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Should Entrepreneurs Outsource or Hire Experts In-House?

Musnad E Ahmed

Musnad E Ahmed

Last modified on October 8, 2022

Should Entrepreneurs Outsource or Hire Experts In-House?

Outsourcing has always been a reliable option for most startups but what impact has it truly made on entrepreneurs of businesses of every scale? The in-house staff has also had a positive standing among many business organizations best known for their coordination and communication speed.

It has been a disputed fact that entrepreneurs benefit heavily through the support of BPO industries, however, the collective data sheets suggest that outsourced services benefit business entrepreneurs immensely.

Nevertheless, the ongoing argument rages on about whether business owners should outsource or rely on in-house staff. We will address that issue below in full detail and settle this dispute entirely.

Outsourcing at a Glance

2021 has seen a massive boom in the outsourcing sector after reeling from the effects of indefinite lockdowns and the closing down of centralized offices. Work processes had to be carried out from home or through overseas BPO industries.

The business process outsourcing industry has provided entrepreneurs with ample opportunities to consider them as a cost-effective alternative to in-house office staff. Moreover, the added expertise of specific skill sets emerging in developing countries has opened up an entirely new pool of specialized recruits which in-house staff cannot possibly rival.

This proved especially useful when developing countries have had a minimal effect because of the pandemic, and were able to continue their work processes even throughout extended lockdowns. The BPO sector has more or less gained a strong foothold in the employment and recruitment sectors and continues to provide top-notch services for entrepreneurs seeking to hire them.

Why Do Entrepreneurs Continue to Hire In-House Staff?

The outsourcing sector has impacted both startups and large-scale businesses immensely with their specialization in recruiting the right staff for their operations. Although that may be the case for most entrepreneurs, the scene has remained the same for quite a number of them who continue to rely on in-house staff.

For the most part, quite a large number of entrepreneurs aren’t aware of how outsourcing even works while a significant number don’t know about the benefits. It is quite obvious why outsourced staff stand out among their counterparts but for argument’s sake, let us look at a few pros and cons of hiring in-house staff just to balance out the competition.

Pros of Hiring In-House Staff

Entrepreneurs know the obstacles which they face while recruitment and training which is why they are able to hand-pick the most suited experts for the job. This includes meticulous assessment followed by training which is usually conducted under the watchful eye of the authority.

In-house staff can be easily available whenever business owners need them and they are there at any given time, unlike outsourced staff who require a certain buffer time while the communications go through. Employers also believe that it is much easier to manage and monitor in-house staff that impacts their productivity better than that of outsourced professionals. It may not be all right but just a few things employers feel may weigh in when deciding to hire outsourced workers.


Cons of Hiring In-House Staff

Most large business organizations and corporations are scrapping the idea of hiring in-house staff due to their long list of disadvantages. The first and most prominent disadvantage when hiring in-house staff is the multitude of costs involved.

If you’re a business owner operating from the United States, you know you’re gonna have to pay your in-house staff a lot, and even then it is less likely that they will prove to be useful. Another cost that entrepreneurs incur is the purchase of office space complete with equipment.

Furthermore, managing the in-house staff can take a toll on priorities and entrepreneurs may miss out on the opportunities to grow and diversify. With all that in place, there are still the risks of an employee suddenly deciding to quit. This can make employers go on a wild goose chase to hire the next best office staff, which all by itself is a grueling process.

Why are Entrepreneurs Switching to Outsourced Staff?

Business process outsourcing has always proved to be useful. It has immensely impacted the global industries and facilitated the grounds for international trade. Increasing numbers of entrepreneurs are now switching over to offshore outsourcing for its numerous benefits.

Pros of Hiring Outsourced Staff

To start things off, outsourced staff have a more unique skill set than usual in-house staff. Their ability to adapt and learn new skills stands unprecedented. Suppose a business organization has decided to start a team of telemarketers in the US. The likelihood of finding suitable candidates within that region who have the skill set required to get the job done right will be relatively low.

Moreover, staff salaries will be high as well. If that same business organization looks to outsource this department to a BPO call center in Bangladesh, the results will be unbelievable. The salary structures of call center agents in Bangladesh are nearly ten times lower in comparison without compromising their lifestyle.

Furthermore, the economic status of Bangladesh makes it a prime location to outsource. It has also developed demography with a skill set that caters to the requirements of this job. Outsourcing can be both cost-effective as well as effective in getting the job done right. Entrepreneurs can hire highly skilled staff at lower prices, and forget about wasting their time in prolonged recruitment and training.


Cons of Hiring Outsourced Staff

The reputation outsourced staff have left for any entrepreneur who hires them has never been negative. The only cons you’ll find are either from those who have been completely uninformed about the existence of BPO industries, or those who have limited knowledge about the benefits of outsourcing.

There are some obvious drawbacks to outsourcing which more than often is not even a major issue for entrepreneurs. The most common reason for dissatisfaction among business owners is the lack of communication and coordination.

This all by itself isn’t something common among outsourced service providers but a select few who fail to report on time. Entrepreneurs face little to no delay with the best BPO service providers and the experience helps them elevate their status.


After having assessed both options, it all weighs in the favor of outsourced services over the in-house staff that entrepreneurs should look to hire. In-house staff, even though closely located, can often be cumbersome and burdensome for employers to recruit, train and handle while outsourced staff has almost no issues with providing the best performance for startups and growing businesses.

Sales organization and business process outsourcing specialist with over 15 years experience in building and running highly efficient sales and customer support organizations, and in providing board and project level consulting to the sales and service organizations of leading companies all over the globe. Developed and implemented staffing strategies and programs that improved operational outcomes and maximized the available staff resources. Specializes in client experience, business process re-engineering, business requirements development, contact center optimization, customer relationship Management, staff training and motivation, and organizational analysis. Has led multiple teams in the successful development and implementation of new business models in BPO industries.

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