Outsourcing – Pros and Cons

In our days outsourcing is becoming more and more popular and some companies are thinking of outsourcing some tasks or whole processes to other companies for different reasons. You can outsource administrative work, customer support, accounting, marketing and a lot more activities to save time and money. If you are one of these entrepreneurs that might think of such an approach you have to get to know the advantages of outsourcing as it is growing so fast and a lot of information is available on this topic.

It is very important to be able to decide whether outsourcing works for your business. Take a look at the advantages:

  1. Cost Saving

This is the main reason why you would outsource part or whole of your business to third party. Because of different tax policies or living standard salaries may vary in another country so you can find a well trained and educated personel for lower price. Actually you only have to pay an invoice to the outsourcing company without thinking of any labor tax or social insurance which leads to reason number 2

  1. There is no need of hiring additional personel

You use the personel from the outsourcing company and you are also not responsible for hiring, training  and onboarding them. There are no costs related to this employee as mentioned above except the fee you pay to your outsourcing contractor.

  1. You can benefit from more talented professionals.

The company offering outsourcing to you might already have qualified personel which you can take advantage of. Very often outsourcing companies are specialized in some acivieties and have a lot better preparation if you need specific type of service – e.g. customer support, accounting and finance.

On the other hand it is always a good idea to think of the disadvantages of transferring part of your business to someone else. You might want to consider the cons of outsourcing.

  1. Communication is not that good

Outsourcing means there is distance between you and the employees responsible for your process so you can’t just go to a college and ask them. You have to consider time zone, language dependency, internet reliability. 

  1. You don’t control the process

Someone else might have control over your process  as you have a contract with the outsourcing company and you work with its employees not yours.

  1. Bad Quality

When paying for a service you are expecting also quality excellence. It is very important that you discuss your expectations with the contractor so there are no disappointments. You can set some targets or limits for achieving the desired results.

Outsourcing – Pros and Cons