Outsourcing is a vital part of our business ecosystem. Companies large and small depend on third-party service providers for access to cost effective labor solutions, advanced technology, and specialized expertise.

And in the face of mounting labor challenges, businesses in every sector rely on outsourcing services for help today. According to Deloitte’s 2022 Global Outsourcing Survey, 62% of executives say they lack the resources to resolve employee retention issues. Instead, labor-strapped businesses are turning to third-party service providers for both traditional outsourcing and business process outsourcing (BPO) support.

But there are a number of different ways to approach outsourcing, and how you proceed may play a big part in shaping the future of your organization. This begs an important and often overlooked question. Should outsourcing be included in your business plan from the start or you should wait until the need presents itself? 

In other words, should you take a proactive or reactive approach to outsourcing? 

We admit, this is kind of a loaded question. Rarely in life is reactive better than proactive. And certainly, this is true when it comes to business planning. More on that in a bit. 

First, let’s take a closer look at the core differences between proactive and reactive outsourcing.  

Reactive Outsourcing: The Old School Approach

In 2000, reports Statista, the global market size of the outsourcing sector was just over $45 billion. This number would more than double over the next decade, topping $93 billion in 2010. Much of that rapid market growth was built on reactive outsourcing. 

This is the type of outsourcing that typically occurs when a company faces immediate challenges that can’t be managed internally. It’s common, in such cases, to react by enlisting the support of a third party service provider.

Indeed, this was the standard approach in the early 2000s. At the time, rapidly advancing technology and crumbling trade barriers opened up new channels to global trade. Businesses were increasingly turning to overseas outsourcing options to handle sudden surges in demand, close in-house skills gaps, and counteract rising operational costs. 

The approach offered certain advantages—flexibility, short-term project management, and zero upfront investment. But reactive outsourcing is also an approach that lacks strategic foresight. Just as this approach can provide quick fixes, it can also lead to rushed decision-making, suboptimal partnerships, diminished quality control and, in the worst case scenario, damage to your brand identity.

Proactive Outsourcing: Looking Forward

Proactive outsourcing is increasingly recognized as the preferred way to approach operational needs that you choose not to handle in-house. Proactive outsourcing involves integrating outsourcing plans into your business strategy from the outset.

This approach can be particularly beneficial for startup companies with an ambition for long-term growth. When you incorporate outsourcing into your business plan from the outset, you also build scalability into your future. By leveraging external service providers, you put your startup team in a position to focus on core business activities while also also nurturing a partnership that can ultimately growth with you. 

Of course, this approach will require you to plan carefully, to identify the areas of your operation that are best handled by third-party professionals, and to vet providers in search of the best one for your needs. You will need to invest time and financial resources in this preparation. You can, therefore, expect that the upfront costs of proactive outsourcing will be higher than those associated with reactive outsourcing. 

But over time, the benefits of this approach will easily justify the upfront investment. 

How exactly does proactive outsourcing offer this ROI? 

Why it Pays to Be Proactive

Over the last quarter century, outsourcing has carved out a permanent place on the global business landscape. Its near-universal permeation of the labor economy means that more businesses than ever before can access the benefits of outsourcing from the very outset of business development.

How to Implement Proactive Outsourcing For Your Business

So how can you make outsourcing a part of your business plan from Day 1? Below, we outline some of the basic steps you’ll want to take as you build proactive outsourcing into your business plan.

Striking the Right Balance

In business, as in life, few things go exactly as planned. Even companies that begin life with a well-structured strategy for proactive outsourcing may find that their needs change or grow over time. The result, for many businesses, is a hybrid approach that combines both proactive and reactive outsourcing.

This can be a perfectly effective approach with the proper balance. At the core, what matters most is that you find this balance with a partner who understands your business goals and who is committed to helping you reach them.