As a new business owner, you may be hearing quite a few phrases being tossed around. While some of these will be familiar to you, quite a few won’t.

That could lead to some confusion. Outsourcing is one of the more notable parts of this. It can be an appealing process to be involved in, as it can benefit your company in several ways.

You could be confused about what it entails, however. How can outsourcing affect your business? It’ll impact it in several ways.

While many of these will be positive, there could also be some negatives.

What Is Outsourcing?

A common business practice, outsourcing entails hiring third-party companies to perform specific tasks or duties for you. These can range from manufacturing to marketing, among other things.

The person or company doing this work is an independent contractor. As a business practice, it’s been commonly used since the 1990s, although it’s become increasingly prominent in recent years.

That’s primarily been driven by the efficacy of the process. It can offer quite a few benefits, especially when you work with the right firm.

Types Of Outsourcing

Outsourcing can be a relatively broad term. It’s used to refer to quite a few things. There are a few types of outsourcing that you might need to be aware of.

You’re more likely to come across some of them more than others. These include:

  •       Financial Services: Hiring a professional accountant Melbourne is one of the more common types of outsourcing you’ll come across. Payroll, taxes, and similar duties are typically delivered with these.
  •       Managed Service Providers: If you have specific IT needs, then you’ll need to work with a managed service provider. These can work remotely, although they’ll often have to visit your premises.
  •       Customer Service Support: Though one of the more surprising types of outsourcing, customer service support is becoming increasingly popular. That’s especially true of online companies.

You can also use multiple other types of outsourced professionals. These span marketing and search engine optimisation to receptionists and web developers, and much more.

Taking advantage of these can offer numerous benefits, although they’ll also have their drawbacks.

How Can Outsourcing Affect Your Business? Pros & Cons


Outsourcing offers multiple benefits, many of which can be felt across your business. Perhaps the most obvious is the cost savings you could see.

That’s typically seen when compared to hiring a traditional employee. While there’ll be a cost associated with an outsourced agency, you wouldn’t need to worry about insurance and other expenses.

The time-saving aspect of outsourcing is another benefit. By freeing up time by not needing to perform certain tasks, you and your employees can focus on other areas. In turn, that could make the business more efficient and productive.

You’ll also have access to experts by taking this approach. These agencies are specialists in their fields. As a result, you can rest assured that things will be done to a high standard.


While outsourcing offers many benefits, there are also some drawbacks. You’ll need to know what these are before making the decision to outsource.

One of the more notable is that there could be a security risk. Overseeing your company’s security will be easy, as you’ll be in control of this.

That wouldn’t be the case with third parties, however. While they’ll have security measures in place, you wouldn’t have any control over this.

Given that you’re trusting them with some key information, that could be a risk. There’s also a sacrifice in quality control with outsourcing.

You’ll be less able to monitor tasks as they happen, which could impact overall production. You’ll see this quite significantly with products more than services.

How Can Outsourcing Affect Your Business? Wrapping Up

It’s not uncommon to wonder, ‘how can outsourcing affect your business?’ While that can vary from company to company, there’ll be many similarities.

Some of the more notable things you should expect are:

  •   * Increased productivity and efficiency.
  •   * Lower costs.
  •   * Being able to use experts in their field.

That doesn’t mean that there wouldn’t be drawbacks, however. You’ll need to keep these in mind before outsourcing any duties.

You could find that the benefits often outweigh these. If you do, make sure you hire the right company for you. It’ll ensure that you see all of the benefits of outsourcing.