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5 Benefits from Outsourcing

The dictionary definition of Outsourcing is “to obtain goods or services by contract from an outside supplier”. Over the past thirty years this trend has become an integral part of business management on a global scale, and according to Fortunly the market size for global outsourcing reached $92.5 billion before the pandemic.

There are many areas of business which lend themselves to being outsourced, these include:

But why should you outsource theses services?

1 – Expertise: No one is an expert at everything. We all have strengths and weaknesses. Why struggle to do a task which is fundamental to your business when you don’t have the expertise or experience to do it well. Outsourcing gives you access to an extensive talent pool allowing you to work with suppliers with proven skills and years of experience.

2 – Reduce cost and overhead expenses: This is possibly the main reason why most businesses start to look at outsourcing. Every business is keen to be more efficient at lower cost. The savings can come from:

Cutting down on hiring costs, whether you have an inhouse team or use external agencies the cost of recruiting new staff can be eye watering.

Leveraging low wages in offshore countries. There can be a cost saving of around 60% by outsourcing your software development work to a country such as India.

Reducing the cost of employee training.

Reducing commitments. Pay only for the services outsourced and once the project is completed, you can let them go.

3 – Efficiency and flexibility: Many tasks required to run a business are occasional and therefore recruiting full time employees does not make the best use of resources. Every business requires accountancy services, but may not have enough work for a full-time accountant, so outsourcing such work is more efficient. Outsourcing allows you to be flexible and only buy in additional services when they are required e.g. for a specific project.

4 – Manage Risk: Employee turnover can have a huge impact on the operational resilience of your business, resulting in staff shortages, loss of highly trained staff and increased stress. Outsourcing builds in a certain level of consistency because it allows you to continue operating regardless.

5 – Focus: Business owners need to concentrate on what they do best. It is tempting for small businesses to want to try to do everything themselves as a way of saving money, but this can take them away from their main profit generating tasks. If you spend more hours than you should on tasks that you’re neither good at, nor passionate about, outsourcing may be a smart choice.


From sole traders to global companies, businesses of every size can use outsourcing to help their company grow and expand while keeping expenses as low as possible. However, it is vital that all outsourced requirements are documented accurately to help avoid disputes between the parties.

There are many template documents available on the internet, but these need to be tailored to individual requirements. The better option is to use automated document assembly which is able to individualise a contract based on answers to a series of questions.

If you have any doubt about the requirements of an agreement it is always best to seek independent legal advice before signing any binding contract. At Mattersmith we make the process of outsourcing work straightforward and simple with our tailored outsourcing service. We will follow your specific requirements to draft a clear and concise contract that will provide legal protection for you and your business.

Mattersmith is a recognised body authorised and regulated by the Solicitors Regulation Authority who have developed proprietary software to assist legal teams and businesses to draft, agree, and manage IT and everyday contracts effectively. Please feel free to contact us if you think we can be of assistance to your business: Outsourcing | Contract Management, Drafting & Negotiating | Mattersmith



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Mattersmith Limited is a company incorporated in England and Wales with registered number 11320618, whose registered office is at 11 Telford Court, Morpeth, Northumberland, NE61 2DB, United Kingdom, and is a recognised body authorised and regulated by the Solicitors Regulation Authority with number 650058. © Mattersmith, 2022

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