In-House vs Outsourced: Which Should You Choose for Your Business?

In-House vs Outsourced: Which Should You Choose for Your Business?

The modern workplace has completely evolved. Businesses commonly allow flexible working schedules and employ remote workers depending on their needs. There are two distinct workforce groups in the world today. These are the in-house team and outsourced service workers. The in-house team is made up of traditional employees while the outsourced service workers comprise talents from different parts of the world. An outsourcing company Australia wide has a large manpower pool of these online talents that work remotely.  Now, here is the big question. Between in-house and outsourced employees, which should you choose for your business?

What is an In-House Team?

An in-house team refers to employees or staff directly employed by the company. They may either work in a physical office housed by the business itself. In today’s scenario, some companies allow their in-house team to work remotely. The in-house team performs necessary work for the company using the company’s assets. With an in-house team, business owners have higher control over the processes. Data is much secured because it is confined within company premises. It is also easier to implement any changes in the process for the in-house team. This is because of their familiarity with the internal process and company culture.

What are Outsourced Services?

Outsourcing is hiring an outside employee or third-party vendor to perform standard business functions and services. The most obvious benefit of such a workforce group is cutting labour costs. Outsourced services are typically paid by the hours they rendered and do not enjoy the benefits that an in-house team is entitled to. Outsourced services can free up key positions in the in-house team from less critical and redundant tasks. Thus, they can better focus on the core aspects of the business.

In-House vs. Outsourced Services

Here’s a comparison rundown of an in-house team and outsourced services.

Cost

Building an in-house team of experts means funding employee benefits, salaries, and training. While outsourced services allow businesses to have access to a pool of talents that no longer need training, are paid by the hours, and do not have benefits similar to your in-house time. When it comes to cost, outsourced services are cheaper than hiring an in-house team.

Dedication

Your in-house team is more dedicated to the business being attached to it emotionally and physically. Their main focus is the business because they depend on it as their main career path and income source. Unlike outsourced services who may also be serving other clients. The relationship is typically business focus, so they lack understanding of the company’s mission and vision. 

Expertise and Skills

It may take time to build expertise and skills on an in-house team. They will need to undergo intensive training and learn the skills hands-on while performing their basic function. This is the reason why seniority is sometimes a criterion for in-house promotion. Experience makes an in-house employee swell-equipped with the knowledge of internal processes. On the other side, outsourced services have already built a niche of expertise and skills. Their experience with other clients equipped them with the maturity of handling critical tasks. Besides, there is no need for intensive training because they have typically gone through such resources online. When it comes to expertise and skills, outsourced services have a larger edge over an in-house team.

Productivity

An in-house team is productive within the typical 8-hr work schedule. But there are times when breaks, co-worker interactions, and office meetings take much of their time. There are also cases where work is minimal during lean months. Yet, they are fully paid even with a decrease in the work output. Outsourced services are typically paid by the time they are rendered a service. They commonly complete a task ahead of the timeline because of automation tools and simpler processes. As such, they tend to be more productive than the in-house team.

The Bottom Line

Businesses need both an in-house and outsourced team. Certain operational processes need to be done within office premises. Outsourced services commonly perform less critical functions for the business. This workforce group helps the in-house team to free up their time and dedicate it to scaling the business.