{"id":1086,"date":"2022-02-04T00:00:00","date_gmt":"2022-02-04T00:00:00","guid":{"rendered":"https:\/\/www.simplybusiness.co.uk\/knowledge\/articles\/what-is-outsourcing\/"},"modified":"2025-05-22T13:17:23","modified_gmt":"2025-05-22T13:17:23","slug":"what-is-outsourcing","status":"publish","type":"knowledge","link":"https:\/\/www.simplybusiness.co.uk\/knowledge\/strategy\/what-is-outsourcing\/","title":{"rendered":"What is outsourcing? A simple guide for small business owners"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Need more time to grow your business? Outsourcing can help manage necessary but time-consuming business admin for you, so you can focus on what\u2019s important.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether you need support with marketing and accounting to help your business run smoothly or you need a short-term solution to staff training, outsourcing could be the answer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This guide will help you understand what outsourcing is, the pros and cons, and examples where outsourcing can help your small business.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/management\/what-is-continuous-improvement\/\" data-type=\"knowledge\" data-id=\"1145\" ><strong>What is the continuous improvement process?<\/strong><\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/staff\/how-to-hire-temporary-staff\/\" data-type=\"knowledge\" data-id=\"999\" ><strong>How to hire temporary employees: a simple guide<\/strong><\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/strategy\/crisis-management-guide-for-business\/\" data-type=\"knowledge\" data-id=\"1074\" ><strong>How to write a business continuity plan: step-by-step<\/strong><\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"\/business-insurance\/faq\/what-does-business-insurance-cover\/\"><strong>What does business insurance cover?<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"firstletsunderstandthemeaningofoutsourcing\">First, let\u2019s understand the meaning of outsourcing<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">According to the Oxford English Dictionary, the outsourcing definition is to \u201cobtain by contract from an outside supplier\u201d and to \u201ccontract work out.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This could mean payroll outsourcing, IT outsourcing, or even outsourcing business processes and HR as your business grows.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"5waysoutsourcingcanhelpyoursmallbusiness\">5 ways outsourcing can help your small business<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As a small business owner, chances are you\u2019ll be used to working on every part of running your business, from sales and marketing to actually delivering the service or product itself.  <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re finding you don\u2019t have the time or skills to do certain tasks, it may be time to consider outsourcing. Here are just a few ideas of processes and functions that you can easily outsource to help you grow your small business.  <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"accounting\">Accounting<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Accounting and <a href=\"\/knowledge\/business-tax\/what-is-bookkeeping\/\" data-type=\"knowledge\" data-id=\"1259\" >bookkeeping<\/a> are often outsourced by small businesses. It\u2019s important to get the process right so you don\u2019t risk getting penalties from HMRC, but it\u2019s also time-consuming and challenging if you\u2019re not a financial expert.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Getting a professional accountant can save you money as you won\u2019t have to spend time learning how to balance your books and pay your taxes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"marketing\">Marketing and SEO<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Getting your <a href=\"\/knowledge\/marketing\/how-to-advertise-your-business\/\" data-type=\"knowledge\" data-id=\"1410\" >marketing<\/a> and SEO right helps you attract customers and grow your business, so it can be worthwhile bringing in some experts to help. An external marketing agency can take care of everything from creating content and adverts to website design and social media. Meanwhile, an <a href=\"\/knowledge\/tech\/seo-companies-for-small-business-growth\/\" data-type=\"knowledge\" data-id=\"1518\" >SEO agency<\/a> can support with website performance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If marketing isn&#8217;t something you enjoy, working with the creative experts can help get you started.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large size-full\"><img loading=\"lazy\" decoding=\"async\" height=\"684\" width=\"1024\" src=\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/marketing-agency-at-work.jpg?w=1024\" alt=\"Marketing agency discussing ideas\" class=\"wp-image-3277\" srcset=\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/marketing-agency-at-work.jpg 5367w, https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/marketing-agency-at-work.jpg?resize=800,534 800w, https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/marketing-agency-at-work.jpg?resize=768,513 768w, https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/marketing-agency-at-work.jpg?resize=1024,684 1024w, https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/marketing-agency-at-work.jpg?resize=1536,1025 1536w, https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/marketing-agency-at-work.jpg?resize=2048,1367 