Dr Tony Aitchison Paradelta Strategy Podcast City Radio

Outsourcing vs insourcing with Dr Tony Aitchison

S2E14
21:32
April 19th 2023

Dr Tony Aitchison is a business growth strategist from Paradelta Strategy, offering advice and guidance to help grow businesses.

On this episode of mornings with Ron Fiedler on Podcast City Radio, where he is discussing the differences between insourcing and outsourcing.

Dr Tony explains that managing time is key and that outsourcing is a great option when there is too much on the plate and not enough people or capability to complete it.

However, if a business is already good at what it does, it may be more beneficial to insource. He emphasizes the importance of understanding the differences between the two before making a decision. Insourcing and outsourcing are two distinct methods for achieving tasks and expanding a business. Insourcing is when a business utilizes its own employees and resources to complete a project or expand into a new region.

Outsourcing is when a business uses a third party to help with time management and scaling. Both methods have their own advantages and disadvantages, and which one is more cost-effective depends on the routine task at hand.

For example, if a business needs to do data entry, it may be more cost-effective to pay its own employees to do the job, as they may cost less than an outsourcing company. Ultimately, businesses should consider both options before deciding which course of action to take. The conversation discussed the advantages of outsourcing versus employing a highly skilled individual.

The advantages of outsourcing are that it is usually cheaper, and the service provider can work on projects when the business is on holiday. Outsourcing is used for mundane tasks that do not require a lot of skill, and companies typically outsource digital marketing, customer support, payroll, and human resources. In addition, there is a financial benefit due to not needing to pay for employee entitlements.

Insourcing is used for tasks that are highly secretive and require intellectual property. There are companies that specialize in outsourcing, and they typically have set standard services.

Outsourcing services are a great way for businesses to free up time and resources by delegating tasks to someone else. Services such as virtual assistants are popular in Australia, as they can provide customized services and often have similar time zones to the business. This can be especially beneficial for those who have hit a growth barrier and need extra help with tasks that cannot be automated.

Sites such as Fiverr and Upwork offer project-based services, but may not be reliable or of high quality. It is recommended to hire a virtual assistant for more individualized and higher-quality services.

Timestamps