Every small- and medium-sized business gets to a certain level wherein they are primed for expansion and seek additional options to garner more profit. Good workers are the foundation of any successful business, making it crucial to identify which type of employment can lead to your business growth.

Let us discuss the pros and cons of both in-house and outsourced help, so you can make a well-informed decision before choosing one or the other.

The Difference Between In-house and Outsourced

In-house resources are your existing employees, including you as the owner. Having your employees in-house allows you to monitor progress and delegate projects or tasks.

In contrast, outsourcing entails hiring outsourced resources to aid in completing tasks and projects. These might include freelancers, outsourcing agencies and third-party companies specializing in accomplishing specific tasks such as accountancy, HR functions, marketing, ecommerce, and more. SMEs often resort to outsourcing to expedite the completion of projects and save some money.

Pros and Cons: In-house vs. Outsourced

Now that we've defined both concepts, let us identify the pros and cons of each method. The following examples will give you insights into the advantages and disadvantages of hiring in-house workers or outsourced help.

In-house Pros:

• Investing in new skills

Working with your in-house team allows you to build on the foundation that has been established; every new project is an opportunity to grow and upgrade your in-house team's skills. Additionally, it makes more business sense to invest in training your in-house staff due to the permanence of their employment.

• Invested and flexible team

Enlisting the help of internal workers allows you to be on the same page right off the bat, as these employees share the same company values. In-house workers are invested in the business's success as it directly correlates with their future.

In-house employees have an advantage over outsourced help, as they are more willing to take on tasks out of their comfort zone and find new and creative ways to accomplish tasks. Dedication and willingness make up for small skill gaps

In-house Cons:

• Higher continuous cost

Hiring full-time members is a commitment that could prove to be expensive. Employers are required to pay in-house workers for hours they spend at work. Regardless if they're working on your project or something unrelated, SMEs who need to save their monetary resources can choose to delegate tasks to outsource.

• Skill gap

In-house employees can't be proficient at every job function, and this could be detrimental in some instances if you have permanent employees unequipped to tackle specific projects. This limits your ability to take on tasks outside your team's expertise.

If you choose to remedy the lack of skills of your in-house workers, you must spend on training programs that may not guarantee results.

Outsourcing Pros:

• Cost-effective

Outsourced help is only paid for the hours you'll need them for, unlike an in-house worker whose paid a full salary regardless of work done. If you outsource to someone located in a place with a low cost of living, their hourly rates may even be lower than what you're paying your in-house employees.

• Access to an expert talent pool

If you have a challenging project to undertake and your in-house workforce can't handle it, freelancers and outsourcing agencies offer different specialized skills, even those technical roles such as IT, cloud, website development, and more. It will not be hard to enlist the help of experts who possess a particular set of skills for your project and business needs.

Outsourcing Cons:

• Negative impact on company culture

Enlisting the help of outsourced help may deal a damaging blow to your in-house worker's morale. Some may feel undervalued and overlooked if you merely outsource accounting or other functions to another party. These feelings can decrease efficiency and productivity, negatively impacting your company.

• Less incentive to honor long-term commitments

Outsourced workers have several different clients. They can prioritize projects and tasks as they see fit, which may be detrimental if your delegated task is at the bottom of the pecking order.

It's safe to establish that you're not as invested in outsourced workers' growth as your in-house workers' progress, which is understandable. However, outsourced workers also have the right not to be as committed to your business as they have no stake in the project's outcome.

In or Out?

Enlist the help of highly-skilled professionals for your small- or medium-sized business to experience significant growth. There are options like adding to your in-house team or outsourcing for workers to consider.

Your decision will depend on your business' standards and needs. Keep these tips in mind as you weigh the pros and cons of hiring in-house or outsourced help.