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Discussion on: Outsourcing -- an inevitable road to failure or a way to optimize the burn rate?

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Mitch Pomery (he/him)

Outsourcing is great if you have distinct, well defined pieces that are only loosely coupled to what you do and aren't your main business. Think about small utilities or marketing apps/websites. They are distinct pieces that you could give to an agency and be confident that they can deliver of them.

But as soon as you try to outsource a core part of your business or something that differentiates your business you increase the likelihood of a subpar result or failure. You could have issues with integration, lose knowledge once the contract ends, or end up with someone who doesn't care about your users as much as you do.

Similarly when hiring contractors and consultants you are doing a form of outsourcing. While they may be in your office while doing the work, the knowledge and experience they gain will leave with them. If you aren't getting them in for a specific skill set that you only need temporarily or making sure you learn everything you can from them, you will have a hard time when they leave.