What can’t be outsourced?

Outsourcing the right thing to the right vendor can make you a leaner and better operating business. But an important question to ask here is what can and cannot be outsourced? Call centers, software development, design, testing, advertising…well it depends. Each one of these can be outsourced, but that depends on what you want your brand to be known about.

Whatever you want your brand to be known about cannot be outsourced. If you want to make your brand to be known about customer service, you cannot outsource customer service. If you want your brand to be known about great design, you got to have design in-house. If creative advertisements is what your brand is all about, outsource something else and keep that in-house.

We outsource something for a couple of reasons. First, to save cost. If your brand is known for something, you don’t have to (and you should not try to) aggressively save cost in that domain. There are plenty of opportunities to cut costs or eliminate cost centers which can be better managed by outsourcing. This brings us to the second reason for outsourcing something. It’s to use the expertise of the company to which you are outsourcing the job. Now applying it back to what you are outsourcing, if you want your brand to be known about something, you are better off developing expertise in that domain as compared to outsourcing it. On the other hand, if you have a back office, it is a good idea to outsource it to someone for whom it is the front office and leverage their expertise.

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