7 Questions to Ask before deciding to In-source or Outsource any Project
Each organization is competing with the other to grab a higher mindshare and product recall in the market. In Fact the consumer behaviours are unpredictable. Therefore, it is hard for the organization to source the best tools and resources to satisfy and retain the consumer, keeping competition at bay. Indeed, a tough call most organizations make in today’s ever-changing world.
Further, consumers are known to be fickle-minded and do get influenced by many factors. Therefore, it’s not only enough to conduct market research to analyze and predict consumer behaviour, purchasing habits, and patterns, but more importantly, to evolve as an organization that can consider the dynamic consumer perceptions and buying habits. Market research and data analysis can make organizational structural changes, innovation in product development, build adaptive pricing models and cost analysis, expand distribution channels, design creative marketing plans and exploit social marketing tools.
Insourcing vs Outsourcing, Which is better for Organizations?
One option is to have in-house teams that do all this and more, using the most effective platforms, algorithms and processes. Another option is to have a team coordinating with multiple external partners who are specialists in these areas. In today’s constantly changing world, selecting the correct choice and then deciding the way forward is a challenge all organizations face continuously. Some would say it is best to do what one does best, become specialists in a few areas, and let others work in rest areas. And some would argue that given the threat to privacy and databases, it is best to gather all the experts under one roof.
Therefore, the only pragmatic way forward is to have a mix of internal and external experts. ROI on every dollar spent is one way to arrive at the best course of action that each organization can take, being both competitive and relevant to the consumer base at all times. That would involve evaluating all outsourcing and in-house options and choosing the most cost-effective one. Since this decision could be critical to all future products, pricing, distribution channel, positioning, image, staffing and more, carefully selecting outsourced experts is crucial. Finding external partners who are domain experts and share the same business philosophy is a huge bonus.
Leveraging tasks for Internal & External teams
Assigning internal resources and training them constantly in the latest skills and techniques to get better at reading the mind of its consumer is a significant investment for most organizations. In contrast, the outsourced partner organizations have specialized teams exposed to new trends both locally and globally and are continuously given training in these techniques. These are typically smaller with high domain knowledge so that they can deliver customized results at lower costs. Though cost is a significant benefit of using such specialist agencies, it cannot be the only reason to choose external partners.
Changing business situations warrants creative approaches, including one while selecting an external partner. No doubt the partner organizations are evolving and growing with the times and adapting to the same changes. The same external partners who add value to the organization today could become irrelevant tomorrow. So what or who is a right fit for the organization today may be completely wrong another day.
By answering some of the questions raised below, an organization has a better chance at arriving at what works best for it to be both competitive and cost-effective:
- How specialized in the area of expertise?
- Would we be able to find and hire the most experienced person/ team for the job?
- Do we have access to the right tools and platforms to execute?
- What would be the delivery timeline? And how many iterations would be required to have the desired output?
- Do we know what the final result would be?
- How sensitive is the data/ information/ project from a data-sharing point of view?
- What will be the cost overlay for effectively delivering the job?
Answering these questions can help every organization reach the right mix of internal and external experts and decide what works best given the business environment, budget, and long-term and short-term goals.