Gone were the days when we needed to emphasize the need for outsourcing. Everyone understands its importance and relevance, and today's business can only run profitably by outsourcing certain aspects or parts of their business. Here we are to discuss something very vital and what not to outsource. The threat of outsourcing the following areas can sometimes be so threatening to the business itself let's answer with a simple question.

What not to outsource?
There is no direct answer to this question is obvious, while the not-so-obvious answer is it depends on the category, business size, and overall market or environment one operates. So as an alternative approach let's check what are the area's irrespective of the variables mentioned above one should always be careful when we outsource.

Strategic decision: This is the essence of any business breakthrough, though strategic consulting is a very good option, and any growing companies often resort to this consultation for some clarity and new ways to tackle the business dynamics. While consultants, stakeholders, and partners give a balanced perspective of the pros and cons of a decision. The ultimate decision call always should be made by the business owner alone. No entrepreneur can afford to outsource this.

Research and development: R&D is the launchpad of the future of any company. It is going to pay way to immense possibilities that we can take the business forward. Based on the technology, market scenario, and a company's willingness to pursue or create new categories and areas that are yet to be defined, all can be achieved by the right research. Outsourcing this or any innovation activity can be limiting to a company's growth.

Core finance : Finance is driven by process and adhering to strict policy and governance once we outsource the core financial activity of the company the entire finances of the company will be at risk as it will depend upon the the outcome of how the outsourced company is going to implement our process and governance policy. Also, there might be a huge risk to data security when we have to transact through a third party. Overall core finance is an area we should avoid outsourcing at all cost.

Customer Service : While most businesses outsource these functions, from an SME standpoint this should not be outsourced. This is to avoid misunderstanding and delays in response time, leading to poor customer satisfaction. More often we will get a lot of business insights if the stakeholders are directly involved with customer feedback and service and the same would be missed if we outsource.

Outsourcing does indeed provide a competitive advantage to businesses in many functions. However, we should always look at it from our business size and category perspective when we take it up. It's not only the above said area depending upon your line of business you need to decide if you can outsource the same or not. It is better as a business owner you can take input from a consultant or an industry expert before you make any major decisions on it.