Delegate or subcontract

Small businesses often struggle with limited resources and expertise, making it challenging to handle all aspects of their operations.

To overcome these challenges, many turn to outsourcing as a way to delegate tasks to professionals who have the skills and experience needed to get the job done right. However, deciding whether to delegate or subcontract can be difficult for small business owners.

In this guide, we will explore the differences between delegating and subcontracting, and provide tips on how to determine which option is best for your small business. We will also discuss case studies of successful outsourcing strategies used by other businesses in a variety of industries.

Delegating vs Subcontracting: What’s the Difference?

Delegating tasks involves assigning responsibilities to an employee who has the necessary skills and experience to perform the task. The employee is typically a full-time member of the team, and the business retains control over the work process. On the other hand, subcontracting involves hiring an independent contractor or a company to perform a specific task or service for the business.

There are several factors to consider when deciding whether to delegate or subcontract. Here are some key differences between the two:

Flexibility: Delegating tasks gives you more flexibility in terms of staffing and resource allocation, as you can adjust your team based on changing needs. With subcontracting, you may be locked into a contract that does not allow for significant changes in scope or timeline.
Cost: Delegating tasks can often be more cost-effective than hiring an independent contractor or a company, as you are typically paying for only the work you need. Subcontracting may involve higher upfront costs, as you are paying for the contractor’s services and materials in advance. However, subcontracting can also be more cost-effective if the task requires specialized skills or equipment that your team does not have.
Risk management: Delegating tasks allows you to retain control over the work process, which can help mitigate risk. With subcontracting, there is a higher degree of risk involved, as you are entrusting the work to an outside party who may not have the same level of expertise or accountability as your own employees.
Intellectual property: Delegating tasks typically involves internal communication and collaboration within the business. Subcontracting may involve sharing intellectual property with an external party, which can be a potential risk for businesses that rely heavily on proprietary information.

Delegating vs Subcontracting: What's the Difference?

Case Studies: Successful Outsourcing Strategies

Many small businesses have successfully used delegating and subcontracting to improve their operations and grow their business. Here are some examples:

XYZ Company: A marketing agency based in New York, XYZ Company struggled with limited resources to handle all of their client’s needs. They decided to delegate tasks such as social media management and content creation to freelancers, allowing them to focus on more specialized tasks such as strategy development and campaign management. This allowed them to expand their client base and increase revenue without sacrificing quality.
ABC Company: A software development company based in California, ABC Company found that they were struggling to keep up with the growing demand for their services. They decided to subcontract tasks such as testing and quality assurance to independent contractors, allowing them to scale up production quickly and efficiently. This allowed them to take on more clients and increase revenue without compromising on product quality.
DEF Company: A retail company based in Australia, DEF Company found that they were struggling to manage their inventory and fulfillment processes. They decided to delegate tasks such as order management and shipping to an outsourcing partner, allowing them to focus on more strategic tasks such as product development and marketing. This allowed them to reduce costs and improve customer satisfaction.

Tips for Successful Delegating and Subcontracting

Whether you decide to delegate or subcontract, there are several tips you can follow to ensure success:

Understand the tasks that need to be delegated or subcontracted, and identify the skills and expertise required for each task.
Establish clear communication channels with your delegates or contractors to ensure a smooth workflow and avoid misunderstandings.
Set specific goals and expectations for the tasks being delegated or subcontracted, and establish a timeline for completion.
Ensure that your delegates or contractors have access to the necessary tools, resources, and information to complete their tasks effectively.
Monitor progress regularly and provide feedback to ensure that the tasks are being completed according to your expectations.