It’s important to make every penny count as a small business owner, which is why lots of businesses prefer to hire freelancers for ad hoc jobs, rather than taking on employees to complete the same work.
Outsourcing can do more more than just save you money, though. In this article we’ll look at the benefits of outsourcing tasks, and how to find freelancers to do the work.
What is outsourcing?
Outsourcing work means specific business tasks or functions are given to external service providers (usually freelancers) to handle, rather than the work being completed in-house.
It often gives you more choice and flexibility, allowing access to specialist skills if and when you need them.
Different types of outsourcing
There are actually a few different types of outsourcing to be aware of, such as:
- Outsourcing key business-related functions like marketing
- Business Process Outsourcing (BPO) (for example, payroll or customer support)
- Information Technology Outsourcing (ITO)
- Knowledge Process Outsourcing (KPO) – usually highly specialised functions such as accounting or research
Why outsource?
Like anything, there are pros and cons to outsourcing. It can be more cost-effective than hiring a full-time employee, particularly if it’s only for a short-term project.
You won’t need to worry about additional costs or responsibilities (like making pension payments and National Insurance contributions, or arranging Employer’s Liability Insurance).
It can also be faster. Outsourcing a task to someone who specialises in that specific function is likely to mean they’re highly experienced and able to be very efficient.
More broadly, outsourcing gives you access to a large range of skills, many – or even most – of which may not be available to you in-house.
Can I outsource for long-term projects?
Lots of businesses outsource tasks on a long-term basis – such as accounting or legal services, or you might have longer projects which you need help with. Just be careful around the IR35 rules if you do hire a freelancer who comes to sit in your office every day as if they were a regular employee. It can muddy the waters around disguised employment, and that can have tax implications for both of you!
How do I find freelancers?
Most online job sites will simply let you advertise for freelancers, but there’s always the option of looking on freelance marketplaces..
For example, if you’re looking for project-based services you can check out Fiverr, or if you’re looking for a few freelancers that work in a wide range of fields, you might look at Upwork.
These can be a great resource, providing access to hundreds – if not thousands – of available freelancers looking for work.
Most freelance marketplaces even allow you to filter for the exact skills and experience level you’re looking for.
How do I choose a freelancer?
Even once you’ve found some potential options, you still have to make a choice between them. Generally speaking, it’s important to consider things like cost and flexibility.
The idea of selecting the right expert to work with can be daunting if it’s not an area you’re familiar with. After all, that might be why you’re hiring them! It’s usually worth looking at their portfolio or other examples of clients and work, and asking for any testimonials.
Check their portfolio
If you’re struggling to decide whether or not to hire a particular freelancer, previous examples of their work can be very helpful, giving you a tangible idea of what they’d bring to the table.
While a more generalised approach to freelancing may work for those with a diverse set of skills, you typically want to pick someone who specialises in exactly the kind of work you’re asking them to do.
In other words, you want a specialist, not a generalist.
A solid portfolio serves as proof that a freelancer knows what they’re doing, whereas an absent one may be a sign that they’re relatively new (and therefore lack experience).
Look at their track record
In a similar way, testimonials from previous clients are a good sign a freelancer can be trusted to follow through and get the job done.
Hiring someone obviously comes with a high degree of risk, and so any reassurance you can get is vital. If a freelancer is able and willing to give you past case studies to look over, that’s an even better sign.
Get in contact with them
This is a good way to test how responsive they are. Simply shoot them an e-mail and see how long it takes for them go get back to you.
If they take a while, that could be a sign they’re either too busy or don’t see freelance work as a priority. But be fair – they might be away, or this might be a one-off! Either way, it’s a window into how your communication could go if you were to hire them.
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.
