Outsourcing is the process of redirecting some of the tasks and/or projects your company has to take care of to outside agencies or freelancers from the same country or from different ones. In this respect, outsourcing differs from offshoring, which only relies on international contractors. Knowing what outsourcing is doesn’t ensure that you’ll be able to successfully apply it to your business. Before relying on this practice, you should be familiar with the main pros and cons of outsourcing. Which is why we’ve created a list you should definitely check out.
Pros and Cons of Outsourcing
1. You Save Money
Perhaps the most important benefit of outsourcing is the fact that you save quite a lot of money by using outside labor. This is especially true if you decide to go with international contractors, which are typically cheaper than domestic ones. There are also other ways in which outsourcing can help you minimize costs. For instance, you’d be saving money from operational costs and new recruitments.
2. Business Is More Flexible
Since you’re not signing any long-term contracts with the contractors, you enjoy more flexibility to switch to another one when things don’t go according to the plan. There are many freelancers out there waiting for an opportunity to prove themselves, so you have plenty of options to choose from whenever you decide to end your collaboration with someone.
3. You Get Things Done Faster
If you have a significant workload you have to take care of, outsourcing can save you a lot of time. That’s because you can hire multiple people for different jobs, without having to hire additional employees to work for you full-time. Plus, due to services such as Freelancer, Odesk, or VWorker, you don’t have to worry about organizing and streamlining staff management. This becomes extremely easy to do online.
1. It’s Difficult to Control the Quality of the Work
Outsourcing a job is not the same thing as hiring an actual employee that you can test and interview. While there is a screening process involved, it’s not extremely reliable. As a result, one of the main problems of outsourcing is that you might end up with low-quality work. Which is why we recommend considering a quality control system every time you outsource.
2. You Might Experience Delays
Since communication is not that easy in the case of outsourcing as in the case of more traditional forms of employment, you should expect delays in project and task completion. These delays can have several causes, from miscommunication, to inaccuracies, to communication lag, and so on.
3. You Don’t Have Total Control
For people who need to have total control over the way their business is handled, outsourcing might seem impossible. That’s because when you outsource a task, you also share responsibility with someone else. Moreover, you let that someone take control of part of your business, which might be an unpleasant thought for many. Not to mention the fact that outsourcing also means you’re going to provide contractors with customer information that you might have preferred not to share with people from the outside.
We hope these pros and cons of outsourcing have managed to help you decide whether this practice is the right choice for you or not.
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