Running a company nowadays is like a dash through a minefield, namely, it can kill you, metaphorically of course. There is a bewildering number of issues, from budget planning to recruitment of new staff, that needs to be taken a good care of. And the person who is obliged to deal with all those time-consuming matters is the business owner. Fortunately, he or she is not alone as the modern world offers them a helping hand in the form of outsourcing, enabling them to delegate some of the tasks to people from outside one’s company. But is it really so a blissful practice? Some people believe that it has its shortcomings. Therefore, let us judge it ourselves by correlating pros of outsourcing with its cons.
What is considered to be one of the greatest benefits of outsourcing is the reduction of operational and recruitment costs. It’s because outsourcing makes it possible to avoid hiring individuals in-house. This practice, in turn, saves one money spent on training, taxes, etc. What is more, companies once employing only local workers, are given an opportunity to access the international labor market in search of fully-fledged employees. Doing so among local citizens may be hindered by various factors, from the lack of people with the proper education to the lack of interest of potential workers. But such a wide-ranging search is profitable to employees themselves, too. Many of us have somewhat limited resources when it comes to finding a job. The local labor market is supersaturated with people with a given skills, or there is no demand for a particular profession at all due to local labor conditions, distance hampers a successful research, etc. As can be seen, obstacles multiply ad infinitum. Finally, business owners are people, too, and they are not omniscient and all-mighty. There are certain areas of the industry they are not able to cope with. Here is where vendors specialized in a given field are necessary for one’s business to succeed, their expertise, experience, and tools. Thanks to experts, tasks can be completed faster and with better quality output. In the end, efficiency is what really matters.
But there is also the other side of the ”outsourcing” coin. The first serious drawback is the lack of control. You can provide direction regarding what you need to accomplish, but the contractor is not an employee, the person from ”the outside” and not familiarized with the company’s needs, priorities, weak points. And it is knowledge essential to complete tasks and eliminating the risk of failure. Moreover, you cannot be 100% sure whether the outsourced employees will turn out to be as good as you expected them to be. Relying on the help of the outside organizations, not engaged in the inside matters of one’s company, may have a severe and often negative impact on the quality of the work done. And the low quality has become a nail in the business coffin of more than one promising businessman. Last but not least, you risk the disclosure of trade secrets or confidential commercial information to a third-party, especially when the outsourced is, for instance HR.
To Sum Up
Are you in troubles? Tasks and projects pile up? You may outsource some work, but be careful whether benefits balance drawbacks.