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Your core service: should the thing you sell stay in-house?

Outsourcing core service delivery: when the thing you sell must stay in-house, when white-label or subcontracted delivery works, and what to keep.

By Dhanushka Pinto, Co-founder / DirectorPublished 3 min read
Outsourcing core service delivery: key takeaways infographic by Global Bridge Labs
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Key takeaways

Outsourcing core service delivery is the riskiest outsourcing decision there is. If customers choose you for the way you deliver, keep delivery in-house. If they choose you for your relationship, design or guarantee, and delivery is standard, subcontracting can work. Either way, keep the customer relationship, quality standards and final checks, and never hide subcontracting where it matters.

  • If customers buy your delivery, keep it in-house.
  • If delivery is standard, subcontracting can work.
  • Always keep the customer relationship and quality checks.
  • Your customer contract stays with you, whoever delivers.

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Why is core delivery different?

Because it is what customers pay for. Outsource the back office and a mistake is an inconvenience; outsource the core service and a mistake is the product failing. You also risk building your provider's skills and customer knowledge instead of your own.

When should core delivery stay in-house?

When any of these is true.

  • Customers choose you for how the work is done.
  • Delivery skills are hard to find or train.
  • Quality failures would be serious or public.
  • The know-how is your competitive advantage.

When can subcontracting work?

When delivery is standardised, quality can be specified and checked, and capacity matters more than method, for example overflow work in a peak, or specialist tasks outside your core skill. You remain responsible to the customer under your contract and, for consumers, under the Consumer Rights Act.

What stays with you even when delivery moves?

The customer relationship, the specification, the quality standard, the final check and the response when something goes wrong. These are what customers rely on you for.

What does this look like in practice?

A pattern we see: businesses that outsource the admin around delivery, such as scheduling, paperwork and customer updates, give their skilled people more time on the work customers pay for, without the risks of outsourcing the work itself.

Core delivery checklist

  • Ask why customers choose you.
  • Keep delivery that is your advantage.
  • Subcontract only standard, checkable work.
  • Keep relationships and final checks.
  • Outsource the admin around delivery first.

Next step

Ask your three best customers why they chose you. If the answer is how you do the work, that work stays in-house.

Message us on WhatsApp, or book a 30-minute consultation.

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Sources and further reading

Frequently asked questions

Should you outsource your core service?

Usually not, if customers choose you for how you deliver it. Subcontracting can work when delivery is standardised and quality can be specified and checked. Either way, keep the customer relationship, quality standards and final checks in-house.

Am I responsible if a subcontractor does poor work?

Yes, to your customer. Your contract is with the customer, and for consumers the Consumer Rights Act requires services to be performed with reasonable care and skill. You may have a claim against the subcontractor under your agreement with them.

What is white-label service delivery?

It is when a provider delivers a service that you sell under your own brand. It can work for standard services, but you remain responsible to customers, so you need clear specifications, quality checks and control of the customer relationship.

Written by

Dhanushka Pinto
Dhanushka Pinto
Co-founder / Director

Global Bridge Labs (GBL) is a UK–Sri Lanka partner for social media, websites and BPO. Everything here comes from client delivery, not theory.

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