So, what do you outsource? 

The easiest functions to outsource are the non-business related and ancillary functions.  Chances are, you’re already outsourcing these functions.  They include cleaning, catering, facilities management and maintenance, deliveries, installation, after sale services, etc. These are services that either do not directly involve interaction with your clients or that are complimentary services clearly provided by another company that you coordinate for the client (such as installation or after sale service).  For ancillary services, there is a clear and visible separation between what you are providing the client and what the other company is providing the client.

Non-strategic and support functions are the next services that most businesses look to outsource.  This is where the more difficult decisions come in because you may have staff working in these functions that would be eliminated.  However, by outsourcing these functions, you can usually get greater expertise than what you can afford to hire directly because of the economies of scale the outsourced company experiences. 

Functions that could be outsourced include:

IT functions - Most IT functions can be outsourced - from network management to project work, website development and data warehousing. You may benefit from the latest technology and software upgrades without having to invest in expensive systems or keep up with industry trends.

Business Processes and HR - Outsourcing activities such as recruitment, payroll and secretarial services gives you access to specialist skills, but you only pay when you need to use them.

Finance - You already outsource auditing, so why not do the same with your entire accounting function, including bookkeeping, tax management and invoicing?

Sales and Marketing - Many organisations use a consultant or an agency to handle marketing communications - smaller businesses, or those in specialised markets - can also outsource sales to specialist agencies.

Health and Safety - There are consultants who specialise in health and safety compliance tasks. They may be able to ensure you meet all the requirements, including those for complex risks, more cost-effectively than you can.

As you look at outsourcing these more complex functions, one important issue you should consider is the hiring of a consultant to determine the true feasibility of outsourcing any of your important business functions that are already being handled in-house.  We previously discussed the cost-benefit analysis that has to be done before deciding to outsource and we were only able to touch on the most common questions that need answered.  A professional consultant will save you time, money and pain by helping you be certain that the decision you are making is the right one.