Picture of Daven Michaels

Daven Michaels

New York Times Bestselling Author, 30-year business veteran, and Executive Chairman of CurrentC Group.

There is one main goal that most, if not all, businesses share: growth. There are many ways to achieve growth, but one related question is: Should businesses outsource their operations or perform them in house in order to grow?

Outsourcing is defined by the Balance as “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources.” There are differing opinions on this.

Why Outsource?

There are various reasons to outsource, including reducing costs, improving company focus, and making sure internal resources are allocated to purposes fundamental to the business. There are also requirements to fulfill for successful outsourcing.

The fundamental principle is to ensure that activities carried out in- house are adding value to the business and that activities to be outsourced cannot be performed by your existing employees. So, to successfully outsource, go through some research and make sure you have these things:

  • Clear company goals
  • A clear plan for the business
  • Clear selection of the people to outsource to
  • Planning of ways to keep in touch with the contractors
  • Clear and properly written contacts
  • Outsourcing: The Practical Choice?

Entrepreneur takes a pragmatic view of this question. Outsourcing just means more efficiency. Have you ever heard the expression “jack of all trades, master of none?” Well, according to the American Psychological Association, managing multiple tasks at one time–in other words, not outsourcing certain business functions–could lead to a 40 percent drop in productivity.

This means that outsourcing will lead to more efficiency and higher productivity, not a lack of control over your business. Outsourcing functions like content marketing to increase awareness of your business, bookkeeping, payroll and admin is recommended by many business people and can help lead to more growth. Also, outsourcing based on your company’s areas of development will lead to a more vibrant and successful company, and can even save your company money.

Outsourcing can be useful for solving the operational issues of companies of all sizes. Outsourcing non-core business functions will allow your business to focus on its core modus operandi. What’s more, outsourcing will theoretically allow you to seek the brightest and best employees without geographical boundaries and time constraints.

Outsourcing to Eastern Europe is a growing trend due to the accessibility, excellent work ethics and quality IT workforce there. Entrepreneurs and business owners are opting, every day more and more, for Eastern Europe as an outsourcing destination.

A fundamental reason for outsourcing is, of course, to cut costs. Another reason for outsourcing is that it can improve your company’s flexibility and innovation, allowing you access to ideas at the forefront of business. Finally, outsourcing will allow you to seek partnerships with those who are at the forefront of technological innovation, meaning that your company will be at the cutting edge.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.


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