Strategies for Growing Your Business Through Outsourcing

Oct 20, 2021 11 Min Read
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There are many benefits to a business when it outsources a process!

Outsourcing is the process by which a company transfers part of its business to an outside company. There are many benefits to a business when it outsources a process. Some of these benefits include:

  • Improved performance.
  • Reduced production costs.
  • Improved efficiency.


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These benefits can help you build a successful business that can grow into something even bigger.

How to go about outsourcing tasks?

There are several ways to outsource tasks. The first way is to hire someone online (a freelancer) who can work directly for your business under your instruction. However, it's essential to ensure a clear and legally sound working relationship when bringing an external professional on board. This is where a 'Consultancy agreement template' becomes invaluable. This template outlines the terms and conditions of the consulting arrangement, including responsibilities, payment terms, confidentiality agreements, and other important details.

The second way to outsource tasks is by hiring someone locally, but this requires managing them yourself. You might want to hire them temporarily or permanently (For example, hiring a cleaning company). You will need to decide what kind of relationship you want with the person and then communicate that decision.

It might look like a simple process, but it doesn’t end there. There are certain things you need to do when you outsource your business to other parties, be it an individual, a team, or a company. It’s important for you to communicate with the outsourced party about the decision your company has made to outsource certain tasks to other parties. It is also important for you to let the other parties know the specific tasks they need to work on and also for how long you need them to stay working with your company.

Transparency is also an important thing you need to communicate with your outsourced parties. Hide nothing from them regarding what you expect them to do, and it’s also important for you to discuss the payment you will offer to them after completing their tasks. This is to avoid any confusion or misunderstanding later on, as it might cause various problems with your company. 

Read more: Importance of Transparent Leadership

Be sure to let the outsourced parties know their responsibilities and write the important points on the contract with clear language so as not to cause them any problem in understanding it. Also, don’t put some hidden clauses that might give the outsourced parties any disadvantages that they might not want to deal with.

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The last way to outsource tasks is by hiring an independent contractor. This person works for themselves but can offer their services on a contractual basis to your business. Hire them through a contract or by hiring them directly.

How to identify the tasks you want to outsource?

One way to identify the tasks you want to outsource is to list all the tasks you do within your business. First, pick one task and then take it apart step by step. You should ask yourself if there are any steps that can be done by someone else - either online or locally. If so, take note of them and list them. Once you have listed the steps to perform that task, then list all the people you currently employ and who could do each of these steps.

However, it is worth mentioning that you should resort to outsourcing only when you have maxed out the resources that you have, which at this point you need to expand on tapping into other resources. Your employees are the most valuable resources you have in your company. You might need to consider hiring an outside company only after you have your employees’ hands full with the tasks that you give to them. Only then should you add more to your company’s workforce with outsourcing. 

By maxing out the resources you have, it doesn’t mean that you need to burden your employees with too many tasks that they can’t handle. Be fair in giving the assignments to your employees, and then if there are still some tasks left to do, you can contact any outsourced parties to help you with the task completion. Give your employees enough tasks they can work on first, and then you can opt to outsource the rest of the tasks to the outside companies or parties. It will be more cost effective for your business.

How to get good results through outsourcing?

Once you have decided on your business tasks, it is time to outsource them. Just make sure you follow these guidelines to get the most out of outsourcing.

This may interest you: Effective Vendor Management

Remember, it is important for you to understand the big goal behind your outsourcing plan. It is to complete your business tasks as efficiently as possible. Outsourcing your business tasks to the outside parties should give you more benefits than the costs you are paying for them. You also want it to be cost effective, and you want it to deliver the results you need for your business. Otherwise, you’re just wasting your time, money, and resources by doing this.

Determine if outsourcing is a good fit for your business and goals

Outsourcing can be an incredibly effective way to grow your business. Still, before you jump at the first offer for outsourcing services that you receive, it is essential to take some time to determine whether it will be a good fit for your company. One crucial aspect to consider is the outsourcing team's quality and ability to integrate seamlessly with your existing operations. Nearshore staff augmentation services can be a practical solution, offering skilled professionals who not only possess the necessary expertise but can also align with your company's values and culture.

For example, while outsourcing can dramatically increase profitability in many businesses, some industries shouldn't attempt to outsource any type of work, such as companies that handle fiduciary-related issues.

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Before you can choose the right outsourcing provider for your company, you must first take some time to determine if it is the right choice for your business, given its specific goals and what it wants to accomplish.

Supplementary reading: Starting Them SMART: Setting Goals The Proper Way

It’s also important to know that this is not a simple matter of adding more revenues to your business. Yes, you will need to hire the outsourcing parties suitable for your business needs, so that you can accomplish your project in time, and thus earning more money for your business. But your orientation in hiring the outsourcing provider shouldn’t be about money. It’s even more important to hire the outsourcing service provider to help your business improve in some ways. You need to hire them with the mindset to provide better products and services for your clients and customers, not just to earn as much profit as possible. 

This is the reason it’s important for you to determine the needs of your business and choose between different outsourcing services that fit your business more. You need the outsourcing providers to give your business some added values, so your business can grow along with them. With this in mind, money will just flow more to your business with no need for you to stress it out.

