Outsourcing operational tasks can allow you to focus on activities that generate profit.

As your business grows, there will inevitably be more work to do. But that doesn’t mean you need to handle it all on your own. Outsourcing can free up time and resources that allow you to put more effort into the core of your business. However, there are also some drawbacks to hiring outside help. Here’s what you need to consider when deciding if outsourcing is the smart move for your company.

Audit your time

Choose a typical week to keep a log of your time to see how you’re spending your day down to the minute. Then audit your activity to see how much time you devote to communications, managing, administrative tasks, etc. If you have employees, ask them to do the same.

How much time is spent on core activities?

Once you’ve recorded your time you can analyze your activity. If the majority of your time is not spent on core activities — those that generate profit — consider outsourcing.

Choosing what to outsource

Functions that are repetitive or require skills you don’t have in-house are ideal candidates for outsourcing. Common activities businesses outsource include accounting, payroll, marketing, IT management and administrative duties.

Pros and cons of outsourcing

On the plus side, outsourcing helps you gain efficiencies and flexibility, as well as access talent. Once outsourcing of a function is set up, things get done quickly.

The drawbacks to outsourcing include loss of control and giving a third-party access to sensitive information. Also, unexpected or hidden costs could raise expenses. While you and employees will do whatever it takes to get a job done, an outsourcing supplier only performs the activities spelled out in the contract; anything more will cost extra.

Making the decision

There’s much to weigh when it comes to outsourcing. Some companies only outsource things that are important for operations but are not of strategic importance.

You must also consider what makes your business unique. Activities that draw customers and employees to your organization are probably best left in-house

Consider Consumers for payroll

Did you know that Consumers has a partnership with BASIC, a third-party administrator, that  can help you with all your payroll needs? Learn more about Consumers payroll services, including ACH direct deposit, withholdings and disbursements.

 Do you have business banking questions? Contact our knowledgeable commercial loan officers online or call 800-991-2221. We’re also available to help in person at your local Consumers office.