Common Outsourcing Mistakes Businesses Can Avoid

Outsourcing tasks to virtual assistants can save a company up to 70% on business operation costs. With employment costs and office rentals having the most significant impact on business costs, a noticeable cut can mean increased revenue and help you scale up faster, regardless of size. Outsourcing does not just imply cost saving; correct implementation can enhance efficiencies and give businesses and hiring managers a more excellent talent pool. However, many business owners, especially founders of startups and small to medium-sized companies, typically fail when it comes to outsourcing. As with other business strategies, outsourcing has some fundamental elements that must be in place to succeed.

Not Understanding How to Hire and Manage People

A typical failure is founders who are highly skilled in their professions and want to self-hire. Many turn to freelancers or place job ads on sites such as LinkedIn. However, most applications are not of excellent quality, and filtering through the masses can be time-consuming. Moreover, failure to check qualifications and previous experience can result in hiring someone unsuitable, which only after practical application can lead to a dismissal. Restarting the hiring process means doubling the costs of hiring and time wasted. This resonates with the truth about managing people. Many managers are not adequately trained to manage talent, and their incompetency breaks down the working relationship, resulting in new hires leaving a company for better working environments. However, such can be avoided if one applies the fundamentals of hiring people for the correct positions and delegating effectively.

Underestimating the costs of outsourcing

Even though outsourcing, in the long run, can be a financial advantage for a business, initially, there are costs involved. Many of these costs can relate to your own business, with no previous provisions made to prepare you for hiring virtual assistants. Such can manifest in the lack of a proper server-management system and delays when transferring information to offshore developers.

Your concept of outsourcing may be simply applying a shoestring budget to your company. In that case, you are making a mistake – outsourcing is an investment; therefore, if implemented correctly, it can lead to cost savings. However, initially, outsourcing costs can typically equal hiring on-site talent. Remaining focused, the costs can be reduced over time, making outsourcing a winning staffing solution compared with in-house hiring.

Outsourcing the wrong tasks

Not all work should be outsourced. Companies need to be realistic and first determine which tasks can be automated. After that, managers and owners can focus on the work they enjoy rather than their dislike. However, some tasks should not be outsourced. Do not outsource the heart of your organization’s vision; this, and your core competencies, should remain in-house.

Areas where you lack the skills, such as social media management, marketing, and customer service, can be outsourced if you have clear guidelines for what you expect. Effective communication is critical to ensuring that your remote staff is integrated into your vision and can add value to expand it.

Have a detailed plan in place.

When you are new to outsourcing or in the position to scale and want to hire virtual assistants, start small. However, have a clear plan of the tasks you want to outsource. Focus on low-level tasks such as adding emails into a CRM system and outsourcing those tasks.

Depending on which country you are outsourcing to, you need well-documented SOPs and the desired results. Set aside time for regular one-on-one meetings to ensure your virtual assistant is onboarding correctly. As Janus Basnov, CSO at Aristo Sourcing, states, slowly increase your talent pool once you are comfortable with your initial hire.

Delegate more non-essential tasks to virtual assistants. Keep in mind that technology changes and, therefore, conduct search-engine updates. Six months ago, companies could generate a wealth of content using AI tools such as ChatGPT.

However, such content is potentially marked as spam or low-quality content, hurting businesses in their rankings. The key is to remain flexible: luckily, when you hire a virtual assistant, you can scale the employee up or down as your position changes. 

The Bottom Line: Common Outsourcing Mistakes Businesses Can Avoid

Outsourcing can be a progressive step forward if you want to scale your business or need flexibility for your startup. Understanding the risks and benefits of outsourcing is critical, and it means being prepared before you venture out and hire remote workers. Understand your business and what you want to outsource, and start slowly. Learn from your first experience; if you need help, contact an outsourcing expert for advice. The sooner you start, the faster you will gain the benefits of outsourcing in the long term. Your on-site employees can focus on their core work, boosting their productivity and reducing burnout – something a pizza day or team building can’t do as well.


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