Build out your team with reputable, trustworthy outsourcers

Once you have determined that outsourcing is the right choice for your company, it's time to begin building your network of outsourced service providers.

Read more: Worthy Of Trust?

When building out your team of outsourcers, the most important thing you should look for in each provider is whether they are reputable and trustworthy. After all, if you cannot trust the person or persons taking care of the most important aspects of your business, how can you expect them to be able to grow your company?

This is the reason you need to be very careful about choosing your outsourcing partners. These third-party service providers will handle some of your business’ most important tasks, and often, you will also hand them with your business’ sensitive information. Thus, you can’t just pick any outsourcing parties you can find on the market, doing no research about them beforehand. It is important that the outsourcing partners you hire are trustworthy, reliable, and reputable. All these characteristics need to exist all at once, and you need to expect them to do so.

It is very important for your business to state what you expect from the outsourcing service providers regarding how they will handle your business tasks, how they can keep your business’ confidential information, and the consequences that might happen when the outsourcing partners commit any fraud and breach any of the contract agreement. You need to state these points in your contract with transparency and clearness, as not to cause any confusion for both parties. You might also need to consider performing the background check for any potential candidates to hire for your company.

Prioritise outsourcing providers based on their ability to grow your company

Pick the outsourcing company that can help your business grow and expand. This is the primary characteristic of the outsourcing partners to hire for your company. You need to let the outsourcing candidates know about their responsibilities and how they need to complete their tasks. Again, you need to use a clear language in your contract or briefing to avoid any kind of misunderstanding later on. Also, you need to explain to them about the goals of the project and how you expect both the employees and outsourcing partners to accomplish the goals. It’s also important for you to let them know that both your employees and outsourcing partners need to make their best effort to reach the project’s goals within the deadline.

Once you have established a strong team of reputable outsourcers, it is time for you to begin putting them to work to help you grow your company.

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While they may all be capable of handling the various tasks that need to be done, not every outsourced provider will be able to contribute equally when it comes to helping your company reach its goals and succeed. Because of this fact, you need to take some time to prioritise your outsourced providers based on how well they can grow your company and expand its reach. For example, only outsource graphic design tasks to providers who are capable of providing high-quality designs.

Create a detailed job description with specifications, expectations, and timelines

Another important point you need to keep in mind when you plan to outsource your work to third parties is to be as transparent as possible in the way you describe the job, your expectations, and also the deadline you expect the job to get done. It’s also important for you to remind your employees about their responsibilities and what they need to achieve during the project’s timeline. Remember, you will do it for the benefit of your business, so that you won’t face any problems later and end up wasting your valuable time and resources on fixing them.

Before you even begin to post a job listing on the forums or reach out to potential providers, you need to take some time and create a detailed job description of exactly what your outsourced provider will be doing. While this may seem like a no-brainer, many people skip this step and end up frustrated with their new outsourcer because they cannot meet their needs.

Don't be afraid to post additional information but keep it short and simple so that busy outsourcers can quickly read through your job posting and determine whether they are capable of taking on the project for you.

Also, it is necessary for you to know about the competency of your outsourced candidates, so you know what to expect from them. Remember, each person will offer you unique skills and capabilities, and if you don’t know their exact competencies, then it will be difficult for you to distribute your business tasks to each outsourced person you have in your project. Thus, during the hiring process for your outsourcing partners, you need the candidates to answer your questions with honesty, as you need to gauge the exact value they can bring to the table.

Also, asking situational questions for each candidate can help you understand more about them, how they will handle the project in such situations, and how your business can benefit from their work. For the candidates, situational questions can help them get a sense of your business operations and what they can expect from working with you. You can decide if you would like to hire them after careful examinations of various aspects.

Stay in touch with your outsourced providers to ensure satisfaction

You must take some time to check in with them periodically to ensure they are meeting deadlines and remaining budget-conscious while completing tasks.

Review outsourcing providers regularly.

Lastly, just because you've hired an outsourced provider to take care of a specific task for you doesn't mean that you should stop checking in on them or asking them to do more. Once you have brought a provider on, it is important to keep them under review and continue asking them if they can take your company's growth a step further.

As you work with a particular outsourced provider over time, be sure to watch how well they can grow your company so that you have real data when it comes time for you to decide whether to continue working with them.

Monitor progress closely to ensure quality work is being completed on time. Poor quality work or missed deadlines can mean lost sales, bad reviews, and dissatisfied customers. If your outsourced provider is a good fit for your company, they will be happy to help you grow your business and have no problem meeting any timelines or deadlines you set together.


With these strategies for growing your business through the art of outsourcing, you should have everything you need to begin building up a reliable network of outsourced service providers that can help you take your business to the next level. You can also capably assert your authority by monitoring the progress of the projects and making necessary changes. If you have trouble outsourcing, reading other blogs in Leaderonomics can help you get the right outsourcing guidance.

Ancillary reading: 4 Constraints Preventing Your Organisation From Becoming World-Class

With the right outsourcing method, you can also grow and expand your business through the art of outsourcing. It might take a lot of time and effort for you to hone your outsourcing skills, but it will be worth it for your business if you can do it right.

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This article is published by the editors of with the consent of the guest author. 


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