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The Good and Bad of Outsourcing

An increasing number of businesses are discovering the many advantages of outsourcing. The outsourcing market is expected to continue on an upward trajectory for years to come. However, there are also disadvantages. What are the real pros and cons and can the cons be avoided?

From the perfect managed IT solution to product development, outsourcing is available for more areas of your business than ever before. Despite the availability, it doesn’t necessarily mean it’s a good idea for all areas of your business.

Pro – a Broader Scope of Talent

When you’re employing someone, you’re limiting your potential candidates to people geographically situated in your area. This limits the pool of talent you have access to. Outsourcing provides you with a global talent pool at a variety of rates. It allows you to use talented and experienced people all over the world, rather than taking a chance on a less suitable local candidate just because they can make it into your office on time.

Con – Communication Issues

Someone who isn’t situated in your office can be harder to get hold of when you need them, especially if they’re in a different time zone or use other means of communication. Simply being aware of the potential problem can mitigate this to some degree. Using a reputable company that’s available for the hours you need, and by pre-agreed methods of contact, will greatly reduce the risk this will cause you a serious headache.

Pro – It’s Cheaper

Outsourcing a task is often cheaper than taking on more employees. Your only responsibility to a company is to pay your bill, whereas an employee will represent a bigger level of commitment. It also eliminates much of the need to train a new employee, as providing the promised service will be the responsibility of the outsourcing company. The differences in the global economy can also mean you can find highly qualified people for a lower cost.

Con – Lack of Control

It can be far easier to maintain control when a physical employee is located in your office. As a contractor, the company you outsource to are responsible for the quality of the service. Much like many service providers, you can check the track record of a company before entering into an agreement with them. You can also regularly test the levels provided by running intermittent tests to ensure the quality and response is to the expected standard.

Be Selective How You Implement Outsourcing

Outsourcing can be easier to implement in the early days of a company, as it simply becomes part of the company culture. However, if you outsource for the first time in an established business it can cause anxiety amongst your workforce relating to their job security.

A good way to combat this anxiety is by having the discussion with your workforce about your reasoning behind outsourcing. Most of the anxiety will disappear if they don’t have to guess what you’re thinking and have a clear picture of the way the company is progressing.

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