Outsourced service providers typically deliver a specific agreed-upon outcome or number of hours. Often if you outsource, your relationship with your outsourcing company is managed via a single point of contact using an account-based model.
If you choose to hire a remote staff, on the other hand, what you have is essentially an extension of your in-house team.
Which one is right for you?
Here are 4 ways that will help you determine whether to outsource or to hire a remote team:
1. Lesser bottom line vs. flexible cost
Outsourcing will be friendlier to your bottom line since you’re usually paying for a completed a project based on a pre-agreed-upon outcome. Often, however, while you get a little breathing room with lower project costs, you will also not be able to adjust the scope of the outcome that has already been set on paper.
You can fully benefit from the lower cost of outsourcing only if you establish great, regular communication to ensure that you are always on the same page as your outsourced team. Otherwise, you stand to incur an additional 14% to 60% in hidden costs—usually stemming from poor quality work, which would mean time spent on revisions and further QA, not to mention pacifying your own clients, over the quality issues and delays.
On the other hand, having a remote team on your payroll means greater flexibility when it comes adjusting the scope of tasks and responsibilities as well as the cost.
2. Outsourcing autonomy vs. greater control over a remote team
The hands-off approach in outsourcing means supervision of your project is in the hands of your outsourcing company—specifically their own project manager, who is more likely your contact person: whatever your feedback and instructions, the project manager then relays to the team.
This is why it’s important to establish a good process, with regular updates and QA checks to avoid delays and additional costs.
3. Modified/diluted vs. maintained organizational culture
Because they work for a separate company, your outsourced team comes with their own established processes and culture—they are not particularly looking to fit in with your in-house team; their main goal is to deliver the project/s they’re hired to work on. When you start working with them, they may just dilute your company culture—which is not necessarily a bad thing if you find a great company with a great culture of their own, which should make them a great team to work with.
On the other hand, as an extension of your in-house team, your remote team are integrated into your company culture and processes, and that makes them instrumental in maintaining, even enhancing, your culture.
4. Independent hiring vs. recruitment control
Hiring, of course, is out of your hands when you work with an outsourcing company. As a matter of fact, by the time you sign the contract, they will already have an existing team ready to start work on your project. That’s one compelling way you save on hiring when you outsource.
With remote staffing, you have the final say regarding who makes up your remote team—as in you can be as hands-on as you want to be in the hiring process.
Outsource, or hire a remote team?
At the end of the day, take stock of where you are now, what you need, what you anticipate. Granted, things will be uncertain for a while, but you should still be able to have an idea of which solution would best suit your business needs.
Want to discuss your options?
Contact Purple Cow today to learn more about our highly scalable, quality-focused remote work and outsourcing solutions.
