A comprehensive guide to identifying which business functions are prime candidates for outsourcing and how to make strategic decisions that drive growth
As your business grows, one of the most critical decisions you'll face is determining which functions to keep in-house and which to outsource. The right outsourcing strategy can accelerate growth, improve efficiency, and free up your team to focus on core competencies. The wrong approach can lead to quality issues, communication breakdowns, and lost opportunities.
This guide explores the key business functions that are commonly outsourced, the strategic considerations for each, and how to determine what makes sense for your specific situation. We'll also examine how strategic business consulting can help you make these critical decisions with confidence.
Before diving into specific functions, it's essential to understand the fundamental framework for outsourcing decisions:
Activities that define your competitive advantage and directly differentiate your business:
→ Generally keep in-house
Essential operations that support the business but don't define your competitive edge:
→ Prime candidates for outsourcing
These are often the first functions companies outsource, as they're essential but time-consuming tasks that don't require deep company-specific knowledge.
Professional customer support can be outsourced to handle inquiries, complaints, and routine customer interactions while maintaining your brand standards.
Best for:
Accurate order entry and processing ensures smooth operations without requiring full-time internal staff dedicated to data entry.
Best for:
Routine data entry, database maintenance, and information processing are perfect for outsourcing to ensure accuracy without tying up internal resources.
Best for:
Calendar management, appointment scheduling, and meeting coordination can be handled by virtual assistants or specialized services.
Best for:
Financial operations require expertise and precision but don't necessarily need to be handled by full-time employees, making them ideal for outsourcing to specialists.
Day-to-day financial record-keeping, accounts payable/receivable, and basic accounting can be outsourced to professional accounting services.
Best for:
Payroll administration is complex, time-sensitive, and must comply with numerous regulations—making it an excellent candidate for specialized outsourcing.
Best for:
Tax planning, preparation, and compliance require specialized expertise that most businesses don't need on a full-time basis.
Best for:
While core sales strategy should remain in-house, many supporting sales and marketing functions can be effectively outsourced to specialists.
Administrative sales tasks like proposal preparation, follow-up coordination, and pipeline management can be delegated to strengthen your sales operation.
Best for:
Specialized lead generation services can fill your pipeline with qualified prospects, allowing your sales team to focus on closing deals.
Best for:
Professional marketing and content creation services can produce high-quality materials without the overhead of an in-house creative team.
Best for:
In-depth market research, competitive analysis, and pricing studies require specialized skills and can be project-based work.
Best for:
Operational functions can often be streamlined and improved through outsourcing to specialists with established systems and expertise.
Supply chain coordination, shipping logistics, and inventory management can be optimized through third-party logistics providers.
Best for:
Flexible staffing solutions allow you to scale your workforce up or down based on project needs without long-term employment commitments.
Best for:
Building maintenance, janitorial services, and facility management are typically more cost-effective when outsourced to specialized service providers.
Best for:
Highly specialized functions often require expertise that's expensive to maintain in-house and may only be needed periodically.
Unless you're a law firm, legal services are almost always outsourced to attorneys who specialize in relevant areas of law.
Best for:
Navigating industry certifications, product listings, and regulatory compliance requirements often requires specialized expertise.
Best for:
Technology support, network management, and cybersecurity can be handled by managed IT service providers who stay current with evolving threats and solutions.
Best for:
On-site technical support and field service representation can be provided by contractors or specialized service providers.
Best for:
Strategic partnerships enable growth without the burden of building every capability internally
Just because a function can be outsourced doesn't always mean it should be. Here are key factors to consider when making outsourcing decisions:
Use this framework to evaluate whether a specific function should be outsourced:
If yes → Keep in-house. If no → Continue evaluation.
If yes → Strong candidate for outsourcing. If no → Consider building internal capability.
If yes → Proceed with outsourcing plan. If no → Keep in-house or improve controls first.
If yes → Outsource. If marginal → Consider strategic value beyond just cost.
If yes → Outsource with proper SLAs and monitoring. If no → Develop measurement framework first.
Pro Tip: Consider partnering with business growth consultants who can provide objective analysis of your outsourcing opportunities and help you avoid common pitfalls.
Never outsource functions that define your competitive advantage or require deep company-specific expertise.
The cheapest option often leads to quality issues, rework, and damage to your reputation. Invest in reliable partners.
Establish clear expectations, regular check-ins, and performance metrics from day one.
Create clear standard operating procedures before outsourcing to ensure consistency and quality.
Choose partners whose values and work culture align with your company to maintain brand integrity.
When expanding into new markets—particularly international expansion—outsourcing becomes not just beneficial but often essential. Companies entering new territories face unique challenges that make local operational support critical to success.
Companies expanding internationally—particularly into North America—should strongly consider outsourcing these functions:
Market entry and establishment
Local regulatory and compliance support
Distribution and logistics coordination
Customer service in local language/hours
Retail relationship management
Local marketing and brand positioning
Successful outsourcing isn't about offloading every possible function—it's about making strategic decisions that allow your business to focus on what it does best while leveraging external expertise for everything else.
Start with non-core functions that have clear deliverables and measurable outcomes
Choose partners carefully based on expertise, cultural fit, and track record—not just price
Establish clear expectations with documented processes, SLAs, and performance metrics
Maintain oversight through regular communication and performance reviews
Scale gradually by proving success with one function before expanding to others
Remember: The goal of outsourcing isn't to eliminate all internal responsibilities—it's to strategically deploy your resources where they create the most value. By partnering with the right service providers for non-core functions, you free your team to focus on innovation, strategy, and the activities that truly differentiate your business in the marketplace.
Strategic guidance can help you identify the right outsourcing opportunities for your business and connect you with qualified partners who align with your goals.
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