2048w, https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/marketing-agency-at-work.jpg?resize=150,100 150w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div id=\"nba-body-001\">\n<\/div>\n\n<p class=\"wp-block-paragraph\"><em>Photograph: Friends Stock\/stock.adobe.com<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"manufacturingandshipping\">Manufacturing and shipping<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Perhaps you have an <a href=\"\/knowledge\/retail\/how-to-set-up-an-online-shop\/\" data-type=\"knowledge\" data-id=\"985\" >online shop<\/a> and work with manufacturers to design and make your products. Or maybe you need help from a courier to deliver your products to customers. By outsourcing these processes, you\u2019re able to spend more time focusing on your strategic direction and sales tactics.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"research\">Research<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Are you thinking of <a href=\"\/knowledge\/marketing\/tips-for-developing-a-product-a-simple-guide\/\" data-type=\"knowledge\" data-id=\"1072\" >developing a new product<\/a>? It\u2019s important to spend time researching the market and understanding your target audience so you know what competitors are doing, and how you can stand out.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Focus groups, surveys and insight gathering all take time, so it\u2019s common for small businesses to outsource this research phase.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"itsupport\">IT support<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019re probably dependent on technology for your business, but what happens if something goes wrong? Whether you need help with your web design or have faced <a href=\"\/knowledge\/tech\/cyber-security-guide-for-small-business\/\" data-type=\"knowledge\" data-id=\"1076\" >cybersecurity threats<\/a>, you\u2019ll need support from an IT expert.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Outsourcing technology could cover a range of tasks, including IT support, security, hosting, data storage, and network recovery and maintenance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"outsourcingexample\">Outsourcing example<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s say you own a <a href=\"\/knowledge\/starting-out\/how-to-become-a-dog-walker\/\" data-type=\"knowledge\" data-id=\"1448\" >dog walking business<\/a> and you\u2019re attracting more clients (and dogs) than you have time to manage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re finding that a lot of your time is taken up with organising your finances and you\u2019re turning down work, you may be missing out on <a href=\"\/knowledge\/strategy\/what-is-business-growth\/\" data-type=\"knowledge\" data-id=\"1206\" >growing your business<\/a> to its full potential.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You could consider investing in <a href=\"\/knowledge\/business-tax\/best-small-business-accounting-software-uk\/\" data-type=\"knowledge\" data-id=\"1262\" >accounting software<\/a> as a way to outsource the financial side of running your business. Alternatively, you could <a href=\"\/knowledge\/business-tax\/how-much-does-an-accountant-cost\/\" data-type=\"knowledge\" data-id=\"809\" >hire an accountant<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using software solutions from a third-party and engaging an external contractor are both considered forms of outsourcing as you\u2019re essentially giving up control in an area of your business to another provider.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;re not sure what to outsource, start by thinking of your strengths and weaknesses. Annelise owns a small bridal shop called The Fall Bride. She shared her secrets to business success: &#8220;Understand your strengths and weaknesses \u2013 capitalise on the strengths and compensate for the weaknesses. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;When you\u2019re just starting out you need to wear many hats but won\u2019t be an expert at all of those different roles \u2013 figure out what is essential to outsource to ensure business success.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the benefits of outsourcing?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Outsourcing means you can <strong>scale your business up and down<\/strong> depending on the need, without having to spend money and time hiring and training new staff.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other benefits include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">more time to focus on core business activities (and what you love)<\/li>\n\n\n\n<li class=\"wp-block-list-item\">increased profitability<\/li>\n\n\n\n<li class=\"wp-block-list-item\">flexibility to increase resources<\/li>\n\n\n\n<li class=\"wp-block-list-item\">more efficient processes<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What are the disadvantages of outsourcing?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The nature of outsourcing means you\u2019re relying on a third party to meet the high standards you set for your business, so you need to be sure you use a provider you can trust.