Outsourcing vs In-House – Which is Right for You? 

Are you struggling to decide between outsourcing and keeping work in-house?  

It’s a common dilemma for businesses that need more resources but don’t want to overburden their team.  

Perhaps you’ve invested in a new software system like Unit4 ERP and realised your current staff doesn’t have the expertise to get it up and running.  

Outsourcing may be the answer, but where do you start? In this blog, we’ll explore the pros and cons of outsourcing versus in-house work, so you can make the right decision for your business. 

What is Outsourcing? 

Outsourcing is a process where you seek external resources to assist you in completing tasks or projects. 

This assistance can be provided by freelancers or agencies that specialise in a particular type of project or task. For instance, you could outsource your Unit4 software and IT management to a business such as Equinox Consulting.  

It’s a highly effective way to accomplish tasks efficiently! 

Pros and Cons of Outsourcing 

If you’re looking to streamline your business operations, outsourcing to a software company can be a smart move. Here are some benefits and drawbacks to consider before deciding: 

Pros  

Expert Knowledge 

With countless freelancers and agencies available, finding a contractor who specialises in your required service won’t be a challenge. 

You will often find that you can find experts who have in-depth, detailed knowledge which can far surpass your internal team.  

Consultants have acquired extensive experience and knowledge, ranging from successful techniques to potential obstacles. This guarantees that if any problems arise, they can promptly provide a solution. 

Create Ongoing Partnerships 

Working with a consultant doesn’t have to be a one-time thing. Depending on the nature of the project, you may require ongoing assistance even after it’s completed.  

When you collaborate with a consultant, you can establish a relationship of trust with the expert. This simplifies things when you encounter problems or have questions, as you already have someone to turn to!  

If you have similar projects in the future, your consultant will already be familiar with your business needs. 

Cost Effective 

Building an in-house team requires a significant investment of time. Each new team member requires a lengthy hiring process.  

Outsourcing work to another company can expedite the process of acquiring necessary resources. Many companies have found that by utilising consultants instead of hiring full-time employees, they can save thousands of pounds each week.  

While your in-house team may possess a broad range of knowledge, experts with specialised experience can provide valuable insights at a lower cost than recruiting new employees. 

At Equinox Consulting Ltd, we endeavour to become an extension of your internal team externally. Our goal is to collaborate closely with your team and external partners to gain a deep understanding of your business and work together to develop customised solutions. 
 

Cons 

Control 

If you decide to hire a contractor instead of an employee, it can be quite difficult to maintain the same level of control that you would have over an on-site worker. This is especially true if the contractor is working remotely or off-site. 

However, with clear communication and expectations set from the beginning, it is possible to successfully work with a contractor and achieve your desired outcome. 

Often businesses have a preconception that outside contractors don’t care as much about your business, but this is not the case for everyone. At Equinox, we give you the same care which we give our own business. This helps us to ensure you receive the best service possible with the correct care and consideration to ensure we work together seamlessly. 

Communication 

When outsourcing work to someone outside of your organisation, communication can be a major factor in the success of the project.  

One of the biggest potential drawbacks is the potential for miscommunication due to factors such as time zone differences, preferred methods of communication, and access to reliable internet.  

It’s important to ask questions upfront to ensure that you and the outsourced worker are on the same page when it comes to communication to avoid potential issues down the line. 

Equinox has the knowledge to understand and excel at working with a multitude of businesses. Geographical location is not a barrier. We have been involved in implementations and upgrades globally. 

Company Culture 

As a business owner, it’s easy to focus on the benefits of outsourcing, all without considering the impact it can have on your company. If you plan on outsourcing, you need to take steps to ensure that it doesn’t have a negative effect on company culture.  

A positive work culture leads to a higher level of productivity, so you don’t want to do anything to jeopardise this. Some of the ways outsourcing can negatively affect company culture include upsetting employees as they may feel they are being replaced; confusing employees who don’t understand why you are outsourcing tasks and adding challenges to the daily workflow of the company.  

When everyone is on the same page, outsourcing won’t harm company culture but can improve it by removing unnecessary employee stress and freeing up their time to handle their day-to-day tasks. 

