Blog Fast White Cat

IN-HOUSE OPERATIONS VS. OUTSOURCING. WHAT TO CHOOSE?

Karolina Obszynska Oct 06. 2021
During the development of a company, every owner at some stage comes across the question – is it better to outsource projects to an external company or invest in their own team and execute all tasks within the company (in-house). Both methods have their benefits, but also faults. Which solution should you choose when creating an online store — outsourcing or in-house?

Outsourcing – what is it?

Outsourcing is the process of hiring a freelancer or agency to execute a specific task. In a situation where you are lacking programmers, do not know anything about Google Ads campaigns, or simply do not have the capacity for running profiles on social media – you can assign it to professionals. For example, hire an experienced eCommerce house. It is one of the best ways to create a functional online store. According to the newest research, as many as 78% of companies around the world very positively evaluate their cooperation with outsourced Partners*. Therefore, there is nothing to fear when commissioning your projects out. Both you and your employees will gain more time for other responsibilities.

- By cooperating with Fast White Cat we were able to design and implement one of the most modern ticket sales platforms on the Polish market. Fast White Cat proposed the most optimal solutions, as well as presenting an interesting and modern approach to the implementation. Our cooperation was set in a professional atmosphere and the Fast White Cat specialists remained open to our growing needs, all the while actively sharing their own experience and knowledge. - Wioleta Grabarska, Director of Visitors at MTP Group.

Read more about the implementation of a modern and intuitive online ticket sales platform for MTP Group in our case study.

In-house operations – what is it?

The opposite of outsourcing is in-house. Such action is based on the execution of all tasks and projects within the company – using your own resources. This means that you do not use the help of freelancers and do not commission anything to outside companies. Instead, you expand your own team with new employees or widen the competences of current employees.

In-house vs. outsourcing – pros and cons

Firstly, you should consider whether the processes or actions which you implemented to date were very complicated. How much did their execution cost? Were these large, complex projects or maybe a few campaigns created "on the go"? However, mainly, you must take into account whether you have the right resources within your company to execute a given project yourself.

Think about what will be more favorable for you - outsourcing or in-house? In order to help you with this, we have outlined the pros and cons of both options.

Outsourcing pros:

 

 

  • It is profitable


 

At a time when the company is lacking programmers and developers, a much more beneficial measure is the delegation of a given task to an external organization. According to the Sedlak&Sedlak report, an experienced programmer in Poland earns an average of 8,5-11,9 thousand PLN. Thereby, assembling a qualified team within the company would significantly strain your budget.

 

  • It saves time


 

Peter Drucker, considered to be the father of modern management methods, said:

"Do what you do best, outsource the rest".

He was right! Outsourcing, so commissioning some tasks to external companies, enables employees to focus on their responsibilities, consequently increasing their productivity.

 

  • High service quality


 

Assigning tasks to a company specializing in a given field will also help you increase the quality of the given project. Their advice and knowledge can also have a positive influence in your employees, at the same time increasing their competences.

Outsourcing cons:

 

 

  • Lack of control over a project


 

This is most often the result of the outsourced team's lack of understanding of the project. This is why it is so important to precisely explain your requirements at the very beginning of the collaboration, defining the business objectives and a specific deadline for the execution of the task at hand. Through this, the external agency is able to report on their work and you can continuously control their actions. Also, if any mistakes or problems appear, these can be easily identified and fixed at any time.

 

  • Problems with communication between teams


 

There is no good cooperation without communication. This also relates to outsourcing. When commissioning your project or individual tasks to an external agency contact between you and them must be regular, with an exchange of remarks and observations. Worth choosing is such an organization with which you feel a mutual flow from the very first conversation.

At Fast White Cat, already at the very beginning, we analyze the business objectives and strategy of our Partners thoroughly. Discussion and a precise understanding of their needs and expectations is a very significant point on the road of good cooperation. Through this we can indicate the most effective solutions, as well as advise against ineffective actions. – says Rafał Tarnowski, Fast White Cat.

In-house pros:

 

 

  • Awareness of organizational cultureEmployees know the culture and needs of your company much better than an external agency. They feel to be part of the organization, due to which they pursue one goal together – product development.


 

  • Easy access to employeesWhen hiring an employee, you always have them on the spot, due to which communication with them is much simpler. Consequently – it is easy to almost immediately introduce quick changes in given projects.


 

 

In-house cons:

 

 

  • High cost of maintaining staff


 

The cost of hiring a programmer or developer may turn out to be much higher than hiring an outsourced agency. There is currently a high demand for experienced programmers. Many companies offer very high salaries, and that, unfortunately, creates the threat of your employee moving to the competition.

Hiring an employee is also associated with providing a place to work, training them, and a monthly salary pay-out. Also, there are projects which require specific skills over only a given period of time. This means, for example, for just two months. After completion of the project the employee will no longer have any responsibilities.

 

  • Lack of experience


 

A programmer by calling – needed immediately… Hiring an experienced person is not such a simple task as it may seem. There is a risk that the person who will join your team will have too poor skills to navigate the tasks assigned to them.

In-house or outsourcing – what to choose?

Choose outsourcing if:

- You do not have employees who can manage with a given task.

- You care about a professionally executed project.

- You do not have the time or budget to train new employees.

Choose in-house operations if:

- You care about constant control over a project.

- You have the possibility of building a team of specialists from your own human resources.

- You have no concerns about hiring new employees.

Summary

If you want to build your online store, then you need solutions which will allow you to focus all your energy on achieving your business goals – without worrying about technological matters. By assigning the necessary tasks to an external agency you do not have to worry about them. Contact Fast White Cat and our experts will advise you on which platform to build your online store on and will help you implement it.

If you have any questions, contact us!

We will gladly ADVISE YOU AGAINST ineffective actions.

krzysztof.jaglinski@fastwhitecat.com