You will be at peace if your business functions are in the hands of professionals. If possible, try to seek out companies who share the same goals and values as yours. This will lessen any tension that may arise between the two companies because you follow the same company culture.

9) Read the Service Level Agreement

Service level agreements define the level of service you will be getting from a vendor. As such, you should ensure that all info written in the SLA is correct. Noteworthy, it is advised that you have a legal professional read your SLA and be present during its signing. Read the fine print so you won’t have any regrets.

10) Choose Good Communication Between Your Company and the Outsourced Company

 Whether your outsourced services are bought offshore or onshore, you must constantly communicate with the team. Likewise, the vendors should keep open lines of communication with you and should answer any questions or requests you may have.


If you need assistance with accounting, bookkeeping, auditing, payroll services, or business registration, don’t hesitate to give our team a call. Apart from doing the usual financial checks for your business, we can also help with tax compliance and filing returns with the BIR. Call us for a free 30-minute consultation.