Reactive vs. Proactive Outsourcing: Should Outsourcing Be Included in a Business Plan from the Start?

There are several reasons you might choose to outsource work for your business.

Some may choose outsourcing as a reactionary solution, while others may have proactive reasons for incorporating it into their business strategies. As the economy shifts, so too may a business's reasons for outsourcing. According to our State of Outsourcing survey:

• 78% of industry leaders indicated that the economic environment significantly influenced their outsourcing decisions, with a third noting a major impact.
• 48% reported making proactive outsourcing decisions, and those respondents were less likely to say that economic changes impacted their decision-making.

What's the difference between reactive and proactive outsourcing? Let's explore each approach.

Reactive Outsourcing: The Quick Fix

Often framed as a "break the glass" solution, this approach to outsourcing is implemented in response to:

• Higher-than-expected sales
• Sudden surges in platform usage
• Faster-than-expected customer acquisition
• A need to slow cash burn and/or drive higher profitability

What are the benefits?

When things go south and need to be turned around fast, boosting your team's capacity can provide a quick-fix with minimal disruption. Also, there's still a potential to scale up.

What are the challenges?

You may be able to scale, but it won't be for long-term success. Additionally, you'll risk a short onboarding ramp, compromise quality, and lack a customized approach to technology that misaligns with your overall business strategy.

Proactive Inclusion of Outsourcing in Business Strategies

By strategically integrating your outsourcing partner at the beginning, you align your business operations with an evolving landscape and shift into a long-term solution that delivers value.

What are the benefits?

If outsourcing is baked into your business strategy, you'll have time to select the right partner who understands your goals and collaborates with you to react to emerging challenges.

What are the challenges?

Not all of your in-house employees will love the idea of outsourcing, and shifting demands or market conditions may render outsourcing inefficient for your business needs.

Ready to start your outsourcing journey? ?? Learn the tips you need to implement it as part of your long-term plan strategically.