When scaling up, many companies are faced with the daunting task of whether to outsource or not; and if outsourcing is the answer, when it's the right time to? To take such decision, ask yourself these questions...

What do you need to outsource?

In order to answer such question, it's important to prioritize which tasks can be considered for outsourcing. In a perfect world, you would be able to outsource all of your processes and make your life easier while still gaining a reasonable profit, but; in the real world; such approach won't be as cost efficient as you think it is. By understanding what your immediate priority is, you'll willingly be able to choose whether outsource will help your company achieve its vision and mission or not. Now you may ask your second question.

What do you want to accomplish by outsourcing?

When asking such question, it's important to keep a "Now" frame; what do you need to accomplish via outsourcing right now? Which steps do I need to take in order to help my company moving forward? For example, "If your goals are to expand your market and generate more revenue", you should identify which task will help you progress such goals effectively (Customer Service, Chat Support, Tele-Marketing, Data Entry, RPO, ..etc.), then choose the right place for your task and proceed. If your main goal of outsourcing is to reduce your own workflow, then you may want to rethink your outsourcing strategy. At the end; outsourcing needs to help you move toward an objective that will help your business to succeed and not just decrease your workload.

How do I know that it's the right time financially?

Cash flow is obviously a necessity for any business contemplating the option of outsourcing. In certain situations, businesses will use credit to pay for outsourcing without first establishing any type of cash flow. This is without a doubt; the riskiest way to outsource. The preferred approach is that the company should generate cash flow, and then start to use that cash to help them make more money via outsourcing partners.

Every company is unique in its own procedures and processes. This means that the right time to outsource can be different for each company. However, by asking these 3 simple questions and taking all the factors above into consideration, each company should know whether now is the time to outsource or not.