Ask Christa! Business Basics Series (5/6) - What is Outsourcing and Should All Businesses Do It? (S3E30)

Summary

In this episode of Ask Christa!, Christa Dhimo explores the concept of outsourcing, explaining that every business engages in outsourcing to some extent, emphasizing the importance of leveraging outsourcing to enable businesses to focus on their core competencies: what they do best. The key to outsourcing is being intentional about what stays in-house and what gets handed off. She shares relatable examples from areas like logistics and PR, and walks the listeners through how to decide what to outsource and when, and offers additional guidance on making informed outsourcing decisions based on business objectives and risk assessment. As with all episodes, Christa wraps up the episode by providing additional resources for further learning on the topic.

Key Takeaways

·       All businesses outsource and should outsource.

·       Outsourcing has a different meaning for different people.

·       Outsourcing allows companies to better focus on their core competencies.

·       Outsourcing decisions should consider both short-term and long-term needs.

·       Situational needs often drive outsourcing decisions.

·       Examples of common outsourcing is Public Relations and Logistics.

·       Evaluate the benefits versus risks of outsourcing.

·       Short-term and long-term perspectives are essential in outsourcing.

·       Resources are available to understand outsourcing better.

·       Resources are available for deeper insights into outsourcing.

Additional Resources

Buia, C., Heyning, C., Lander, F., & Nearmap/Getty Images. (2018). The risks and rewards of outsourcing [Journal-article]. https://www.mckinsey.com/~/media/McKinsey/Industries/Metals%20and%20Mining/Our%20Insights/The%20risks%20and%20rewards%20of%20outsourcing/The-risks-and-rewards-of-outsourcing.pdf

Fulfillrite. (2024, June 3). What is a 3PL? Third-Party Logistics Explained Simply & Clearly. [Video]. YouTube. https://www.youtube.com/watch?v=zFiyLkhFHLA

Shea, K. (2023, April 11). What You Need to Know About Doing Your Own PR vs. Handing Over the Reins. Entrepreneur. https://www.entrepreneur.com/growing-a-business/should-i-outsource-my-business-pr-or-do-it-myself-it/446669

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Disclaimer
The Ask Christa! show is designed to provide accurate and practical insights into common business challenges and workplace issues. Dr. Christa Dhimo stands by the information she shares and the resources she provides; however, every situation is unique. Listeners are encouraged to use this podcast as a helpful resource while also seeking additional, qualified, professional advice, including but not limited to legal, financial, medical, or other professional advice, as warranted. Ask Christa! and its host disclaim liability for actions taken solely on the basis of the information provided here, especially if taken out of context.