Pros and Cons of Handling Projects In-House 

Are you considering handling your projects in-house instead of outsourcing to a software company? It’s important to carefully evaluate the potential benefits and drawbacks of this decision before making a choice that could impact your business efficiency: 

Pros 

Invest in Employees 

Each new project presents an opportunity to enhance the skills of your team. By collaborating with your in-house team, you can continue to build upon their foundation and achieve increasingly impressive outcomes.  

Investing additional time and resources into training your team is an option because many of them will remain with your company. This investment yields long-term benefits. 

However, with the responsibility placed on such few shoulders, the personnel factors that come along with any member of staff (annual leave, sickness, disciplinary. etc.) can become even more of an issue, with businesses leaving themselves vulnerable at being left short of cover and expertise in a critical area of the business at extremely short notice.  

Scheduling Flexibility 

When working with an in-house team, you can establish a set of shared working hours, regardless of whether your team works from an office or remotely.  

However, it’s worth noting that contractors and freelancers may not operate on a fixed schedule.  

This is something to discuss with staff and external contractors to decide what is the best option for everyone. 

Values 

When a project is handled internally, it serves as a reflection of your company’s values and ideals. With everyone invested in the project’s success, there is a strong sense of teamwork and collaboration.  

This often leads to team members being more willing to take on tasks outside of their usual expertise and think outside the box to come up with innovative solutions.  

The result is a project that not only meets the initial goals but also exceeds expectations. 

Cons 

Increased Cost 

In-house hiring can be a costly and long-term commitment. Instead, outsourcing tasks or projects for one or two projects can be more affordable.  

Contractors may have higher hourly rates, but they only charge for the time spent working on your project, without billing for administrative tasks, training or waiting for the next task.  

This option eliminates the obligation to provide 40 hours of work every week, making it a more cost-effective solution for companies faced with the decision to hire another team member or outsource work. 

At Equinox, we have several packages to offer our clients to ensure that your money is being well spent on the services which you need. To help you determine the best package for your business or customisable options, contact us today.  

Lower Expertise 

It’s important to recognise that your employees may not be experts in every area. There may be times when you don’t have the necessary in-house resources to successfully complete a project.  

Taking on a project that’s outside of your team’s expertise can be impractical and time-consuming. Not to mention, the resources you spend on learning something new could be better utilised elsewhere.  

To ensure successful outcomes for important projects, it can be wise to work with someone who has the relevant experience and expertise. 

Overworking Employees 

When managing a team, it’s important to keep in mind that everyone has a finite amount of time and energy.  

While you may have many important initiatives to prioritise, it’s crucial to recognise when certain tasks simply cannot be completed within the available resources.  

While asking your team to work overtime may seem like a solution, it’s important to remember that this can be both costly and detrimental to productivity in the long run.  

Instead, consider outsourcing certain tasks when necessary to maintain your team’s well-being and ensure sustained productivity. 

Outsourcing vs In-House: Summary 

Both outsourcing and in-house projects can be useful for different businesses depending on their individual size and needs. Completing projects can be challenging for most businesses, and outsourcing can be a helpful solution.  

Some businesses choose to implement a mixture of outsourcing and in-house by training a small selection of in-house employees who can then work alongside an agency to get their optimum results. We can even assist in training your employees to understand Unit4 ERP via our bespoke training videos and presentations. 

By outsourcing to Equinox Consulting, you can gain access to expert knowledge and long-term partnerships that can help you save money and alleviate stress.  

Our approach is very simple – we listen carefully to each client to ensure that we understand their requirements, and we clearly articulate how we will add value to each engagement without resorting to technical jargon.  

All of our services are designed to encourage client collaboration. Our consultants work closely with clients (PMOs) to understand their needs and develop solutions tailored to meet those needs.  

At Equinox, we understand what it takes to develop your software system and create an ongoing process to allow employees to use the system correctly, with appropriate training and the ability to remove any common pain points.  

Enable your Digital Future with Equinox  

With over 7+ years of experience and a team of highly skilled consultants, we offer a range of services to help your business grow and thrive. 

We believe in being honest and transparent throughout our communication so that both parties know exactly what is expected from each other. By doing this, Equinox and your business will be on the same page and working towards the same goals with these expectations in mind. 

From end-to-end IT solutions to enterprise resource planning (ERP), we’re here to provide comprehensive support for your organisation.  

If you’re looking for the best, most flexible consultancy, give us a call. We offer fast service and competitive prices to help your business systems remain up-to-date and applicable.    

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