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In a previous life, I worked as a Sales Rep for an IT Outsourcer.  I had a conversation with the head of IT for a relatively large resource company regarding outsourcing.  His comments have always stuck wtih and I thought I would share them now.

There are only three reasons as to why someone should outsource.

1. They don't have, want to have, or need to have the skills in house.
2. They are doing the current activity so badly, that they have no choice but to outsource.
3. They are doing the current activity so well, that the only improvements that can be foreseen, is through economies of scale.

I am going to add a 4th reason - one which is more relevant to SMB/SMEs.

4.  You don't have the time to do it in house.

Reason number 4 is a very important to many SMB owners who are everything to that business.  If you don't have the time to focus (perhaps devote is a better word) on your online marketing needs and realise it is important, then outsourcing is a great option.

I also firmly beleive that OutSourcing is the wrong term - it should be "Smart Sourcing".  Sourcing the best vendor or combination of vendors that you are able to manage in order to get the job done and generate the results you need.