In-House Vs. Outsourcing: A Process for Analysis

Jul 19, 2013

It’s a question every company faces with any new initiative or strategy shift that may require new or different skills and resources: Should we keep it in-house or are we better off paying someone else to do it? Sometimes arriving at an answer doesn’t take more than two seconds of thought. Other times, more due diligence is called for, and that’s what we’re going to examine in today’s post. I think there are four areas of analysis businesses need to consider when deciding whether or not to keep work in-house or look outside the company: core competencies, personnel, other resources (equipment, machinery, software, etc…) and financial impact/cost.

Core competencies
The first question you need to answer (aside from the main question of this post) ties directly back to the core competencies of your company. Is the new work or initiative you are considering in line with your core business competencies? To put it another way, will it divert the focus of your business and your people away from what they do best? To use an example on an individual scale, it doesn’t make sense for a sales person to spend time designing and building his or her own email marketing tool. That’s time spent not working leads, and no matter how great it would be to have an email marketing program built to 100% custom-fit specifications, it’s just not worth the effort with so many other viable options on the market. That example segues nicely into our second area of analysis…

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Tags: Blog, printing, human resources, technology, core competencies, personnel, marketing systems

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