Without a doubt, outsourcing offers an effective scheme to companies today, more so for the ones trying to improve their service while hoping to spend less on labor costs. However, despite being a popular choice a few doubt its efficiency, thus triggering debates. Yet, what’s useful to one may not be helpful to another. Below are the pros and cons of outsourcing non-core business processes.
The Pros and Cons of Outsourcing
Advantages of Outsourcing
Below are a few of the reasons you should source your tasks to an onshore or offshore service firm.
1. Low-Cost Service
Cost is one of the main reasons and maybe the most influential factor why firms farm out their non-core tasks to outsourcing companies and pros. With this business practice easing costs, firms will save much money.
Here are some non-core tasks and functions that are more expensive when done in-house:
- Back-office operations
- Management and administration
- Human resources
This scheme also cuts operating and overhead costs, leading to more profit and savings but with few considerations.
2. Focus on Core Tasks
In outsourcing, you can focus more on your main functions and keep an eye on the work efficiency and output. With a third-party firm or pro doing tasks you don’t know, you’ll have the chance to concentrate on and do well in your abilities.
3. No New Hires
If you can’t do a certain task, hiring an extra in-house worker might not be a wise choice because you must give them training and resources. On the other hand, when you outsource it, your hired staff will serve as your remote worker, helping you save time, money, and effort on onboarding.
4. Access to a Pool of Field Experts
If you outsource to an outside party, you’ll gain access to a greater level of “global skills,” something your big rivals enjoy. With a pro handling your project, the staff can work right away (with no worry for training, tools, and resources), and you’ll get quality outputs.
5. Economy Booster
Outsourcing adds to the economic growth of a country. In fact, it opens opportunities for many job seekers, freelance workers, and even full-time employees. In the same way, it allows access to specialized skills and modern technology needed by firms.
Disadvantages of Outsourcing
However, just like any other business strategy, outsourcing has its drawbacks, too.
1. Lessened / Loss of Control or Authority
The biggest worry you can have when you farm out your business tasks is losing full control of outsourced functions. Likewise, this means you’re placing a part of your business on someone else’s accountability.
2. Low-Quality Service
An outsourcing firm can’t be sure to give you a perfect output or meet your expectations. In such a case, the business’ reputation may suffer, resulting in a loss of clients, sales, and profit.
3. Loss of Job Opportunities in Home Countries
Since outsourcing involves sending work overseas, it can mean loss of jobs in the client’s home country. In turn, this fuels, if not worsens, the growth in unemployment.
4. Risk Exposure
Security issues are threats that outsourcing can bring to either or both contracting parties. In fact, confidential details, sensitive data, and intellectual property may threaten the deal because unforeseen factors can expose them to risk.
5. Communication Problems
Other problems you may have when you outsource to a third-party service firm are mismatched time zone, language barrier, and cultural differences. These small yet crucial factors often affect the practice because poor communication results in poor quality of output.
Services You Can Outsource and Why Do It
To give you an idea of the business services you can outsource and why you should do it, check out the list below.
Are you loaded with overwhelming yet repetitive tasks? On days like this, a virtual assistant (VA) can be your most reliable companion. From email management and customer support to live chat and administrative tasks, you don’t need to worry because a VA can take these loads off your shoulder.
Experts tagged visual branding as one of the biggest outsourcing trends of 2017. They also expected it to keep its pace in the coming years as people yearn for more visual contents. If you think your brand just needs a little facelift, an outsourced graphic designer will be better than hiring and maintaining a full-time employee.
Business management and content writing can take tons of your time. But since you need to do both, outsourcing skilled writers can keep your content updated while you focus on growing and managing your business. You can count on them from articles and blogs to web pages and proposals. They can also help keep grammar lapses and trolls at bay.
If web design and programming make your head hurts, worry no more about building or managing your website. Whether it’s web design, management, or web development, you can always find outsourcing services that will meet your various needs.
As technology progresses and the needs of people escalate, amplifying your online presence becomes crucial. While hiring in-house digital marketers can be beneficial, they can also be expensive and hard to find for startup and small businesses. So, if you want expert services without the extra fees, outsourcing them can be the best option.
While you can find these most outsourced services online, getting services from long-running firms, like Outsource-Philippines, lessens the risks that come with outsourcing.
Learning the pros and cons of outsourcing is vital to those who have just started their business. This system can be valuable but likewise risky, too. As mentioned above, views on outsourcing vary from one person to another. In a greater sense, too, its effects vary, depending on the client’s field itself and the purpose of hiring an outsourcing service.
You must assess the possible results. With a click, you can turn to web-based resources to get more knowledge on the pros and cons of outsourcing. Want to outsource your tasks? Work with Outsource-Philippines, a firm that offers outsourcing services.