When it comes to outsourcing a need your company has to another entity, there are several questions that will come to mind. However, the most important question of all will be: Is outsourcing this service right for my company? The following five points of interest will help you decide what’s best for your team.
Inexperience. Often the guidelines you’re required to comply with aren’t things you’d considered before. Being in third-party risk management, we run into potential clients all the time who have little to no experience aggregating data, measuring risk or simply handling vendor information. If your team struggles to grasp a new concept because they aren’t fit for that role, you’re already fighting an uphill battle.
Lack of knowledge. Similarly to inexperience, you may find yourself ill-equipped to tackle a heavy task, be it a rebrand, marketing campaign or managing 2000 vendors. An issue our own team has run into recently is where the responsibility falls on the shoulders of the wrong person, leaving the team crippled because the wrong person is handling a large position in the IT Department AND now the Vendor Compliance project (which is so new it doesn’t even have a “department” yet). We’ll touch on this a little more in #4, but rest assured that just because your IT guy knows how to use SharePoint and Excel does NOT mean they’re best equipped to facilitate vendor risk assessments for your company.
Overwhelming. This one is for all you small business owners! Shoutout to all you startup warriors out there waking up early, working in your pajamas all day (and late into the night) to make your dreams happen. Hopefully you were able to catch the interview with our CEO about how baby companies can change over the course of time and grow to much more than even you may think! Deadlines, conference calls, meetings, taking on new projects as soon as the finish line is in sight on various others and all the seemingly infinite tasks command your attention day in and day out. Sidebar: It’s really a miracle you even make it to what we at RedKnot call “cocktail hour”, where you’re able to mix up something delicious and celebrate killing your day. (I know, I’m rambling. But we’re on the brink of cocktail hour here at RedKnot HQ and I’m pretty jazzed. Enjoy a classic and pat yourself on the back. You look like you deserve it.) Finding the right fit for your company will allow you to rid yourself of an incredible burden so you can get back to doing what you do best and save you precious time, personnel (#4) and money (#5).
Personnel. Again, it can’t be stressed enough that an exhausted team isn’t an effective one. Imagine a rubber band. At a healthy level, a rubber band can stretch to support an incredible workload but when put under too much stress its limit is exceeded and it just snaps. When your team is stretched too far, not only is it difficult to succeed at a new task that adds more to the workload, but it also causes them to struggle with the seemingly menial, day-to-day tasks they were performing perfectly before. If you don’t have the personnel to complete your business as usual AND take on new projects, outsourcing may be the best move for your company.
Money. Money money money money MONEYYYYYY! Your financial resources are obviously an extremely important point of consideration when weighing the cost of hiring a new full-time employee with benefits, 401k and the whole nine yards versus hiring a firm or team on a contractual basis to run your program as needed (and for a fraction of the cost!). A final thought to consider: the amount of time it takes to onboard, train and release your fresh employee into the wild will be staggering in comparison to outsourcing to a company with a process already in place to hit the ground running as soon as pen meets paper.
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