Is outsourcing a good way to make business grow?

Well, that’s the million dollar question, isn’t it? These days, outsourcing is BIG. Many entrepreneurs and business owners depend on it. But an equal number, maybe more, are also staunchly against it. If you’re undecided which way to go with it, though, then you should first know about the pros and cons of outsourcing.

The Benefits of Outsourcing

  1. It will reduce costs.
    This is perhaps the most influential factor for outsourcing. Foreign labor is cheaper, that’s a fact. This lets business owners utilize contracted employees instead of hiring part-time or full-time ones.
  2. Your company is open all the time.
    Foreign locales likely won’t recognize holidays in your native country. That means you don’t need to close shop on those days because you don’t have workers. Your outsourced staff are also most likely on an opposite time zone, meaning they’re working while you sleep. And when they close, your local office is open.
  3. It’s easier to post and manage projects.
    You can use a service to organize and streamline the management of your outsourced staff. This will make it easier for you to post projects and fill the positions in a timely manner. Deliverables, cancellations and payments can all be effortlessly done through web-based tools.
  4. People management is easier.
    Having a contractual relationship lets you replace employees without the usual human resource issues. No personal feelings get hurt either because no strong bond is developed.

The Disadvantages of Outsourcing

Of course, it’s not all roses.

  1. There could be frequent delays in deliverables.
    Many experts call this the “4x Rule.” In states that outsourced projects take 4 times as long to complete. This could be because of a communication lag, miscommunication or problems with implementation.
  2. There will definitely be privacy concerns.
    The laws and rules in the country of origin may not be the same in the country where the business will be outsourced. Because of this, the business owner needs to pay careful attention to things like privacy and intellectual property rights. The risk of having an outsourced employee steal valuable company information is always high and you can’t even be sure how to take legal action if or when it happens.
  3. There could be lack of focus on the project.
    How can you tell if your outsourced team is giving your project the focus it needs? The answer is you can’t. Unless you go all the way there to check, that is. As such, you can only hope that everyone is really doing their jobs right.
  4. There might be personal conflict.
    Your views may not allow you to feel wholly right about sending jobs overseas. After all, there could just be as high an unemployment rate at home. Outsourcing will minimize expenses and allow you to make a tidy profit. That doesn’t mean that your personal and political views can support it.

At the end of the day, there will always be benefits and disadvantages to outsourcing. The only way to see if it will work out for you is to test it out.

Nathan Stewart, 03.08.2014 | Posted in GENERAL 2 comment(s)

Comments

  • Doris Dolly, 13.09.2014, 10:45:

    Wow. Nice work. Keep it going.

  • Mark Evans, 15.11.2014, 10:45:

    The quality of your work is awesome. Keep it up guys.

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