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Disadvantages of outsourcing include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">loss of control of an element of your business<\/li>\n\n\n\n<li class=\"wp-block-list-item\">risk to your business&#8217;s reputation if something goes wrong<\/li>\n\n\n\n<li class=\"wp-block-list-item\">quality or service may not meet your expectations<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">To help mitigate some of these risks, it\u2019s important to have a <strong>clear service level agreement<\/strong> (known as a SLA) with your providers so you can set the level of service you expect. You don\u2019t want to risk losing money or even reputational damage with your clients if your provider isn\u2019t up to scratch.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A SLA makes sure everyone is clear of their responsibilities<\/strong>. It also means you can set measures of performance so you know if the arrangement is working or not \u2013 and the penalties if the agreement isn\u2019t met.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Does outsourcing affect your business insurance?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on your <a href=\"\/business-insurance\/types-of-insurance-covers\/\">business insurance<\/a> policy, you may need to let your insurance company know if you start outsourcing or subcontracting work out to a third party.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s important that you check that any subcontractors have <a href=\"\/business-insurance\/public-liability-insurance\/\">public liability insurance<\/a> in place before they carry out any work for you. And, depending on your arrangement, you may be responsible for their health and safety. If this is the case, it\u2019s likely they\u2019ll need to be covered by your <a href=\"\/business-insurance\/employers-liability-insurance\/\">employers\u2019 liability insurance<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re just outsourcing software solutions, then this isn\u2019t likely to affect your cover, but it\u2019s always a good idea to check your policy documents.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Outsourcing software solutions<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">As we mentioned earlier, using third-party software can be a way of outsourcing certain business processes. For example, you could use:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">\n<a href=\"\/knowledge\/staff\/best-hr-software-for-small-businesses-in-the-uk\/\" data-type=\"knowledge\" data-id=\"857\" >HR software<\/a> \u2013 to automate some of your hiring processes<\/li>\n\n\n\n<li class=\"wp-block-list-item\">\n<a href=\"\/knowledge\/tech\/best-invoice-app-for-small-businesses\/\" data-type=\"knowledge\" data-id=\"1337\" >invoice apps<\/a> \u2013 to help with late payment and reminders<\/li>\n\n\n\n<li class=\"wp-block-list-item\">\n<a href=\"\/knowledge\/tech\/best-payroll-software-for-small-businesses-uk\/\" data-type=\"knowledge\" data-id=\"858\" >payroll software<\/a> \u2013 to calculate pay and report to HMRC in real time<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Remember, it&#8217;s important to consider your <a href=\"\/knowledge\/income\/how-to-calculate-profit-margin\/\" data-type=\"knowledge\" data-id=\"1422\" >profit margin<\/a> when deciding whether to outsource part of your business. Think about money and time that it could save you. If you think it&#8217;ll help your business in the long run then it may be a good option for your business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What\u2019s your experience outsourcing? Let us know in the comments.<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group has-azure-200-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-94e519ba wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--80);padding-right:var(--wp--preset--spacing--40);padding-bottom:var(--wp--preset--spacing--80);padding-left:var(--wp--preset--spacing--40)\">\n<h3 class=\"wp-block-heading has-text-align-center\" id=\"readytosetupyourcover\">Ready to set up your cover?<\/h3>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">As one of the UK&#8217;s biggest <a href=\"\/business-insurance\/\" data-type=\"page\" data-id=\"5152\" >business insurance<\/a> providers, we specialise in <a href=\"\/business-insurance\/public-liability-insurance\/\">public liability insurance<\/a> and protect more trades than anybody else. Why not take a look now and build a quick, tailored quote?<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/quote.simplybusiness.co.uk\/business\">Start your quote<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Photograph: VAKSMANV\/stock.adobe.com<\/em><\/p>\n\n<p class=\"wp-block-paragraph\"><em>Photograph: VAKSMANV\/stock.adobe.com<\/em><\/p>\n<div id=\"nba-body-end\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Outsourcing can help with business admin and processes so you have more time to focus on what\u2019s important. Read more.<\/p>\n","protected":false},"author":3,"featured_media":3276,"comment_status":"open","ping_status":"closed","template":"","meta":{"sb_hreflang":"","sb_hreflang_url":"","disable_breadcrumbs":false,"sb_breadcrumbs":[],"sb_reviewed_by":"","sb_review_date":"","sb_enable_content_gating":true,"footnotes":""},"categories":[341,336,110,343],"hidden-category":[],"coauthors":[25],"class_list":["post-1086","knowledge","type-knowledge","status-publish","has-post-thumbnail","hentry","category-strategy","category-business-structure","category-business-news","category-trades"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>A quick-start guide to outsourcing for small business owners<\/title>\n<meta name=\"description\" content=\"Outsourcing can help with business admin and processes so you have more time to focus on what\u2019s important. 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