Outsourcing can be a controversial practice. Of course, when many people hear the term, they think of “offshoring,” or sending jobs overseas. We don’t really run into that much in the mortgage industry, but outsourcing can be trick in our line of work for a different reason. We make promises to customers and investors; hiring someone else to do part of our work for us is taking a risk. If they fail us, we fail our customers and investors. So, here’s the million dollar question: when is it worth taking the risk to outsource some part of our business?
When I first entered in the mortgage industry, I had no experience in business. My boss took a chance on me, though, and I actually ended up doing pretty well. I was a “people person,” and excelled at building relationships as a loan originator. However, I was really bad at math, and my boss was struggling with what to do about it.
Eventually, my boss was given a simple piece of advice that ended up saving my career: why don’t you hire him an assistant? Someone was brought on to work with me to pick up the slack in the areas where I was deficient—and the whole company was made better off for it. That’s the power of outsourcing: none of us can do everything well, but all of us can do something amazingly well. Outsourcing is about recognizing what we’re good at and recruiting others to help us with what we’re not.
So, when should you outsource work in your organization? When someone else can do it better. If you can find someone outside of your company who can perform a function that makes your organization stronger, then you are taking a greater risk by not hiring them. Sometimes, the best reason to outsource is precisely because your customers and investors are counting on you.