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Why You Should Consider Outsourcing to a System Supplier Instead of Hiring Additional Employees

Published: John Willems

Your company is growing. Clearly, this is a development that is more than welcome. Yet still, important steps should be taken to guide this growth in the right direction. What about your workforce in relation to the company's growth? 

As a growing business, you should ask yourself some pressing questions. Are you going to hire and train additional in-house employees? Would you like to increase in-house production capacity? Are you willing to invest? If yes, do you have sufficient cash flow available to invest?

Your own employees

It probably sounds like music to your ears: a successful and growing company with increasingly more employees. You own and control the production process yourself, you keep knowledge and skills secured in the company and you work independently from other companies. But does this encompass the ideal situation? Is your belief in this way of working rationally justified and realistic? Or is this conviction blinding you to alternative possibilities that may facilitate growth?

With our extensive experience as a system supplier, we know that such beliefs may significantly hinder the constructive and futureproof growth of OEMs. Those who choose to outsource production to a system supplier agree: outsourcing to a system supplier merely brings advantages. We would like to explain this in greater detail.

1: handling demand in a flexible way

When dealing with constant growth and stable demand, it is realistic to consider expanding your workforce. Yet, in reality you are probably dealing with (highly) volatile demand. When demand reaches its peaks, you need additional employees. But how do you keep these additional people going when demand declines for a shorter or longer period of time? Chances are high the actual number of employees are in discord with actual demand in any given period of time.

As a system supplier, we are better equipped to handle fluctuating demand; we have multiple clients in differing markets. Our customers are in the graphic industry, the packaging industry, agrifood and high-tech equipment, just to name a few. All of these markets are dealing with highs and lows in demand. Collectively, these fluctuations will never occur simultaneously. This enables us to find the right balance and to utilize production capacity efficiently.

2: making the most out of expertise

We are specialists in mechatronics. Since MTA realizes projects in diverse markets, our engineers and mechanics developed extensive knowledge in many fields. This variety results in new insights at our company. In turn, OEMs can reap the benefits. Cross-fertilization of technologies often results in further improvement of a product and in increased competitiveness.  

3: No investment risks

Hiring and training employees impacts the cash flow, especially when your production output decreases due to lower demand. Expanding your workforce does not only require an investment in employee costs; you have to invest in the physical accommodation of your company and additional production capacity as well. Clearly, this investment comes with its risks. When you choose to outsource, you work around this risk. After all, when outsourcing you no longer have to spend money on the aforementioned pre-investments. This implies you can devote your cash flow to other forward-looking matters, such as the development of new products. Another interesting fact: the belief that in-house personnel is cheaper is found to be untrue.

Gaining trust

We hope the information presented above has given you valuable insights with which you can answer the question: ‘Should I hire additional employees or should I outsource to a system supplier?’. Yet, we understand the choice for a system supplier is a big step for your company. Who other than your own company is better able to produce your machine or system? Yet still, you should be unafraid the quality of your product decreases when you choose to outsource. We have extensive knowledge in house, we ask the right questions, we keep our promises and we guarantee the confidential information you share with us will be kept secret. Therefore, you will experience us as a reliable and trustworthy partner that delivers the optimal end-result, time after time.

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